Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories At September 30, 2017 (Dollars in thousands) Originated Acquired Total Commercial, financial and agricultural $ 782,769 $ 76,448 $ 859,217 Real estate-commercial 1,176,956 339,018 1,515,974 Real estate-construction 149,917 6,156 156,073 Real estate-residential secured for business purpose 213,811 96,209 310,020 Real estate-residential secured for personal purpose 249,283 66,623 315,906 Real estate-home equity secured for personal purpose 166,810 11,585 178,395 Loans to individuals 27,297 144 27,441 Lease financings 124,138 — 124,138 Total loans and leases held for investment, net of deferred income $ 2,890,981 $ 596,183 $ 3,487,164 Unearned lease income, included in the above table $ (13,864 ) $ — $ (13,864 ) Net deferred costs, included in the above table 4,725 — 4,725 Overdraft deposits included in the above table 68 — 68 At December 31, 2016 (Dollars in thousands) Originated Acquired Total Commercial, financial and agricultural $ 663,221 $ 160,045 $ 823,266 Real estate-commercial 909,581 465,368 1,374,949 Real estate-construction 142,891 31,953 174,844 Real estate-residential secured for business purpose 151,931 142,137 294,068 Real estate-residential secured for personal purpose 210,377 80,431 290,808 Real estate-home equity secured for personal purpose 147,982 14,857 162,839 Loans to individuals 30,110 263 30,373 Lease financings 134,739 — 134,739 Total loans and leases held for investment, net of deferred income $ 2,390,832 $ 895,054 $ 3,285,886 Unearned lease income, included in the above table $ (15,970 ) $ — $ (15,970 ) Net deferred costs, included in the above table 4,503 — 4,503 Overdraft deposits included in the above table 84 — 84 Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet. The carrying amount of acquired loans at September 30, 2017 totaled $596.2 million , including $466.5 million of loans from the Fox Chase acquisition and $129.7 million from the Valley Green Bank acquisition. At September 30, 2017 , loans acquired with deteriorated credit quality, or acquired credit impaired loans, totaled $1.6 million representing $832 thousand from the Fox Chase acquisition and $790 thousand from the Valley Green Bank acquisition. Acquired credit impaired loans are accounted for in accordance with Accounting Standards Codification (ASC) Topic 310-30. The outstanding principal balance and carrying amount for acquired credit impaired loans at September 30, 2017 and December 31, 2016 were as follows: (Dollars in thousands) At September 30, 2017 At December 31, 2016 Outstanding principal balance $ 2,428 $ 8,993 Carrying amount 1,622 7,352 Allowance for loan losses — — The following table presents the changes in accretable yield on acquired credit impaired loans: Nine Months Ended September 30, (Dollars in thousands) 2017 2016 Beginning of period $ 50 $ 144 Acquisition of credit impaired loans — 283 Reclassification from nonaccretable discount 823 318 Accretable discount amortized to interest income (850 ) (501 ) Disposals (4 ) (34 ) End of period $ 19 $ 210 Age Analysis of Past Due Loans and Leases The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at September 30, 2017 and December 31, 2016 : (Dollars in thousands) 30-59 60-89 90 Days Total Current Acquired Credit Impaired Total Loans Recorded At September 30, 2017 Commercial, financial and agricultural $ 1,537 $ 164 $ 1,594 $ 3,295 $ 855,457 $ 465 $ 859,217 $ — Real estate—commercial real estate and construction: Commercial real estate 4,510 164 1,688 6,362 1,509,256 356 1,515,974 164 Construction 861 — 365 1,226 154,847 — 156,073 — Real estate—residential and home equity: Residential secured for business purpose 541 265 1,255 2,061 307,375 584 310,020 — Residential secured for personal purpose 2,428 172 446 3,046 312,643 217 315,906 423 Home equity secured for personal purpose 1,497 36 451 1,984 176,411 — 178,395 282 Loans to individuals 155 154 198 507 26,934 — 27,441 198 Lease financings 1,458 1,318 2,231 5,007 119,131 — 124,138 528 Total $ 12,987 $ 2,273 $ 8,228 $ 23,488 $ 3,462,054 $ 1,622 $ 3,487,164 $ 1,595 At December 31, 2016 Commercial, financial and agricultural $ 1,536 $ 256 $ 1,335 $ 3,127 $ 819,550 $ 589 $ 823,266 $ — Real estate—commercial real estate and construction: Commercial real estate 1,482 1,560 2,591 5,633 1,363,606 5,710 1,374,949 — Construction 202 — — 202 174,642 — 174,844 — Real estate—residential and home equity: Residential secured for business purpose 1,390 428 1,539 3,357 289,927 784 294,068 — Residential secured for personal purpose 3,243 905 879 5,027 285,512 269 290,808 481 Home equity secured for personal purpose 717 142 521 1,380 161,459 — 162,839 171 Loans to individuals 324 95 142 561 29,812 — 30,373 142 Lease financings 1,731 1,418 729 3,878 130,861 — 134,739 193 Total $ 10,625 $ 4,804 $ 7,736 $ 23,165 $ 3,255,369 $ 7,352 $ 3,285,886 $ 987 Nonperforming Loans and Leases The following presents, by class of loans and leases, nonperforming loans and leases at September 30, 2017 and December 31, 2016 . Nonperforming loans exclude acquired credit impaired loans from Fox Chase and Valley Green. At September 30, 2017 At December 31, 2016 (Dollars in thousands) Nonaccrual Accruing Loans and Total Nonperforming Nonaccrual Accruing Loans and Total Nonperforming Commercial, financial and agricultural $ 5,143 $ 929 $ — $ 6,072 $ 5,746 $ 967 $ — $ 6,713 Real estate—commercial real estate and construction: Commercial real estate 4,514 10,279 164 14,957 5,651 1,519 — 7,170 Construction 365 — — 365 — — — — Real estate—residential and home equity: Residential secured for business purpose 3,333 218 — 3,551 4,898 766 — 5,664 Residential secured for personal purpose 530 42 423 995 560 — 481 1,041 Home equity secured for personal purpose 361 — 282 643 525 — 171 696 Loans to individuals — — 198 198 — — 142 142 Lease financings 1,703 — 528 2,231 536 — 193 729 Total $ 15,949 $ 11,468 $ 1,595 $ 29,012 $ 17,916 $ 3,252 $ 987 $ 22,155 * Includes nonaccrual troubled debt restructured loans and lease modifications of $1.7 million and $1.8 million at September 30, 2017 and December 31, 2016 , respectively. Accruing troubled debt restructuring loans of $11.5 million includes balances of $9.2 million related to one borrower which were classified as troubled debt restructurings as the related loans were granted amortization period extensions during the second quarter of 2017. Credit Quality Indicators The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at September 30, 2017 and December 31, 2016 . The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. 1. Cash Secured—No credit risk 2. Fully Secured—Negligible credit risk 3. Strong—Minimal credit risk 4. Satisfactory—Nominal credit risk 5. Acceptable—Moderate credit risk 6. Pre-Watch—Marginal, but stable credit risk 7. Special Mention—Potential weakness 8. Substandard—Well-defined weakness 9. Doubtful—Collection in-full improbable 10. Loss—Considered uncollectible Commercial Credit Exposure Credit Risk by Internally Assigned Grades The following table presents classifications for originated loans: (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Total At September 30, 2017 Grade: 1. Cash secured/ 2. Fully secured $ 2,314 $ — $ 15,194 $ 1,700 $ 19,208 3. Strong 13,707 1,921 — — 15,628 4. Satisfactory 31,732 30,158 — 350 62,240 5. Acceptable 537,421 901,571 74,898 184,904 1,698,794 6. Pre-watch 174,775 203,340 58,266 21,587 457,968 7. Special Mention 1,891 10,499 1,194 299 13,883 8. Substandard 20,929 29,467 365 4,971 55,732 9. Doubtful — — — — — 10.Loss — — — — — Total $ 782,769 $ 1,176,956 $ 149,917 $ 213,811 $ 2,323,453 At December 31, 2016 Grade: 1. Cash secured/ 2. Fully secured $ 272 $ — $ 13,714 $ 162 $ 14,148 3. Strong 14,980 2,045 — — 17,025 4. Satisfactory 35,529 38,861 — 367 74,757 5. Acceptable 465,675 676,212 110,650 133,716 1,386,253 6. Pre-watch 113,499 128,646 18,213 12,025 272,383 7. Special Mention 8,820 22,439 314 1,199 32,772 8. Substandard 24,446 41,378 — 4,462 70,286 9. Doubtful — — — — — 10.Loss — — — — — Total $ 663,221 $ 909,581 $ 142,891 $ 151,931 $ 1,867,624 The following table presents classifications for acquired loans: (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Total At September 30, 2017 Grade: 1. Cash secured/ 2. Fully secured $ 1,115 $ — $ — $ — $ 1,115 3. Strong — — — — — 4. Satisfactory 132 501 — — 633 5. Acceptable 