Note 4. Loans/Leases Receivable

The composition of the loan/lease portfolio as of December 31, 2019 and 2018 is presented as follows:




	2019		2018
	(dollars in thousands)

C&I loans *	$	1,507,825	$	1,429,410
CRE loans
Owner-occupied CRE		443,989		500,654
Commercial construction, land development, and other land		378,797		236,787
Other non owner-occupied CRE		913,610		1,028,670
		1,736,396		1,766,111

Direct financing leases **		87,869		117,969
Residential real estate loans ***		239,904		290,759
Installment and other consumer loans		109,352		119,381
		3,681,346		3,723,630
Plus deferred loan/lease origination costs, net of fees		8,859		9,124
		3,690,205		3,732,754
Less allowance		(36,001)		(39,847)
	$	3,654,204	$	3,692,907
** Direct financing leases:
Net minimum lease payments to be received	$	97,025	$	130,371
Estimated unguaranteed residual values of leased assets		547		828
Unearned lease/residual income		(9,703)		(13,230)
		87,869		117,969
Plus deferred lease origination costs, net of fees		1,892		3,642
		89,761		121,611
Less allowance		(1,464)		(1,792)
	$	88,297	$	119,819

* Includes equipment financing agreements outstanding at m2, totaling $142.0 million and $103.4 million as of December 31, 2019 and 2018, respectively.

**Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors and management’s expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The large majority of leases with residual values contain a lease options rider which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

At December 31, 2019, the Company had six leases remaining with residual values totaling $547 thousand that were not protected with a lease end options rider. At December 31, 2018, the Company had nine leases remaining with residual values totaling approximately $828 thousand that were not protected with a lease end options rider. Management has performed specific evaluations of these unguaranteed residual values and determined that the valuations are appropriate. There were no losses related to unguaranteed residual values during the years ended December 31, 2019, 2018, and 2017.

***Includes residential real estate loans held for sale totaling $3.7 million and $1.3 million as of December 31, 2019 and 2018, respectively.

Note 4. Loans/Leases Receivable (continued)

Changes in accretable yield for the loans acquired in the mergers and acquisitions are as follows:


	For the year ended December 31, 2019
	PCI		Performing
	Loans		Loans		Total
	(dollars in thousands)

Balance at the beginning of the period	$	(667)	$	(10,127)	$	(10,794)
Reclassification of nonaccretable discount to accretable		(275)		—		(275)
Accretion recognized		885		3,749		4,634
Balance at the end of the period	$	(57)	$	(6,378)	$	(6,435)


	For the year ended December 31, 2018
	PCI		Performing
	Loans		Loans		Total
	(dollars in thousands)

Balance at the beginning of the period	$	(191)	$	(6,280)	$	(6,471)
Discount added at acquisition		(293)		(7,800)		(8,093)
Reclassification of nonaccretable discount to accretable		(892)		(470)		(1,362)
Accretion recognized		709		4,423		5,132
Balance at the end of the period	$	(667)	$	(10,127)	$	(10,794)


	For the year ended December 31, 2017
	PCI		Performing
	Loans		Loans		Total
	(dollars in thousands)

Balance at the beginning of the period	$	(194)	$	(9,116)	$	(9,310)
Discount added at acquisition		(220)		(2,224)		(2,444)
Accretion recognized		223		5,060		5,283
Balance at the end of the period	$	(191)	$	(6,280)	$	(6,471)

Note 4. Loans/Leases Receivable (continued)

The aging of the loan/lease portfolio by classes of loans/leases as of December 31, 2019 and 2018 is presented as follows:


	2019
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total
	(dollars in thousands)

C&I	$	1,499,891		$	6,126		$	572		$	—		$	1,236		$	1,507,825
CRE
Owner-Occupied CRE		443,707			177			71			—			34			443,989
Commercial Construction, Land Development, and Other Land		375,940			2,857			—			—			—			378,797
Other Non Owner-Occupied CRE		909,684			73			—			—			3,853			913,610
Direct Financing Leases		85,636			463			253			—			1,517			87,869
Residential Real Estate		235,845			2,939			414			—			706			239,904
Installment and Other Consumer		108,750			3			10			33			556			109,352
	$	3,659,453		$	12,638		$	1,320		$	33		$	7,902		$	3,681,346

