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Loans and Loans Held for Sale
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
LOANS AND LOANS HELD FOR SALE LOANS AND LOANS HELD FOR SALE
Loans are presented net of unearned income of $4.6 million and $5.3 million at December 31, 2019 and 2018 and net of a discount related to purchase accounting fair value adjustments of $12.3 million and $3.3 million at December 31, 2019 and December 31, 2018.
The following table summarizes the composition of originated and acquired loans as of the dates presented:
 
December 31,
(dollars in thousands)
2019
 
2018
Commercial
 
 
 
Commercial real estate
$
3,416,518

 
$
2,921,832

Commercial and industrial
1,720,833

 
1,493,416

Commercial construction
375,445

 
257,197

Total Commercial Loans
5,512,796

 
4,672,445

Consumer
 
 
 
Residential mortgage
998,585

 
726,679

Home equity
538,348

 
471,562

Installment and other consumer
79,033

 
67,546

Consumer construction
8,390

 
8,416

Total Consumer Loans
1,624,356

 
1,274,203

Total Portfolio Loans
7,137,152

 
5,946,648

Loans held for sale
5,256

 
2,371

Total Loans
$
7,142,408

 
$
5,949,019


As of December 31, 2019 our acquired portfolio loans from the DNB merger were $899.3 million including $455.6 million of CRE, $85.4 million of C&I, $77.1 million of commercial construction, $219.7 million of residential mortgage, $56.4 million of home equity, $4.1 million of installment and other and $1.0 million of 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 77 percent of total portfolio loans at December 31, 2019 and 79 percent at December 31, 2018. Within our commercial portfolio, the CRE and Commercial Construction portfolios combined comprised $3.8 billion or 69 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2019 and comprised $3.2 billion or 68 percent of total commercial loans and 53 percent of total portfolio loans at December 31, 2018. Further segmentation of the CRE and Commercial Construction portfolios by collateral type reveals no concentration in excess of 11 percent of both total CRE and Commercial Construction loans at December 31, 2019 and 14 percent at December 31, 2018.
We lend primarily in Pennsylvania and the contiguous states of Ohio, New York, West Virginia and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this geography, resulting in a 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. We also use subscription services for additional geographic and industry specific information. Our CRE and Commercial Construction portfolios have exposure outside this geography of 5.4 percent of the combined portfolios and 2.9 percent of total portfolio loans at both December 31, 2019 and 2018.
The following table summarizes our restructured loans as of the dates presented:
 
December 31, 2019
 
December 31, 2018
(dollars in thousands)
Performing
TDRs

 
Nonperforming
TDRs

 
Total
TDRs

 
Performing
TDRs

 
Nonperforming
TDRs

 
Total
TDRs

Commercial real estate
$
22,233

 
$
6,713

 
$
28,946

 
$
2,054

 
$
1,139

 
$
3,193

Commercial and industrial
6,909

 
695

 
7,604

 
7,026

 
6,646

 
13,672

Commercial construction
1,425

 
—

 
1,425

 
1,912

 
406

 
2,318

Residential mortgage
2,013

 
822

 
2,835

 
2,214

 
1,543

 
3,757

Home equity
4,371

 
678

 
5,049

 
3,568

 
1,349

 
4,917

Installment and other consumer
9

 
4

 
13

 
12

 
5

 
17

Total
$
36,960

 
$
8,912

 
$
45,872

 
$
16,786

 
$
11,088

 
$
27,874


The significant increase in performing TDRs in 2019 primarily related to a $20.2 million CRE relationship that was modified during the third quarter of 2019. The modification granted a concession to the borrower that reduced their monthly payments resulting in the TDR. The loan remains in performing status based on the strong historical repayment performance of the borrower prior to the restructure as well as recent changes occurring in the business which demonstrate the borrower’s ability to pay under the revised contractual terms. Guarantor support and sufficient collateral value further support the performing status of the loan.
The following tables present the restructured loans by loan segment and by type of concession for the years ended December 31:
 
2019
 
2018
(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

Totals by Loan Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date extension
—

 
$
—

 
$
—

 
$
—

 
1

 
$
256

 
$
179

 
$
(77
)
Maturity date extension and interest rate reduction
1

 
150

 
145

 
(6
)
 
—

 
—

 
—

 
—

Principal deferral
3

 
23,517

 
23,059

 
(458
)
 