62,601 199,298 — 75,749 337,648 6. Pre-watch 7,206 130,897 6,156 17,918 162,177 7. Special Mention — 1,143 — — 1,143 8. Substandard 5,394 7,179 — 2,542 15,115 9. Doubtful — — — — — 10.Loss — — — — — Total $ 76,448 $ 339,018 $ 6,156 $ 96,209 $ 517,831 December 31, 2016 Grade: 1. Cash secured/ 2. Fully secured $ 583 $ — $ — $ — $ 583 3. Strong — — — — — 4. Satisfactory 4,399 1,018 — — 5,417 5. Acceptable 113,512 282,199 20,565 117,322 533,598 6. Pre-watch 31,697 163,623 11,388 14,405 221,113 7. Special Mention 73 7,705 — 6,245 14,023 8. Substandard 9,781 10,823 — 4,165 24,769 9. Doubtful — — — — — 10.Loss — — — — — Total $ 160,045 $ 465,368 $ 31,953 $ 142,137 $ 799,503 Credit Exposure—Real Estate—Residential Secured for Personal Purpose, Real Estate—Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings. Nonperforming loans and leases are loans and leases past due 90 days or more, loans and leases on nonaccrual of interest and troubled debt restructured loans and lease modifications. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. The following table presents classifications for originated loans: (Dollars in thousands) Real Estate— Real Estate— Loans to Lease Total At September 30, 2017 Performing $ 248,796 $ 166,414 $ 27,099 $ 121,907 $ 564,216 Nonperforming 487 396 198 2,231 3,312 Total $ 249,283 $ 166,810 $ 27,297 $ 124,138 $ 567,528 At December 31, 2016 Performing $ 210,208 $ 147,286 $ 29,968 $ 134,010 $ 521,472 Nonperforming 169 696 142 729 1,736 Total $ 210,377 $ 147,982 $ 30,110 $ 134,739 $ 523,208 The following table presents classifications for acquired loans: (Dollars in thousands) Real Estate— Real Estate— Loans to Lease Total At September 30, 2017 Performing $ 66,115 $ 11,338 $ 144 $ — $ 77,597 Nonperforming 508 247 — — 755 Total $ 66,623 $ 11,585 $ 144 $ — $ 78,352 At December 31, 2016 Performing $ 79,559 $ 14,857 $ 263 $ — $ 94,679 Nonperforming 872 — — — 872 Total $ 80,431 $ 14,857 $ 263 $ — $ 95,551 Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses for the three and nine months ended September 30, 2017 and 2016 : (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Loans to Lease Unallocated Total Three Months Ended September 30, 2017 Reserve for loan and lease losses: Beginning balance $ 8,313 $ 8,468 $ 1,129 $ 974 $ 329 $ 1,660 $ 37 $ 20,910 Charge-offs (290 ) — (56 ) (83 ) (61 ) (3,097 ) N/A (3,587 ) Recoveries 325 1 29 68 35 73 N/A 531 (Recovery of provision) provision (1,732 ) 787 204 756 51 2,654 (30 ) 2,690 Recovery of provision for acquired credit impaired loans — — (1 ) — — — — (1 ) Ending balance $ 6,616 $ 9,256 $ 1,305 $ 1,715 $ 354 $ 1,290 $ 7 $ 20,543 Three Months Ended September 30, 2016 Reserve for loan and lease losses: Beginning balance $ 5,788 $ 7,549 $ 56 $ 1,301 $ 411 $ 1,121 $ 927 $ 17,153 Charge-offs (1,753 ) (100 ) (3 ) (34 ) (123 ) (176 ) N/A (2,189 ) Recoveries 351 83 9 15 28 34 N/A 520 Provision (recovery of provision) 1,300 (388 ) (32 ) 268 114 184 (30 ) 1,416 Recovery of provision for acquired credit impaired loans — — — (1 ) — — — (1 ) Ending balance $ 5,686 $ 7,144 $ 30 $ 1,549 $ 430 $ 1,163 $ 897 $ 16,899 Nine Months Ended September 30, 2017 Reserve for loan and lease losses: Beginning balance $ 7,037 $ 7,505 $ 774 $ 993 $ 364 $ 788 $ 38 $ 17,499 Charge-offs (576 ) (30 ) (1,237 ) (177 ) (301 ) (3,681 ) N/A (6,002 ) Recoveries 722 4 47 89 116 168 N/A 1,146 (Recovery of provision) provision (567 ) 1,777 1,722 808 175 4,015 (31 ) 7,899 (Recovery of provision) provision for acquired credit impaired loans — — (1 ) 2 — — — 1 Ending balance $ 6,616 $ 9,256 $ 1,305 $ 1,715 $ 354 $ 1,290 $ 7 $ 20,543 Nine Months Ended September 30, 2016 Reserve for loan and lease losses: Beginning balance $ 6,418 $ 6,572 $ 763 $ 1,575 $ 346 $ 1,042 $ 912 $ 17,628 Charge-offs (3,580 ) (305 ) (268 ) (90 ) (307 ) (541 ) N/A (5,091 ) Recoveries 1,316 99 62 66 91 157 N/A 1,791 Provision (recovery of provision) 1,532 600 (527 ) 1 300 505 (15 ) 2,396 Provision (recovery of provision) for acquired credit impaired loans — 178 — (3 ) — — — 175 Ending balance $ 5,686 $ 7,144 $ 30 $ 1,549 $ 430 $ 1,163 $ 897 $ 16,899 N/A – Not applicable During the quarter ended September 30, 2017, the Corporation