Loans and Leases

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Loans and Leases

Loans and Leases

The loan and lease portfolio consists of loans and leases originated by the Corporation, as well as loans acquired in prior acquisitions. Certain tables in this footnote are presented with a breakdown between originated and acquired loans and leases.

A. The table below detailsportfolio loans and leases as of the dates indicated:

	March 31, 2019						December 31, 2018
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
Loans held for sale	$	2,884	$	—	$	2,884	$	1,749	$	—	$	1,749
Real Estate Loans:
Commercial mortgage	$	1,436,611	$	310,084	$	1,746,695	$	1,327,822	$	329,614	$	1,657,436
Home equity lines and loans	180,075		24,716		204,791		181,506		25,845		207,351
Residential mortgage	423,638		78,741		502,379		411,022		83,333		494,355
Construction	157,572		2,189		159,761		174,592		6,486		181,078
Total real estate loans	$	2,197,896	$	415,730	$	2,613,626	$	2,094,942	$	445,278	$	2,540,220
Commercial and industrial	651,204		54,497		705,701		624,643		70,941		695,584
Consumer	45,229		2,592		47,821		44,099		2,715		46,814
Leases	137,941		18,425		156,366		121,567		22,969		144,536
Total portfolio loans and leases	$	3,032,270	$	491,244	$	3,523,514	$	2,885,251	$	541,903	$	3,427,154
Total loans and leases	$	3,035,154	$	491,244	$	3,526,398	$	2,887,000	$	541,903	$	3,428,903
Loans with fixed rates	$	1,252,613	$	288,679	$	1,541,292	$	1,204,070	$	323,604	$	1,527,674
Loans with adjustable or floating rates	1,782,541		202,565		1,985,106		1,682,930		218,299		1,901,229
Total loans and leases	$	3,035,154	$	491,244	$	3,526,398	$	2,887,000	$	541,903	$	3,428,903
Net deferred loan origination fees included in the above loan table	$	750	$	—	$	750	$	2,226	$	—	$	2,226

B. Components of the net investment in leases are detailed as follows:

	March 31, 2019									December 31, 2018
(dollars in thousands)	Originated			Acquired			Total Leases			Originated			Acquired			Total Leases
Minimum lease payments receivable	$	153,559		$	20,244		$	173,803		$	135,313		$	25,372		$	160,685
Unearned lease income	(21,737		)	(2,270		)	(24,007		)	(19,388		)	(3,005		)	(22,393		)
Initial direct costs and deferred fees	6,119			451			6,570			5,642			602			6,244
Total Leases	$	137,941		$	18,425		$	156,366		$	121,567		$	22,969		$	144,536

C. Non-Performing Loans and Leases

	March 31, 2019						December 31, 2018
(dollars in thousands)	Originated		Acquired		Total Loans and Leases		Originated		Acquired		Total Loans and Leases
Commercial mortgage	$	3,458	$	2,100	$	5,558	$	435	$	2,133	$	2,568
Home equity lines and loans	6,878		26		6,904		3,590		26		3,616
Residential mortgage	2,293		570		2,863		2,813		639		3,452
Commercial and industrial	2,657		308		2,965		1,786		315		2,101
Consumer	36		44		80		45		63		108
Leases	429		484		913		392		583		975
Total non-performing loans and leases	$	15,751	$	3,532	$	19,283	$	9,061	$	3,759	$	12,820

D. Purchased Credit-Impaired Loans

The outstanding principal balance and related carrying amount of purchased credit-impaired loans, for which the Corporation applies ASC 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality, to account for the interest earned, as of the dates indicated, are as follows:

(dollars in thousands)	March 31, 2019		December 31, 2018
Outstanding principal balance	$	15,845	$	17,904
Carrying amount	$	11,553	$	12,304

The following table presents changes in the accretable discount on purchased credit-impaired loans, for which the Corporation applies ASC 310-30, for the three months ended March 31, 2019: 

(dollars in thousands)	Accretable Discount
Balance, December 31, 2018	$	2,697
Accretion	(247		)
Reclassifications from nonaccretable difference	76
Additions/adjustments	—
Disposals	(108		)
Balance, March 31, 2019	$	2,418

E. Age Analysis of Past Due Loans and Leases

The following tables present an aging of all portfolio loans and leases as of the dates indicated:

	Accruing Loans and Leases
As of March 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
Commercial mortgage	$	1,106	$	—	$	—	$	1,106	$	1,740,031	$	1,741,137	$	5,558	$	1,746,695
Home equity lines and loans	376		144		—		520		197,367		197,887		6,904		204,791
Residential mortgage	2,357		320		—		2,677		496,839		499,516		2,863		502,379
Construction	—		—		—		—		159,761		159,761		—		159,761
Commercial and industrial	749		15		—		764		701,972		702,736		2,965		705,701
Consumer	64		64		—		128		47,613		47,741		80		47,821
Leases	971		265		—		1,236		154,217		155,453		913		156,366
Total portfolio loans and leases	$	5,623	$	808	$	—	$	6,431	$	3,497,800	$	3,504,231	$	19,283	$	3,523,514

	Accruing Loans and Leases
As of December 31, 2018	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current(1)		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
Commercial mortgage	$	821	$	251	$	—	$	1,072	$	1,653,796	$	1,654,868	$	2,568	$	1,657,436
Home equity lines and loans	92		—		—		92		203,643		203,735		3,616		207,351
Residential mortgage	2,330		218		—		2,548		488,355		490,903		3,452		494,355
Construction	—		—		—		—		181,078		181,078		—		181,078
Commercial and industrial	280		332		—		612		692,871		693,483		2,101		695,584
Consumer	35		5		—		40		46,666		46,706		108		46,814
Leases	641		460		—		1,101		142,460		143,561		975		144,536
Total portfolio loans and leases	$	4,199	$	1,266	$	—	$	5,465	$	3,408,869	$	3,414,334	$	12,820	$	3,427,154

(1) Included as “current” are $3.2 million of loans and leases as of December 31, 2018 which were classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent.

The following tables present an aging of originated portfolio loans and leases as of the dates indicated:

	Accruing Loans and Leases
As of March 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
Commercial mortgage	$	1,106	$	—	$	—	$	1,106	$	1,432,047	$	1,433,153	$	3,458	$	1,436,611
Home equity lines and loans	231		144		—		375		172,822		173,197		6,878		180,075
Residential mortgage	1,735		233		—		1,968		419,377		421,345		2,293		423,638
Construction	—		—		—		—		157,572		157,572		—		157,572
Commercial and industrial	520		15		—		535		648,012		648,547		2,657		651,204
Consumer	25		64		—		89		45,104		45,193		36		45,229
Leases	695		206		—		901		136,611		137,512		429		137,941
Total originated portfolio loans and leases	$	4,312	$	662	$	—	$	4,974	$	3,011,545	$	3,016,519	$	15,751	$	3,032,270

	Accruing Loans and Leases
As of December 31, 2018	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current(1)		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
Commercial mortgage	$	816	$	251	$	—	$	1,067	$	1,326,320	$	1,327,387	$	435	$	1,327,822
Home equity lines and loans	25		—		—		25		177,891		177,916		3,590		181,506
Residential mortgage	1,545		—		—		1,545		406,664		408,209		2,813		411,022
Construction	—		—		—		—		174,592		174,592		—		174,592
Commercial and industrial	280		332		—		612		622,245		622,857		1,786		624,643
Consumer	35		5		—		40		44,014		44,054		45		44,099
Leases	350		233		—		583		120,592		121,175		392		121,567
Total originated portfolio loans and leases	$	3,051	$	821	$	—	$	3,872	$	2,872,318	$	2,876,190	$	9,061	$	2,885,251

(1) Included as “current” are $2.0 million of loans and leases as of December 31, 2018 which were classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent.

The following tables present an aging of acquired portfolio loans and leases as of the dates indicated:

	Accruing Loans and Leases
As of March 31, 2019	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
Commercial mortgage	$	—	$	—	$	—	$	—	$	307,984	$	307,984	$	2,100	$	310,084
Home equity lines and loans	145		—		—		145		24,545		24,690		26		24,716
Residential mortgage	622		87		—		709		77,462		78,171		570		78,741
Construction	—		—		—		—		2,189		2,189		—		2,189
Commercial and industrial	229		—		—		229		53,960		54,189		308		54,497
Consumer	39		—		—		39		2,509		2,548		44		2,592
Leases	276		59		—		335		17,606		17,941		484		18,425
Total acquired portfolio loans and leases	$	1,311	$	146	$	—	$	1,457	$	486,255	$	487,712	$	3,532	$	491,244