As a percentage of total loan/lease portfolio		99.41	%		0.34	%		0.04	%		0.00	%		0.21	%		100.00	%


	2018
										Accruing Past
				30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases	Current			Past Due			Past Due			More			Loans/Leases			Total
	(dollars in thousands)

C&I	$	1,423,406		$	930		$	597		$	389		$	4,088		$	1,429,410
CRE
Owner-Occupied CRE		500,138			—			193			107			216			500,654
Commercial Construction, Land Development, and Other Land		234,704			1,764			—			—			319			236,787
Other Non Owner-Occupied CRE		1,022,664			484			—			—			5,522			1,028,670
Direct Financing Leases		114,078			1,642			488			—			1,761			117,969
Residential Real Estate		284,844			3,877			206			89			1,743			290,759
Installment and Other Consumer		118,343			356			24			47			611			119,381
	$	3,698,177		$	9,053		$	1,508		$	632		$	14,260		$	3,723,630

As a percentage of total loan/lease portfolio		99.32	%		0.24	%		0.04	%		0.02	%		0.38	%		100.00	%

Note 4. Loans/Leases Receivable (continued)

NPLs by classes of loans/leases as of December 31, 2019 and 2018 is presented as follows:


	2019
	Accruing Past
	Due 90 Days or		Nonaccrual						Percentage of
Classes of Loans/Leases	More		Loans/Leases*		Accruing TDRs		Total NPLs		Total NPLs
	(dollars in thousands)

C&I	$	—	$	1,236	$	646	$	1,882	21.12	%
CRE
Owner-Occupied CRE		—		34		—		34	0.38	%
Commercial Construction, Land Development, and Other Land		—		—		—		—	-	%
Other Non Owner-Occupied CRE		—		3,853		—		3,853	43.22	%
Direct Financing Leases		—		1,517		333		1,850	20.75	%
Residential Real Estate		—		706		—		706	7.92	%
Installment and Other Consumer		33		556		—		589	6.61	%
	$	33	$	7,902	$	979	$	8,914	100.00	%

* At December 31, 2019, nonaccrual loans/leases included $747 thousand of TDRs, including $98 thousand in C&I loans, $269 thousand in CRE loans, $294 thousand in direct financing leases, $31 thousand in residential real estate loans, and $55 thousand in installment loans.


	2018
	Accruing Past
	Due 90 Days or		Nonaccrual						Percentage of
Classes of Loans/Leases	More*		Loans/Leases **		Accruing TDRs *		Total NPLs		Total NPLs
		(dollars in thousands)

C&I	$	389	$	4,088	$	454	$	4,931	26.58	%
CRE
Owner-Occupied CRE		107		216		—		323	1.74	%
Commercial Construction, Land Development, and Other Land		—		319		—		319	1.72	%
Other Non Owner-Occupied CRE		—		5,522		2,985		8,507	45.86	%
Direct Financing Leases		—		1,761		111		1,872	10.09	%
Residential Real Estate		89		1,743		100		1,932	10.41	%
Installment and Other Consumer		47		611		9		667	3.60	%
	$	632	$	14,260	$	3,659	$	18,551	100.00	%

* At December 31, 2018 accruing past due 90 days or more included $496 thousand of TDRs, including $389 thousand in C&I loans and $107

thousand in CRE loans.

** At December 31, 2018, nonaccrual loans/leases included $2.3 million of TDRs, including $265 thousand in C&I loans, $1.4 million in CRE loans, $321 thousand in direct financing leases, $344 thousand in residential real estate loans, and $3 thousand in installment loans.

Note 4. Loans/Leases Receivable (continued)

Changes in the allowance by portfolio segment for the years ended December 31, 2019, 2018, and 2017 are presented as follows:


	Year Ended December 31, 2019
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		Other Consumer		Total
	(dollars in thousands)

Balance, beginning	$	16,420	$	17,719	$	1,792	$	2,557	$	1,359	$	39,847
Reclassification of allowance related to held for sale loans		(2,814)		(2,392)		—		(628)		(288)		(6,122)
Provisions charged to expense *		3,666		1,566		1,129		163		114		6,638
Loans/leases charged off		(1,476)		(1,722)		(1,647)		(191)		(98)		(5,134)
Recoveries on loans/leases previously charged off		276		208		190		47		51		772
Balance, ending	$	16,072	$	15,379	$	1,464	$	1,948	$	1,138	$	36,001

*Excludes provision related to loans included in assets held for sale during the year of $428 thousand for the year ending December 31, 2019.