recorded charge-offs of $2.8 million related to $5.0 million of software leases under a vendor referral program. The provision for loan losses related to this program was $1.9 million during the quarter ended September 30, 2017 as the Corporation had an allowance for loan and lease losses reserve of $886 thousand as of June 30, 2017. These leases are personally guaranteed by 29 high net worth individuals. During the first quarter of 2017, the lessees stopped making payments due to disputes with the vendor, and Univest Capital, Inc., a subsidiary of the Corporation, filed legal complaints to pursue collection of all amounts owed. A complaint was subsequently filed against Univest Capital Inc. and certain other defendants on March 28, 2017 by one of the lessees in federal court in Texas seeking, among other things, class action certification and a declaration that the contracts and related guarantees are null and void. On September 25, 2017 , Univest Capital, Inc. entered into a Release and Settlement Agreement whereby Univest Capital, Inc. will receive $1.0 million based upon court approval of the Agreement and is eligible to receive up to an additional $1.3 million . Payment of the $1.3 million is subject to the individual guarantor's election of whether or not they will be subject to the Release and Settlement Agreement. It is expected this election process will be completed by March 31, 2018 . If a guarantor elects to be subject to the Release and Settlement Agreement, Univest Capital, Inc. will receive a payment of $43 thousand per guarantor. If a guarantor elects not to be subject to the Release and Settlement Agreement, Univest Capital, Inc. has the right to pursue collection of the full amount owed, which ranges from $108 thousand to $228 thousand per guarantor, via the normal collection process. As of September 30, 2017, Univest Capital, Inc. has a receivable totaling $2.3 million related to this matter, of which $1.3 million is recorded as a nonaccruing lease receivable and $1.0 million is included in other assets. The $1.0 million payment under the Release and Settlement Agreement, which is subject to court approval, is currently in escrow and is expected to be received during the fourth quarter of 2017. The following presents, by portfolio segment, a summary of the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method at September 30, 2017 and 2016 : (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Loans to Lease Unallocated Total At September 30, 2017 Reserve for loan and lease losses: Ending balance: individually evaluated for impairment $ 15 $ 40 $ 33 $ — $ — $ — N/A $ 88 Ending balance: collectively evaluated for impairment 6,601 9,216 1,272 1,715 354 1,290 7 20,455 Total ending balance $ 6,616 $ 9,256 $ 1,305 $ 1,715 $ 354 $ 1,290 $ 7 $ 20,543 Loans and leases held for investment: Ending balance: individually evaluated for impairment $ 7,883 $ 17,274 $ 4,471 $ 932 $ — $ 1,250 $ 31,810 Ending balance: collectively evaluated for impairment 774,886 1,307,585 209,340 415,161 27,297 122,888 2,857,157 Loans measured at fair value — 2,014 — — — — 2,014 Acquired non-credit impaired loans 75,983 344,818 95,625 77,991 144 — 594,561 Acquired credit impaired loans 465 356 584 217 — — 1,622 Total ending balance $ 859,217 $ 1,672,047 $ 310,020 $ 494,301 $ 27,441 $ 124,138 $ 3,487,164 At September 30, 2016 Reserve for loan and lease losses: Ending balance: individually evaluated for impairment $ — $ — $ 5 $ — $ — $ — N/A $ 5 Ending balance: collectively evaluated for impairment 5,686 7,144 25 1,549 430 1,163 897 16,894 Total ending balance $ 5,686 $ 7,144 $ 30 $ 1,549 $ 430 $ 1,163 $ 897 $ 16,899 Loans and leases held for investment: Ending balance: individually evaluated for impairment $ 10,273 $ 23,014 $ 4,614 $ 1,078 $ — $ — $ 38,979 Ending balance: collectively evaluated for impairment 587,901 950,730 127,096 341,647 30,137 129,885 2,167,396 Loans measured at fair value — 2,234 — — — — 2,234 Acquired non-credit impaired loans 184,784 525,944 155,348 100,589 512 — 967,177 Acquired credit impaired loans 722 12,451 1,136 266 — — 14,575 Total ending balance $ 783,680 $ 1,514,373 $ 288,194 $ 443,580 $ 30,649 $ 129,885 $ 