	Accruing Loans and Leases
As of December 31, 2018	30 – 59 Days Past Due		60 – 89 Days Past Due		Over 89 Days Past Due		Total Past Due		Current(1)		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases
(dollars in thousands)
Commercial mortgage	$	5	$	—	$	—	$	5	$	327,476	$	327,481	$	2,133	$	329,614
Home equity lines and loans	67		—		—		67		25,752		25,819		26		25,845
Residential mortgage	785		218		—		1,003		81,691		82,694		639		83,333
Construction	—		—		—		—		6,486		6,486		—		6,486
Commercial and industrial	—		—		—		—		70,626		70,626		315		70,941
Consumer	—		—		—		—		2,652		2,652		63		2,715
Leases	291		227		—		518		21,868		22,386		583		22,969
Total acquired portfolio loans and leases	$	1,148	$	445	$	—	$	1,593	$	536,551	$	538,144	$	3,759	$	541,903

(1) Included as “current” are $1.2 million of loans and leases as of December 31, 2018 which were classified as administratively delinquent. An administratively delinquent loan is one which has been approved for a renewal or extension but has not had all the required documents fully executed as of the reporting date. Management does not consider these loans to be delinquent.

F. Allowance for Loan and Lease Losses (the “Allowance”)

The following tables detail the roll-forward of the Allowance for the three months ended March 31, 2019 and 2018:

(dollars in thousands)	Commercial Mortgage			Home Equity Lines and Loans			Residential Mortgage			Construction			Commercial and Industrial			Consumer			Leases			Unallocated		Total
Balance, December 31, 2018	$	7,567		$	1,003		$	1,813		$	1,485		$	5,461		$	229		$	1,868		$	—	$	19,426
Charge-offs	(1,388		)	(47		)	(331		)	—			(405		)	(105		)	(568		)	—		(2,844		)
Recoveries	15			1			1			1			15			11			254			—		298
Provision for loan and lease losses	2,047			81			408			(300		)	817			193			490			—		3,736
Balance, March 31, 2019	$	8,241		$	1,038		$	1,891		$	1,186		$	5,888		$	328		$	2,044		$	—	$	20,616

(dollars in thousands)	Commercial Mortgage			Home Equity Lines and Loans			Residential Mortgage			Construction			Commercial and Industrial			Consumer			Leases			Unallocated		Total
Balance, December 31, 2017	$	7,550		$	1,086		$	1,926		$	937		$	5,038		$	246		$	742		$	—	$	17,525
Charge-offs	—			(25		)	—			—			(283		)	(49		)	(596		)	—		(953		)
Recoveries	3			—			—			1			—			1			55			—		60
Provision for loan and lease losses	(379		)	(16		)	(28		)	(94		)	606			93			848			—		1,030
Balance, March 31, 2018	$	7,174		$	1,045		$	1,898		$	844		$	5,361		$	291		$	1,049		$	—	$	17,662

The following tables detail the allocation of the Allowance for all portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of March 31, 2019 and December 31, 2018:

As of March 31, 2019	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Unallocated		Total
(dollars in thousands)
Allowance on loans and leases:
Individually evaluated for impairment	$	—	$	149	$	259	$	—	$	160	$	37	$	—	$	—	$	605
Collectively evaluated for impairment	8,241		889		1,632		1,186		5,728		291		2,044		—		20,011
Purchased credit-impaired(1)	—		—		—		—		—		—		—		—		—
Total	$	8,241	$	1,038	$	1,891	$	1,186	$	5,888	$	328	$	2,044	$	—	$	20,616

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

As of December 31, 2018	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Unallocated		Total
(dollars in thousands)
Allowance on loans and leases:
Individually evaluated for impairment	$	—	$	162	$	272	$	—	$	—	$	28	$	—	$	—	$	462
Collectively evaluated for impairment	7,567		841		1,541		1,485		5,461		201		1,868		—		18,964
Purchased credit-impaired(1)	—		—		—		—		—		—		—		—		—
Total	$	7,567	$	1,003	$	1,813	$	1,485	$	5,461	$	229	$	1,868	$	—	$	19,426

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

The following tables detail the carrying value for all portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of March 31, 2019 and December 31, 2018:

As of March 31, 2019	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Carrying value of loans and leases:
Individually evaluated for impairment	$	5,558	$	8,291	$	6,106	$	—	$	3,358	$	106	$	—	$	23,419
Collectively evaluated for impairment	1,731,170		195,986		496,271		159,761		701,293		47,715		156,366		3,488,562
Purchased credit-impaired(1)	9,967		514		2		—		1,050		—		—		11,533
Total	$	1,746,695	$	204,791	$	502,379	$	159,761	$	705,701	$	47,821	$	156,366	$	3,523,514

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

As of December 31, 2018	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Carrying value of loans and leases:
Individually evaluated for impairment	$	7,008	$	4,998	$	6,608	$	—	$	2,629	$	134	$	—	$	21,377
Collectively evaluated for impairment	1,642,117		201,841		487,747		178,673		691,879		46,680		144,536		3,393,473
Purchased credit-impaired(1)	8,311		512		—		2,405		1,076		—		—		12,304
Total	$	1,657,436	$	207,351	$	494,355	$	181,078	$	695,584	$	46,814	$	144,536	$	3,427,154

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

The following tables detail the allocation of the Allowance for originated portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of March 31, 2019 and December 31, 2018:

As of March 31, 2019	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Allowance on loans and leases:
Individually evaluated for impairment	$	—	$	149	$	170	$	—	$	160	$	37	$	—	$	516
Collectively evaluated for impairment	8,241		889		1,632		1,186		5,728		291		2,036		20,003
Total	$	8,241	$	1,038	$	1,802	$	1,186	$	5,888	$	328	$	2,036	$	20,519

As of December 31, 2018	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Allowance on loans and leases:
Individually evaluated for impairment	$	—	$	162	$	175	$	—	$	—	$	28	$	—	$	365
Collectively evaluated for impairment	7,567		841		1,541		1,485		5,461		201		1,868		18,964
Total	$	7,567	$	1,003	$	1,716	$	1,485	$	5,461	$	229	$	1,868	$	19,329

The following tables detail the carrying value for originated portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of March 31, 2019 and December 31, 2018:

As of March 31, 2019	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Carrying value of loans and leases:
Individually evaluated for impairment	$	3,458	$	8,265	$	4,719	$	—	$	3,050	$	62	$	—	$	19,554
Collectively evaluated for impairment	1,433,153		171,810		418,919		157,572		648,154		45,167		137,941		3,012,716
Total	$	1,436,611	$	180,075	$	423,638	$	157,572	$	651,204	$	45,229	$	137,941	$	3,032,270

As of December 31, 2018	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Carrying value of loans and leases:
Individually evaluated for impairment	$	4,874	$	4,972	$	5,106	$	—	$	2,314	$	71	$	—	$	17,337
Collectively evaluated for impairment	1,322,948		176,534		405,916		174,592		622,329		44,028		121,567		2,867,914
Total	$	1,327,822	$	181,506	$	411,022	$	174,592	$	624,643	$	44,099	$	121,567	$	2,885,251

The following tables detail the allocation of the Allowance for acquired portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of March 31, 2019 and December 31, 2018:

As of March 31, 2019	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Allowance on loans and leases:
Individually evaluated for impairment	$	—	$	—	$	89	$	—	$	—	$	—	$	—	$	89
Collectively evaluated for impairment	—		—		—		—		—		—		8		8
Purchased credit-impaired(1)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	89	$	—	$	—	$	—	$	8	$	97

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

As of December 31, 2018	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Allowance on loans and leases:
Individually evaluated for impairment	$	—	$	—	$	97	$	—	$	—	$	—	$	—	$	97
Collectively evaluated for impairment	—		—		—		—		—		—		—		—
Purchased credit-impaired(1)	—		—		—		—		—		—		—		—
Total	$	—	$	—	$	97	$	—	$	—	$	—	$	—	$	97

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

The following tables detail the carrying value for acquired portfolio loans and leases by portfolio segment based on the methodology used to evaluate the loans and leases for impairment as of March 31, 2019 and December 31, 2018:

As of March 31, 2019	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Carrying value of loans and leases:
Individually evaluated for impairment	$	2,100	$	26	$	1,387	$	—	$	308	$	44	$	—	$	3,865
Collectively evaluated for impairment	298,017		24,176		77,352		2,189		53,139		2,548		18,425		475,846
Purchased credit-impaired(1)	9,967		514		2		—		1,050		—		—		11,533
Total	$	310,084	$	24,716	$	78,741	$	2,189	$	54,497	$	2,592	$	18,425	$	491,244

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

As of December 31, 2018	Commercial Mortgage		Home Equity Lines and Loans		Residential Mortgage		Construction		Commercial and Industrial		Consumer		Leases		Total
(dollars in thousands)
Carrying value of loans and leases:
Individually evaluated for impairment	$	2,134	$	26	$	1,502	$	—	$	315	$	63	$	—	$	4,040
Collectively evaluated for impairment	319,169		25,307		81,831		4,081		69,550		2,652		22,969		525,559
Purchased credit-impaired(1)	8,311		512		—		2,405		1,076		—		—		12,304
Total	$	329,614	$	25,845	$	83,333	$	6,486	$	70,941	$	2,715	$	22,969	$	541,903

(1) Purchased credit-impaired loans are evaluated for impairment on an individual basis.

As part of the process of determining the Allowance for the different segments of the loan and lease portfolio, management considers certain credit quality indicators. For the commercial mortgage, construction and commercial and industrial loan segments, periodic reviews of the individual loans are performed by both in-house staff as well as external loan reviewers. The result of these reviews is reflected in the risk grade assigned to each loan. These internally assigned grades are as follows:

• Pass – Loans considered satisfactory with no indications of deterioration.

• Special mention - Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

• Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

• Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

In addition, for the remaining segments of the loan and lease portfolio, which include residential mortgage, home equity lines and loans, consumer, and leases, the credit quality indicator used to determine this component of the Allowance is based on performance status.

The following tables detail the carrying value of all portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of March 31, 2019 and December 31, 2018:

	Credit Risk Profile by Internally Assigned Grade - All Loans and Leases
As of March 31, 2019
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial mortgage	$	1,714,426	$	10,571	$	21,292	$	406	$	1,746,695
Home equity loans and lines	197,373		—		7,418		—		204,791
Residential	499,339		—		3,040		—		502,379
Construction	152,120		937		6,704		—		159,761
Commercial & Industrial	691,708		2,581		11,412		—		705,701
Consumer	47,195		—		626		—		47,821
Leases	155,453		—		913		—		156,366
Total	$	3,457,614	$	14,089	$	51,405	$	406	$	3,523,514

	Credit Risk Profile by Internally Assigned Grade - All Loans and Leases
As of December 31, 2018
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial mortgage	$	1,635,068	$	631	$	20,639	$	1,098	$	1,657,436
Home equity loans and lines	203,037		—		4,314		—		207,351
Residential	490,789		—		3,566		—		494,355
Construction	171,353		938		8,787		—		181,078
Commercial & Industrial	684,444		2,737		8,402		1		695,584
Consumer	46,588		—		226		—		46,814
Leases	143,561		—		975		—		144,536
Total	$	3,374,840	$	4,306	$	46,909	$	1,099	$	3,427,154

The following tables detail the carrying value of originated portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of March 31, 2019 and December 31, 2018:

	Credit Risk Profile by Internally Assigned Grade - Originated Loans and Leases
As of March 31, 2019
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial mortgage	$	1,428,214	$	4,325	$	4,072	$	—	$	1,436,611
Home equity loans and lines	173,197		—		6,878		—		180,075
Residential	421,168		—		2,470		—		423,638
Construction	149,931		937		6,704		—		157,572
Commercial & Industrial	639,463		2,352		9,389		—		651,204
Consumer	44,647		—		582		—		45,229
Leases	137,513		—		428		—		137,941
Total	$	2,994,133	$	7,614	$	30,523	$	—	$	3,032,270

	Credit Risk Profile by Internally Assigned Grade - Originated Loans and Leases
As of December 31, 2018
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial mortgage	$	1,321,973	$	631	$	5,218	$	—	$	1,327,822
Home equity loans and lines	177,916		—		3,590		—		181,506
Residential	408,095		—		2,927		—		411,022
Construction	167,272		938		6,382		—		174,592
Commercial & Industrial	615,817		2,511		6,314		1		624,643
Consumer	43,936		—		163		—		44,099
Leases	121,175		—		392		—		121,567
Total	$	2,856,184	$	4,080	$	24,986	$	1	$	2,885,251