	Year Ended December 31, 2018
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		Other Consumer		Total
	(dollars in thousands)

Balance, beginning	$	14,323	$	13,963	$	2,382	$	2,466	$	1,222	$	34,356
Provisions charged to expense		7,161		4,094		1,068		193		142		12,658
Loans/leases charged off		(5,359)		(387)		(2,002)		(127)		(44)		(7,919)
Recoveries on loans/leases previously charged off		295		49		344		25		39		752
Balance, ending	$	16,420	$	17,719	$	1,792	$	2,557	$	1,359	$	39,847


	Year Ended December 31, 2017
					Direct Financing		Residential Real		Installment and
	C&I		CRE		Leases		Estate		Other Consumer		Total
	(dollars in thousands)

Balance, beginning	$	12,545	$	11,671	$	3,112	$	2,342	$	1,087	$	30,757
Provisions charged to expense		2,736		4,044		1,370		197		123		8,470
Loans/leases charged off		(1,150)		(1,795)		(2,285)		(102)		(41)		(5,373)
Recoveries on loans/leases previously charged off		192		43		185		29		53		502
Balance, ending	$	14,323	$	13,963	$	2,382	$	2,466	$	1,222	$	34,356

Note 4. Loans/Leases Receivable (continued):

The allowance by impairment evaluation and by portfolio segment as of December 31, 2019 and 2018 is presented as follows:


	2019
							Direct Financing			Residential Real			Installment and
	C&I			CRE			Leases			Estate			Other Consumer			Total
	(dollars in thousands)

Allowance for impaired loans/leases	$	170		$	125		$	270		$	15		$	80		$	660
Allowance for nonimpaired loans/leases		15,902			15,254			1,194			1,933			1,058			35,341
	$	16,072		$	15,379		$	1,464		$	1,948		$	1,138		$	36,001

Impaired loans/leases	$	1,846		$	3,585		$	2,025		$	649		$	556		$	8,661
Nonimpaired loans/leases		1,505,979			1,732,811			85,844			239,255			108,796			3,672,685
	$	1,507,825		$	1,736,396		$	87,869		$	239,904		$	109,352		$	3,681,346

Allowance as a percentage of impaired loans/leases		9.21	%		3.49	%		13.33	%		2.31	%		14.39	%		7.62	%
Allowance as a percentage of nonimpaired loans/leases		1.06	%		0.88	%		1.39	%		0.81	%		0.97	%		0.96	%
Total allowance as a percentage of total loans/leases		1.07	%		0.89	%		1.67	%		0.81	%		1.04	%		0.98	%


	2018
							Direct Financing			Residential Real			Installment and
	C&I			CRE			Leases			Estate			Other Consumer			Total
	(dollars in thousands)

Allowance for impaired loans/leases	$	973		$	2,124		$	194		$	257		$	111		$	3,659
Allowance for nonimpaired loans/leases		15,447			15,595			1,598			2,300			1,248			36,188
	$	16,420		$	17,719		$	1,792		$	2,557		$	1,359		$	39,847

Impaired loans/leases	$	4,499		$	10,447		$	2,249		$	2,110		$	898		$	20,203
Nonimpaired loans/leases		1,424,911			1,755,664			115,720			288,649			118,483			3,703,427
	$	1,429,410		$	1,766,111		$	117,969		$	290,759		$	119,381		$	3,723,630

Allowance as a percentage of impaired loans/leases		21.62	%		20.33	%		8.63	%		12.18	%		12.38	%		18.11	%
Allowance as a percentage of nonimpaired loans/leases		1.08	%		0.89	%		1.38	%		0.80	%		1.05	%		0.98	%
Total allowance as a percentage of total loans/leases		1.15	%		1.00	%		1.52	%		0.88	%		1.14	%		1.07	%

Note 4. Loans/Leases Receivable (continued)

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the years ended December 31, 2019, 2018, and 2017 are presented below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs.


