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Loans and Loans Held for Sale
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
LOANS AND LOANS HELD FOR SALE
LOANS AND LOANS HELD FOR SALE
Loans are presented net of unearned income of $5.3 million and $5.2 million at December 31, 2018 and 2017 and net of a discount related to purchase accounting fair value adjustments of $3.3 million and $2.8 million at December 31, 2018 and December 31, 2017.
The following table indicates the composition of the acquired and originated loans as of the dates presented:
 
December 31,
(dollars in thousands)
2018
 
2017
Commercial
 
 
 
Commercial real estate
$
2,921,832

 
$
2,685,994

Commercial and industrial
1,493,416

 
1,433,266

Commercial construction
257,197

 
384,334

Total Commercial Loans
4,672,445

 
4,503,594

Consumer
 
 
 
Residential mortgage
726,679

 
698,774

Home equity
471,562

 
487,326

Installment and other consumer
67,546

 
67,204

Consumer construction
8,416

 
4,551

Total Consumer Loans
1,274,203

 
1,257,855

Total Portfolio Loans
5,946,648

 
5,761,449

Loans held for sale
2,371

 
4,485

Total Loans
$
5,949,019

 
$
5,765,934


As of December 31, 2018, our acquired loans from the Merger were $312.3 million including $180.4 million of CRE, $73.4 million of C&I, $6.6 million of commercial construction, $38.7 million of residential mortgage and $13.2 million of home equity, installment and other consumer construction. These acquired loans decreased from acquired loans at December 31, 2017 of $386.6 million, including $208.5 million of CRE, $92.2 million of C&I, $11.1 million of commercial construction, $57.5 million of residential mortgage, $17.3 million of home equity, installment and other consumer construction.
We attempt to limit our exposure to credit risk by diversifying our loan portfolio by segment, geography, collateral and industry and actively managing concentrations. When concentrations exist in certain segments, we mitigate this risk by reviewing the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 79 percent of total portfolio loans at December 31, 2018 and 78 percent at December 31, 2017. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.2 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2018 and comprised $3.1 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2017. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of 14 percent of both total CRE and Commercial Construction loans at either December 31, 2018 or December 31, 2017.
Our customers are primarily in Pennsylvania and the contiguous states of Ohio, West Virginia, New York, Maryland and Delaware. The majority of our commercial and consumer loans are made to businesses and individuals in these states, resulting in a geographic concentration. We believe our knowledge and familiarity with customers and conditions locally outweighs this geographic concentration risk. The conditions of the local and regional economies are monitored closely through publicly available data and information supplied by our customers. Our CRE and Commercial Construction portfolios have out-of-market exposure of 5.4 percent of their combined portfolios and 2.9 percent of total portfolio loans at December 31, 2018 and 5.2 percent of their combined portfolios and 2.8 percent of total portfolio loans at December 31, 2017.
The following table summarizes our restructured loans as of the dates presented:
 
December 31, 2018
 
December 31, 2017
(dollars in thousands)
Performing
TDRs

 
Nonperforming
TDRs

 
Total
TDRs

 
Performing
TDRs

 
Nonperforming
TDRs

 
Total
TDRs

Commercial real estate
$
2,054

 
$
1,139

 
$
3,193

 
$
2,579

 
$
967

 
$
3,546

Commercial and industrial
7,026

 
6,646

 
13,672

 
3,946

 
3,197

 
7,143

Commercial construction
1,912

 
406

 
2,318

 
2,420

 
2,413

 
4,833

Residential mortgage
2,214

 
1,543

 
3,757

 
2,039

 
3,585

 
5,624

Home equity
3,568

 
1,349

 
4,917

 
3,885

 
979

 
4,864

Installment and other consumer
12

 
5

 
17

 
32

 
9

 
41

Total
$
16,786

 
$
11,088

 
$
27,874

 
$
14,901

 
$
11,150

 
$
26,051


The following tables present the restructured loans by loan segment and by type of concession for the years ended December 31:
 
2018
 
2017
(dollars in thousands)
Number of
Loans

 
Pre-Modification
Outstanding
Recorded
Investment(1)

 
Post-Modification
Outstanding
Recorded
Investment(1)

 
Total
Difference
in Recorded
Investment

 
Number of
Loans

 
Pre-Modification
Outstanding
Recorded
Investment(1)

 
Post-Modification
Outstanding
Recorded
Investment(1)

 
Total
Difference
in Recorded
Investment

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date extension
1

 
$
256

 
$
179

 
$
(77
)
 
1

 
$
400

 
$
398

 
$
(2
)
Principal deferral
1

 
90

 
90

 
—

 
—

 
—

 
—

 
—

Total Commercial Real Estate
2

 
346

 
269

 
(77
)
 