1

 
90

 
90

 
—

Principal deferral and maturity date extension
1

 
436

 
436

 
—

 
—

 
—

 
—

 
—

Below market interest rate
2

 
569

 
1,519

 
950

 
—

 
—

 
—

 
—

Total Commercial Real Estate
7

 
24,672

 
25,159

 
486

 
2

 
346

 
269

 
(77
)
Commercial and Industrial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date extension
—

 
—

 
—

 
—

 
2

 
768

 
166

 
(602
)
Maturity date extension and interest rate reduction
1

 
4,751

 
4,136

 
(616
)
 
—

 
—

 
—

 
—

Principal deferral
1

 
1,250

 
1,250

 
—

 
4

 
4,815

 
4,383

 
(432
)
Principal deferral and maturity date extension
1

 
292

 
275

 
(17
)
 
6

 
5,355

 
5,341

 
(14
)
Total Commercial and Industrial
3

 
6,294

 
5,661

 
(633
)
 
12

 
10,938

 
9,890

 
(1,048
)
Residential Mortgage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal deferral and maturity date extension
3

 
183

 
183

 
—

 
—

 
—

 
—

 
—

Consumer bankruptcy(2)
3

 
165

 
157

 
(9
)
 
5

 
387

 
374

 
(13
)
Total Residential Mortgage
6

 
348

 
340

 
(9
)
 
5

 
387

 
374

 
(13
)
Home equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date extension and interest rate reduction
—

 
—

 
—

 
—

 
2

 
47

 
46

 
(1
)
Principal deferral and maturity date extension
2

 
39

 
39

 
—

 
—

 
—

 
—

 
—

Interest rate reduction
2

 
190

 
188

 
(2
)
 
1

 
120

 
120

 
—

Consumer bankruptcy(2)
29

 
886

 
810

 
(77
)
 
22

 
811

 
681

 
(130
)
Total Home Equity
33

 
1,116

 
1,037

 
(79
)
 
25

 
978

 
847

 
(131
)
Installment and Other Consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer bankruptcy(2)
4

 
16

 
11

 
(5
)
 
2

 
23

 
4

 
(19
)
Total Installment and Other Consumer
4

 
$
16

 
$
11

 
$
(5
)
 
2

 
$
23

 
$
4

 
$
(19
)
Totals by Concession Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date extension
—

 
$
—

 
$
—

 
$
—

 
3

 
$
1,024

 
$
345

 
$
(679
)
Maturity date extension and interest rate reduction
2

 
4,902


4,280

 
(622
)
 
2

 
47

 
46

 
(1
)
Principal deferral
4


24,767


24,309

 
(458
)
 
5

 
4,905

 
4,473

 
(432
)
Principal deferral and maturity date extension
7

 
950


933

 
(17
)
 
6

 
5,355

 
5,341

 
$
(14
)
Interest rate reduction
2

 
190

 
188

 
(2
)
 
1

 
120

 
120

 
—

Below market interest rate
2

 
569

 
1,519

 
950

 
—

 
—

 
—

 
—

Consumer bankruptcy(2)
36

 
1,068


977

 
(91
)
 
29

 
1,221

 
1,059

 
$
(162
)
Total
53

 
$
32,446


$
32,206

 
$
(240
)
 
46

 
$
12,672

 
$
11,384

 
$
(1,288
)
(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) Consumer bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.



We had 24 commitments for $4.6 million to lend additional funds on TDRs at December 31, 2019 compared to six commitments for $11.6 million at December 31, 2018. We had six TDRs with a total loan balance of $0.5 million that were returned to accruing status during 2019. We returned no TDRs to accruing status during 2018.
Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. There were no TDRs that defaulted during the year ended December 31, 2019 and four TDRs that defaulted during 2018 totaling $4.4 million 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)
2019
 
2018
Nonperforming Assets
 
 
 
Nonaccrual loans
$
45,145

 
$
34,985

Nonaccrual TDRs
8,912

 
11,088

Total nonaccrual loans
54,057

 
46,073

OREO
3,525

 
3,092

Total Nonperforming Assets
$
57,582

 
$
49,165


NPAs increased $8.4 million to $57.6 million during 2019 compared to $49.2 million for the year ended 2018. The increase is primarily related to one commercial and industrial nonperforming, impaired loan relationship of $10.0 million that experienced deterioration during the fourth quarter of 2019.
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)
2019
 
2018
Balance at beginning of year
$
8,682

 
$
10,070

New loans
2,442

 
2,841

Repayments or no longer considered a related party
(2,899
)
 
(4,229
)
Balance at end of year
$
8,225

 
$
8,682