	2019

											Interest Income
							Average				Recognized for
	Recorded		Unpaid Principal		Related		Recorded		Interest Income		Cash Payments
Classes of Loans/Leases	Investment		Balance		Allowance		Investment		Recognized		Received
	(dollars in thousands)

Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	1,607	$	1,647	$	—	$	970	$	27	$	27
CRE
Owner-Occupied CRE		34		50		—		24		—		—
Commercial Construction, Land Development, and Other Land		—		—		—		—		—		—
Other Non Owner-Occupied CRE		684		686		—		738		29		29
Direct Financing Leases		1,642		1,642		—		1,322		30		30
Residential Real Estate		469		614		—		481		—		—
Installment and Other Consumer		476		476		—		474		—		—
	$	4,912	$	5,115	$	—	$	4,009	$	86	$	86

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	239	$	239	$	170	$	124	$	—	$	—
CRE
Owner-Occupied CRE		—		—		—		—		—		—
Commercial Construction, Land Development, and Other Land		—		—		—		—		—		—
Other Non Owner-Occupied CRE		2,867		2,867		125		1,958		—		—
Direct Financing Leases		383		383		270		196		2		2
Residential Real Estate		180		180		15		72		—		—
Installment and Other Consumer		80		80		80		62		—		—
	$	3,749	$	3,749	$	660	$	2,412	$	2	$	2

Total Impaired Loans/Leases:
C&I	$	1,846	$	1,886	$	170	$	1,094	$	27	$	27
CRE
Owner-Occupied CRE		34		50		—		24		—		—
Commercial Construction, Land Development, and Other Land		—		—		—		—		—		—
Other Non Owner-Occupied CRE		3,551		3,553		125		2,696		29		29
Direct Financing Leases		2,025		2,025		270		1,518		32		32
Residential Real Estate		649		794		15		553		—		—
Installment and Other Consumer		556		556		80		536		—		—
	$	8,661	$	8,864	$	660	$	6,421	$	88	$	88

Note 4. Loans/Leases Receivable (continued)


	2018

											Interest Income
							Average				Recognized for
	Recorded		Unpaid Principal		Related		Recorded		Interest Income		Cash Payments
Classes of Loans/Leases	Investment		Balance		Allowance		Investment		Recognized		Received
	(dollars in thousands)

Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	1,846	$	4,540	$	—	$	2,346	$	210	$	210
CRE
Owner-Occupied CRE		106		106		—		107		—		—
Commercial Construction, Land Development, and Other Land		507		507		—		101		—		—
Other Non Owner-Occupied CRE		1,804		1,804		—		540		—		—
Direct Financing Leases		1,929		1,929		—		2,193		60		60
Residential Real Estate		984		1,058		—		723		9		9
Installment and Other Consumer		762		762		—		198		—		—
	$	7,938	$	10,706	$	—	$	6,208	$	279	$	279

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	2,653	$	2,653	$	973	$	1,118	$	43	$	43
CRE
Owner-Occupied CRE		304		660		39		177		—		—
Commercial Construction, Land Development, and Other Land		149		149		33		159		—		—
Other Non Owner-Occupied CRE		7,577		7,577		2,052		3,055		58		58
Direct Financing Leases		320		320		194		273		—		—
Residential Real Estate		1,126		1,126		257		553		12		12
Installment and Other Consumer		136		136		111		125		—		—
	$	12,265	$	12,621	$	3,659	$	5,460	$	113	$	113

Total Impaired Loans/Leases:
C&I	$	4,499	$	7,193	$	973	$	3,464	$	253	$	253
CRE
Owner-Occupied CRE		410		766		39		284		—		—
Commercial Construction, Land Development, and Other Land		656		656		33		260		—		—
Other Non Owner-Occupied CRE		9,381		9,381		2,052		3,595		58		58
Direct Financing Leases		2,249		2,249		194		2,466		60		60
Residential Real Estate		2,110		2,184		257		1,276		21		21
Installment and Other Consumer		898		898		111		323		—		—
	$	20,203	$	23,327	$	3,659	$	11,668	$	392	$	392

Note 4. Loans/Leases Receivable (continued)


	2017
											Interest Income
							Average				Recognized for
	Recorded		Unpaid Principal		Related		Recorded		Interest Income		Cash Payments
Classes of Loans/Leases	Investment		Balance		Allowance		Investment		Recognized		Received
	(dollars in thousands)

Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	1,634	$	1,645	$	—	$	1,406	$	71	$	71
CRE
Owner-Occupied CRE		289		289		—		79		12		12
Commercial Construction, Land Development, and Other Land		—		—		—		—		—		—
Other Non Owner-Occupied CRE		1,172		1,172		—		1,177		—		—
Direct Financing Leases		2,945		2,945		—		2,880		132		132
Residential Real Estate		943		1,018		—		686		1		1
Installment and Other Consumer		134		134		—		126		—		—
	$	7,117	$	7,203	$	—	$	6,354	$	216	$	216

Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,615	$	4,618	$	716	$	4,584	$	203	$	203
CRE
Owner-Occupied CRE		152		152		48		221		—		—
Commercial Construction, Land Development, and Other Land		4,844		4,844		1,379		4,448		—		—
Other Non Owner-Occupied CRE		72		72		2		45		—		—
Direct Financing Leases		725		725		504		625		—		—
Residential Real Estate		761		761		355		549		15		15
Installment and Other Consumer		68		68		39		41		1		1
	$	11,237	$	11,240	$	3,043	$	10,513	$	219	$	219

Total Impaired Loans/Leases:
C&I	$	6,249	$	6,263	$	716	$	5,990	$	274	$	274
CRE
Owner-Occupied CRE		441		441		48		300		12		12
Commercial Construction, Land Development, and Other Land		4,844		4,844		1,379		4,448		—		—
Other Non Owner-Occupied CRE		1,244		1,244		2		1,222		—		—
Direct Financing Leases		3,670		3,670		504		3,505		132		132
Residential Real Estate		1,704		1,779		355		1,235		16		16
Installment and Other Consumer		202		202		39		167		1		1
	$	18,354	$	18,443	$	3,043	$	16,867	$	435	$	435

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

For C&I and CRE loans, the Company’s credit quality indicator is internally assigned risk ratings. Each commercial loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. See Note 1 for further discussion on the Company’s risk ratings.

Note 4. Loans/Leases Receivable (continued)

For C&I equipment financing loans, direct financing leases, residential real estate loans, and installment and other consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of December 31, 2019 and 2018:


	2019
			CRE
					Non-Owner Occupied
					Commercial
					Construction,
					Land
			Owner-Occupied		Development,						As a % of
Internally Assigned Risk Rating	C&I		CRE		and Other Land		Other CRE		Total		Total
	(dollars in thousands)

Pass (Ratings 1 through 5)	$	1,334,446	$	439,418	$	378,572	$	896,206	$	3,048,642	98.28	%
Special Mention (Rating 6)		12,962		3,044		41		3,905		19,952	0.64	%
Substandard (Rating 7)		18,439		1,527		184		13,499		33,649	1.08	%
Doubtful (Rating 8)		—		—		—		—		—	—	%
	$	1,365,847	$	443,989	$	378,797	$	913,610	$	3,102,243	100.00	%


	2019
			Direct Financing		Residential Real		Installment and				As a % of
Delinquency Status *	C&I		Leases		Estate		Other Consumer		Total		Total
	(dollars in thousands)

Performing	$	140,992	$	86,019	$	239,198	$	108,763	$	574,972	99.29	%
Nonperforming		986		1,850		706		589		4,131	0.71	%
	$	141,978	$	87,869	$	239,904	$	109,352	$	579,103	100.00	%


	2018
			CRE
					Non-Owner Occupied
					Commercial
					Construction,
					Land
			Owner-Occupied		Development,						As a % of
Internally Assigned Risk Rating	C&I		CRE		and Other Land		Other CRE		Total		Total
	(dollars in thousands)

Pass (Ratings 1 through 5)	$	1,294,418	$	487,949	$	230,473	$	1,008,626	$	3,021,466	97.72	%
Special Mention (Rating 6)		23,302		9,599		3,848		5,309		42,058	1.36	%
Substandard (Rating 7)		8,286		3,106		2,466		14,735		28,593	0.92	%
Doubtful (Rating 8)		—		—		—		—		—	—	%
	$	1,326,006	$	500,654	$	236,787	$	1,028,670	$	3,092,117	100.00	%


	2018
			Direct Financing		Residential Real		Installment and				As a % of
Delinquency Status *	C&I		Leases		Estate		Other Consumer		Total		Total
	(dollars in thousands)

Performing	$	102,713	$	116,097	$	288,827	$	118,714	$	626,351	99.18	%
Nonperforming		691		1,872		1,932		667		5,162	0.82	%
	$	103,404	$	117,969	$	290,759	$	119,381	$	631,513	100.00	%

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings.