The following tables detail the carrying value of acquired portfolio loans and leases by portfolio segment based on the credit quality indicators used to determine the Allowance as of March 31, 2019 and December 31, 2018:

	Credit Risk Profile by Internally Assigned Grade - Acquired Loans and Leases
As of March 31, 2019
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial mortgage	$	286,212	$	6,246	$	17,220	$	406	$	310,084
Home equity loans and lines	24,176		—		540		—		24,716
Residential	78,171		—		570		—		78,741
Construction	2,189		—		—		—		2,189
Commercial & Industrial	52,245		229		2,023		—		54,497
Consumer	2,548		—		44		—		2,592
Leases	17,940		—		485		—		18,425
Total	$	463,481	$	6,475	$	20,882	$	406	$	491,244

	Credit Risk Profile by Internally Assigned Grade - Acquired Loans and Leases
As of December 31, 2018
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Commercial mortgage	$	313,095	$	—	$	15,421	$	1,098	$	329,614
Home equity loans and lines	25,121		—		724		—		25,845
Residential	82,694		—		639		—		83,333
Construction	4,081		—		2,405		—		6,486
Commercial & Industrial	68,627		226		2,088		—		70,941
Consumer	2,652		—		63		—		2,715
Leases	22,386		—		583		—		22,969
Total	$	518,656	$	226	$	21,923	$	1,098	$	541,903

G. Troubled Debt Restructurings (“TDRs”)

The restructuring of a loan is considered a “troubled debt restructuring” if both of the following conditions are met: (i) the borrower is experiencing financial difficulties, and (ii) the creditor has granted a concession. The most common concessions granted include one or more modifications to the terms of the debt, such as (a) a reduction in the interest rate for the remaining life of the debt, (b) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk, (c) a temporary period of interest-only payments, (d) a reduction in the contractual payment amount for either a short period or remaining term of the loan, and (e) for leases, a reduced lease payment. A less common concession granted is the forgiveness of a portion of the principal.

The determination of whether a borrower is experiencing financial difficulties takes into account not only the current financial condition of the borrower, but also the potential financial condition of the borrower, were a concession not granted. Similarly, the determination of whether a concession has been granted is very subjective in nature. For example, simply extending the term of a loan at its original interest rate or even at a higher interest rate could be interpreted as a concession unless the borrower could readily obtain similar credit terms from a different lender.

The following table presents the balance of TDRs as of the indicated dates:

(dollars in thousands)	March 31, 2019		December 31, 2018
TDRs included in nonperforming loans and leases	$	4,057	$	1,217
TDRs in compliance with modified terms	5,149		9,745
Total TDRs	$	9,206	$	10,962

The following table presents information regarding loan and lease modifications categorized as TDRs for the three months ended March 31, 2019:

	For the Three Months Ended March 31, 2019
(dollars in thousands)	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Home equity loans and lines	—	$	—	$	—
Residential mortgages	—	—		—
Leases	2	38		38
Total	2	$	38	$	38

The following table presents information regarding the types of loan and lease modifications made for the three months ended March 31, 2019:

	Number of Contracts
	Loan Term Extension	Interest Rate Change and Term Extension	Interest Rate Change and/or Interest-Only Period	Contractual Payment Reduction (Leases only)	Temporary Payment Deferral
Home equity loans and lines	—	—	—	—	—
Residential mortgages	—	—	—	—	—
Leases	1	—	—	1	—
Total	1	—	—	1	—

H. Impaired Loans

The following tables detail the recorded investment and principal balance of impaired loans by portfolio segment, their related Allowance and interest income recognized for the three months ended March 31, 2019 and 2018 (purchased credit-impaired loans are not included in the tables):

As of and for the Three Months Ended March 31, 2019	Recorded Investment(2)		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash-Basis Interest Income Recognized
(dollars in thousands)
Impaired loans with related allowance:
Home equity lines and loans	$	1,178	$	1,178	$	149	$	1,182	$	10	$	—
Residential mortgage	1,917		1,917		259		1,921		23		—
Commercial and industrial	334		339		160		335		—		—
Consumer	59		59		37		59		—		—
Total	$	3,488	$	3,493	$	605	$	3,497	$	33	$	—
Impaired loans without related allowance(1):
Commercial mortgage	$	5,558	$	7,191	$	—	$	6,982	$	—	$	—
Home equity lines and loans	7,113		7,167		—		7,180		2		—
Residential mortgage	4,191		4,294		—		4,239		21		—
Commercial and industrial	3,023		3,653		—		3,030		5		—
Consumer	47		62		—		47		—		—
Total	$	19,932	$	22,367	$	—	$	21,478	$	28	$	—
Grand total	$	23,420	$	25,860	$	605	$	24,975	$	61	$	—

(1) The table above does not include the recorded investment of $1.0 million of impaired leases without a related Allowance.