1

 
400

 
398

 
(2
)
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date extension
2

 
768

 
166

 
(602
)
 
1

 
274

 
777

 
503

Maturity date extension and interest rate reduction
—

 
—

 
—

 
—

 
2

 
1,800

 
1,805

 
5

Principal deferral and maturity date extension
6

 
5,355

 
5,341

 
(14
)
 
—

 
—

 
—

 
—

Principal deferral
4

 
4,815

 
4,383

 
(432
)
 
2

 
113

 
113

 
—

Total Commercial and Industrial
12

 
10,938

 
9,890

 
(1,048
)
 
5

 
2,187

 
2,695

 
508

Commercial construction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal forgiveness
—

 
—

 
—

 
—

 
2

 
1,996

 
1,996

 
—

Total Commercial Construction
—

 
—

 
—

 
—

 
2

 
1,996

 
1,996

 
—

Residential mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 7 bankruptcy(2)
5

 
387

 
374

 
(13
)
 
1

 
33

 
31

 
(2
)
Total Residential Mortgage
5

 
387

 
374

 
(13
)
 
1

 
33

 
31

 
(2
)
Home equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 7 bankruptcy(2)
22

 
811

 
681

 
(130
)
 
21

 
689

 
643

 
(46
)
Interest rate reduction
1

 
120

 
120

 
—

 
—

 
—

 
—

 
—

Maturity date extension
—

 
—

 
—

 
—

 
1

 
231

 
231

 
—

Maturity date extension and interest rate reduction
2

 
47

 
46

 
(1
)
 
1

 
173

 
113

 
(60
)
Total Home Equity
25

 
978

 
847

 
(131
)
 
23

 
1,093

 
987

 
(106
)
Installment and other consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 7 bankruptcy(2)
2

 
23

 
4

 
(19
)
 
4

 
48

 
35

 
(13
)
Total Installment and Other Consumer
2

 
23

 
4

 
(19
)
 
4

 
48

 
35

 
(13
)
Total by Concession Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Chapter 7 bankruptcy(2)
29

 
$
1,221

 
$
1,059

 
$
(162
)
 
26

 
$
770

 
$
709

 
$
(61
)
Interest rate reduction
1

 
120

 
120

 
—

 
—

 
—

 
—

 
—

Maturity date extension
3

 
1,024

 
345

 
(679
)
 
3

 
905

 
1,406

 
501

Maturity date extension and interest rate reduction
2

 
47

 
46

 
(1
)
 
3

 
1,973

 
1,918

 
(55
)
Principal deferral and maturity date extension
6

 
5,355

 
5,341

 
(14
)
 
—

 
—

 
—

 
—

Principal deferral
5

 
4,905

 
4,473

 
(432
)
 
2

 
113

 
113

 
—

Principal forgiveness
—

 
—

 
—

 
—

 
2

 
1,996

 
1,996

 
—

Total
46

 
$
12,672

 
$
11,384

 
$
(1,288
)
 
36

 
$
5,757

 
$
6,142

 
$
385

(1)Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end.
(2)Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.

We have six commitments for $11.6 million to lend additional funds on TDRs at December 31, 2018. We had no TDRs that returned to accruing status during 2018. We returned one TDRs to accruing status during 2017 for $2.0 million.
Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. There were four TDRs totaling $4.4 million that defaulted during the year ended December 31, 2018 and no TDRs that defaulted during 2017 that were restructured within the last 12 months prior to defaulting.
The following table is a summary of nonperforming assets as of the dates presented:
 
December 31,
(dollars in thousands)
2018
 
2017
Nonperforming Assets
 
 
 
Nonaccrual loans
$
34,985

 
$
12,788

Nonaccrual TDRs
11,088

 
11,150

Total nonaccrual loans
46,073

 
23,938

OREO
3,092

 
469

Total Nonperforming Assets
$
49,165

 
$
24,407


NPAs increased $24.8 million to $49.2 million during 2018 compared to $24.4 million for the year ended 2017. The increase is primarily related to three large commercial nonperforming, impaired loans of $23.6 million that experienced financial deterioration during the fourth quarter of 2018. Other real estate owned, or OREO, increased $2.6 million since December 31, 2017. The $2.5 million increase in OREO relates to two lots of land that were being held with the intention to build future branches. This is no longer the intention with these properties. This land lot was reclassified from other assets to OREO during the first quarter of 2018.
The following table presents a summary of the aggregate amount of loans to certain officers, directors of S&T or any affiliates of such persons as of December 31:
(dollars in thousands)
2018
 
2017
Balance at beginning of year
$
10,070

 
$
25,167

New loans
2,841

 
25,203

Repayments or no longer considered a related party
(4,229
)
 
(40,300
)
 
$
8,682

 
$
10,070