Note 4. Loans/Leases Receivable (continued)

TDRs totaled $1.7 million and $6.5 million as of December 31, 2019 and 2018, respectively.

For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the years ended December 31, 2019 and 2018. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of restructuring. The specific allowance is as of December 31, 2019 and 2018, respectively. The following excludes any TDRs that were restructured and paid off or charged off in the same year.


	2019
		Pre-		Post-
		Modification		Modification
	Number of	Recorded		Recorded		Specific
Classes of Loans/Leases	Loans / Leases	Investment		Investment		Allowance
	(dollars in thousands)
CONCESSION - Significant Payment Delay
C&I	3	$	112	$	112	$	—
Direct Financing Leases	10		388		388		35
	13	$	500	$	500	$	35

CONCESSION - Foregiveness of Principal
C&I	1	$	587	$	537	$	—

CONCESSION - Extension of Maturity
Installment and Other Consumer	1	$	56	$	56	$	54

TOTAL	15	$	1,143	$	1,093	$	89


	2018
		Pre-		Post-
		Modification		Modification
	Number of	Recorded		Recorded		Specific
Classes of Loans/Leases	Loans/Leases	Investment		Investment		Allowance
	(dollars in thousands)
CONCESSION - Significant Payment Delay
C&I	5	$	426	$	426	$	250
Other Non Owner-Occupied CRE	1		500		500		60
Residential Real Estate	1		46		46		—
Direct Financing Leases	3		75		75		—
	10	$	1,047	$	1,047	$	310

CONCESSION - Extension of Maturity
Other Non Owner-Occupied CRE	2	$	2,976	$	2,976	$	1,492
Residential Real Estate	2	$	100	$	100	$	8
	4	$	3,076	$	3,076	$	1,500

TOTAL	14	$	4,123	$	4,123	$	1,810

Of the TDRs reported above, three with a post-modification recorded investment totaling $121 thousand were on nonaccrual as of December 31, 2019 and three with a post-modification recorded investment totaling $796 thousand were on nonaccrual as of December 31, 2018.

For the year ended December 31, 2019, the Company had two TDRs totaling $66 thousand that redefaulted within 12 months subsequent to restructure, where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status. For the year ended December 31, 2018, the Company had five TDRs totaling $399 thousand that redefaulted within 12 months subsequent to restructure, where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status.

Not included in the table above, the Company had one TDR that was restructured and charged off in 2019, totaling $52 thousand. There were 13 TDRs that were both restructured and charged off in 2018, totaling $896 thousand.

Note 4. Loans/Leases Receivable (continued)

Loans are made in the normal course of business to directors, executive officers, and their related interests. The terms of these loans, including interest rates and collateral, are similar to those prevailing for comparable transactions with other persons. An analysis of the changes in the aggregate committed amount of loans greater than or equal to $60,000 during the years ended December 31, 2019, 2018, and 2017, is as follows:


	2019		2018		2017
	(dollars in thousands)

Balance, beginning	$	125,496	$	66,442	$	61,609
Net increase (decrease) due to change in related parties		(12,161)		41,797		11,927
Advances		98,708		43,453		13,091
Repayments		(99,213)		(26,196)		(20,185)
Balance, ending	$	112,830	$	125,496	$	66,442

The Company’s loan portfolio includes a geographic concentration in the Midwest. Additionally, the loan portfolio includes a concentration of loans in certain industries as of December 31, 2019 and 2018 as follows:


	2019				2018
			Percentage of				Percentage of
			Total				Total
Industry Name	Balance		Loans/Leases		Balance		Loans/Leases
	(dollars in thousands)

Lessors of Residential Buildings	$	745,770	22	%	$	594,346	16	%
Lessors of Non-Residential Buildings		574,058	17	%		632,534	17	%
Administration of Urban Planning & Community & Rural Development		133,157	4	%		111,579	3	%
Bank Holding Companies		92,185	3	%		75,601	2	%

Concentrations within the leasing portfolio are monitored by equipment type – none of which represent a concentration within the total loans/leases portfolio. Within the leasing portfolio, diversification is spread among construction, manufacturing and the service industries. Geographically, the lease portfolio is diversified across all 50 states. No individual state represents a concentration within the total loan/lease portfolio.