(2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal.

As of and for the Three Months Ended March 31, 2018	Recorded Investment(2)		Contractual Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Cash-Basis Interest Income Recognized
(dollars in thousands)
Impaired loans with related allowance:
Home equity lines and loans	$	574	$	574	$	19	$	575	$	6	$	—
Residential mortgage	1,796		1,796		224		1,801		21		—
Commercial and industrial	54		110		40		97		—		—
Consumer	27		27		4		27		—		—
Total	$	2,451	$	2,507	$	287	$	2,500	$	27	$	—
Impaired loans without related allowance(1):
Commercial mortgage	$	1,394	$	1,483	$	—	$	1,394	$	23	$	—
Home equity lines and loans	2,052		2,114		—		2,094		2		—
Residential mortgage	3,554		3,758		—		154		—		—
Commercial and industrial	2,700		3,498		—		2,872		5		—
Total	$	9,700	$	10,853	$	—	$	6,514	$	30	$	—
Grand total	$	12,151	$	13,360	$	287	$	9,014	$	57	$	—

(1) The table above does not include the recorded investment of $510 thousand of impaired leases without a related Allowance.

(2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal.

(dollars in thousands)	Recorded Investment (2)		Principal Balance		Related Allowance
As of December 31, 2018
Impaired loans with related allowance:
Home equity lines and loans	$	1,280	$	1,280	$	162
Residential mortgage	1,966		1,966		272
Consumer	50		50		28
Total	$	3,296	$	3,296	$	462
Impaired loans without related allowance(1):
Commercial mortgage	$	7,007	$	7,264	$	—
Home equity lines and loans	3,718		3,724		—
Residential mortgage	4,641		4,728		—
Commercial and industrial	2,629		3,803		—
Consumer	83		86
Total	$	18,078	$	19,605	$	—
Grand total	$	21,374	$	22,901	$	462

(1) The table above does not include the recorded investment of$1.2 millionof impaired leases without a related Allowance.

(2) Recorded investment equals principal balance less partial charge-offs and interest payments on non-performing loans that have been applied to principal.

I. Loan Mark

Loans acquired in mergers and acquisitions are recorded at fair value as of the date of the transaction. This adjustment to the acquired principal amount is referred to as the “Loan Mark.” With the exception of purchased credit impaired loans, for which the Loan Mark is accounted under ASC 310-30, the Loan Mark is amortized or accreted as an adjustment to yield over the lives of the loans.

The following tables detail, for acquired loans, the outstanding principal, remaining Loan Mark, and recorded investment, by portfolio segment, as of the dates indicated:

	As of March 31, 2019
(dollars in thousands)	Outstanding Principal		Remaining Loan Mark			Recorded Investment
Commercial mortgage	$	318,488	$	(8,404	)	$	310,084
Home equity lines and loans	26,981		(2,265		)	24,716
Residential mortgage	81,372		(2,631		)	78,741
Construction	2,190		(1		)	2,189
Commercial and industrial	56,400		(1,903		)	54,497
Consumer	2,680		(88		)	2,592
Leases	18,974		(549		)	18,425
Total	$	507,085	$	(15,841	)	$	491,244

	As of December 31, 2018
(dollars in thousands)	Outstanding Principal		Remaining Loan Mark			Recorded Investment
Commercial mortgage	$	339,241	$	(9,627	)	$	329,614
Home equity lines and loans	28,212		(2,367		)	25,845
Residential mortgage	86,111		(2,778		)	83,333
Construction	6,780		(294		)	6,486
Commercial and industrial	72,948		(2,007		)	70,941
Consumer	2,828		(113		)	2,715
Leases	23,695		(726		)	22,969
Total	$	559,815	$	(17,912	)	$	541,903