3,190,361 N/A – Not applicable The Corporation records a provision for loan loss for the acquired non-impaired loans only when additional deterioration of the portfolio is identified over the projections utilized in the initial fair value analysis. After the acquisition measurement period, the present value of any decreases in expected cash flows of acquired credit impaired loans will generally result in an impairment charge recorded as a provision for loan loss, resulting in an increase to the allowance. Impaired Loans The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans, the amounts of the impaired loans for which there is not a reserve for credit losses and the amounts for which there is a reserve for credit losses at September 30, 2017 and December 31, 2016 . The impaired loans exclude acquired credit impaired loans. At September 30, 2017 At December 31, 2016 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related Impaired loans with no related reserve recorded: Commercial, financial and agricultural $ 7,721 $ 9,332 $ 10,911 $ 12,561 Real estate—commercial real estate 15,727 16,616 24,469 25,342 Real estate—construction 365 365 — — Real estate—residential secured for business purpose 3,933 5,040 5,704 6,253 Real estate—residential secured for personal purpose 572 628 560 594 Real estate—home equity secured for personal purpose 360 367 525 528 Total impaired loans with no related reserve recorded $ 28,678 $ 32,348 $ 42,169 $ 45,278 Impaired loans with a reserve recorded: Commercial, financial and agricultural $ 162 $ 165 $ 15 $ 166 $ 166 $ 19 Real estate—commercial real estate 1,182 1,182 40 597 597 25 Real estate—residential secured for business purpose 538 539 33 983 1,105 191 Total impaired loans with a reserve recorded $ 1,882 $ 1,886 $ 88 $ 1,746 $ 1,868 $ 235 At September 30, 2017 At December 31, 2016 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related Total impaired loans: Commercial, financial and agricultural $ 7,883 $ 9,497 $ 15 $ 11,077 $ 12,727 $ 19 Real estate—commercial real estate 16,909 17,798 40 25,066 25,939 25 Real estate—construction 365 365 — — — — Real estate—residential secured for business purpose 4,471 5,579 33 6,687 7,358 191 Real estate—residential secured for personal purpose 572 628 — 560 594 — Real estate—home equity secured for personal purpose 360 367 — 525 528 — Total impaired loans $ 30,560 $ 34,234 $ 88 $ 43,915 $ 47,146 $ 235 Impaired loans include nonaccrual loans, accruing troubled debt restructured loans and other accruing impaired loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates. Impaired loans include other accruing impaired loans of $4.8 million and $23.3 million at September 30, 2017 and December 31, 2016 , respectively. Specific reserves on other accruing impaired loans were $73 thousand and $84 thousand at September 30, 2017 and December 31, 2016 , respectively. The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method. Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (Dollars in thousands) Average Interest Additional Average Interest Additional Commercial, financial and agricultural $ 10,211 $ 52 $ 92 $ 12,880 $ 62 $ 108 Real estate—commercial real estate 18,583 201 69 25,309 273 58 Real estate—construction 365 — 5 — — — Real estate—residential secured for business purpose 3,579 16 34 3,178 11 34 Real estate—residential secured for personal purpose 635 1 8 447 — 6 Real estate—home equity secured for personal purpose 288 — 5 598 — 7 Total $ 33,661 $ 270 $ 213 $ 42,412 $ 346 $ 213 * Includes interest income recognized on a cash basis for nonaccrual loans of $0 thousand for the three months ended September 30, 2017 and 2016 , and interest income recognized on the accrual method for accruing impaired loans of $270 thousand and $346 thousand for the three months ended September 30, 2017 and 2016 , respectively. Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (Dollars in thousands) Average Interest Additional Average Interest Additional Commercial, financial and agricultural $ 11,030 $ 162 $ 263 $ 13,233 $ 204 $ 281 Real estate—commercial real estate 21,120 618 223 27,346 859 186 Real estate—construction 219 — 15 — — — Real estate—residential secured for business purpose 4,053 53 139 3,818 47 141 Real estate—residential secured for personal purpose 629 2 31 485 2 15 Real estate—home equity secured for personal purpose 391 — 15 408 — 18 Total $ 37,442 $ 835 $ 686 $ 45,290 $ 1,112 $ 641 * Includes interest income recognized on a cash basis for nonaccrual loans of $4 thousand and $7 thousand for the nine months ended September 30, 2017 and 2016 , respectively, and interest income recognized on the accrual method for accruing impaired loans of $831 thousand and $1.1 million for the nine months ended September 30, 2017 and 2016 , respectively. Impaired Leases The Corporation had impaired leases of $1.3 million with no related reserves at September 30, 2017 . The Corporation had no impaired leases at December 31, 2016 . See discussion in Nonperforming Loans and Leases. Troubled Debt Restructured Loans The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured: Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 (Dollars in thousands) Number Pre- Post- Related Number Pre- Post- Related Accruing Troubled Debt Restructured Loans: Total — $ — $ — $ — — $ — $ — $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose — $ — $ — $ — 1 $ 34 $ 34 $ — Total — $ — $ — $ — 1 $ 34 $ 34 $ — Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 (Dollars in thousands) Number Pre- Post- Related Number Pre- Post- Related Accruing Troubled Debt Restructured Loans: Commercial, financial and agricultural — $ — $ — $ — 1 $ 1,545 $ 1,545 $ — Real estate—commercial real estate 3 9,206 9,206 — — — — — Real estate—residential secured for business purpose — — — — 1 415 415 — Total 3 $ 9,206 $ 9,206 $ — 2 $ 1,960 $ 1,960 $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—commercial real estate 1 $ 328 $ 328 $ — — $ — $ — $ — Real estate—residential secured for personal purpose — — — — 1 34 34 — Total 1 $ 328 $ 328 $ — 1 $ 34 $ 34 $ — The Corporation grants concessions to existing borrowers primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for up to one year . The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than ninety days past due. The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and nine months ended September 30, 2017 and 2016 . Interest Only Term Maturity Date Amortization Period Extension Total Concessions (Dollars in thousands) No. of Amount No. of Amount No. of Amount No. of Amount Three Months Ended September 30, 2017 Accruing Troubled Debt Restructured Loans: Total — $ — — $ — — $ — — $ — Nonaccrual Troubled Debt Restructured Loans: Total — $ — — $ — — $ — — $ — Three Months Ended September 30, 2016 Accruing Troubled Debt Restructured Loans: Total — $ — — $ — — $ — — $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose — $ — 1 $ 34 — $ — 1 $ 34 Total — $ — 1 $ 34 — $ — 1 $ 34 Nine Months Ended September 30, 2017 Accruing Troubled Debt Restructured Loans: Real estate—commercial real estate — $ — — $ — 3 $ 9,206 3 $ 9,206 Total — $ — — $ — 3 $ 9,206 3 $ 9,206 Nonaccrual Troubled Debt Restructured Loans: Real estate—commercial real estate — $ — 1 $ 328 — $ — 1 $ 328 Total — $ — 1 $ 328 — $ — 1 $ 328 Nine Months Ended September 30, 2016 Accruing Troubled Debt Restructured Loans: Commercial, financial and agricultural — $ — — $ — 1 $ 1,545 1 $ 1,545 Real estate—residential secured for business purpose 1 415 — — — — 1 415 Total 1 $ 415 — $ — 1 $ 1,545 2 $ 1,960 Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose — $ — 1 $ 34 — $ — 1 $ 34 Total — $ — 1 $ 34 — $ — 1 $ 34 The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (Dollars in thousands) Number Recorded Number Recorded Number Recorded Number Recorded Accruing Troubled Debt Restructured Loans: Total — $ — — $ — — $ — — $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose — $ — 1 $ 34 — $ — 1 $ 34 Total — $ — 1 $ 34 — $ — 1 $ 34 The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at September 30, 2017 and December 31, 2016 : (Dollars in thousands) At September 30, 2017 At December 31, 2016 Real estate-home equity secured for personal purpose $ — $ 180 Total $ — $ 180 The Corporation held no foreclosed consumer residential real estate property at September 30, 2017 and December 31, 2016 . |