Loans and Leases | Loans and Leases Summary of Major Loan and Lease Categories At June 30, 2019 (Dollars in thousands) Originated Acquired Total Commercial, financial and agricultural $ 921,182 $ 15,967 $ 937,149 Real estate-commercial 1,650,052 212,095 1,862,147 Real estate-construction 230,459 — 230,459 Real estate-residential secured for business purpose 314,629 51,011 365,640 Real estate-residential secured for personal purpose 373,792 46,017 419,809 Real estate-home equity secured for personal purpose 170,482 7,446 177,928 Loans to individuals 32,345 140 32,485 Lease financings 142,287 — 142,287 Total loans and leases held for investment, net of deferred income $ 3,835,228 $ 332,676 $ 4,167,904 Imputed interest on lease financings, included in the above table $ (15,415 ) $ — $ (15,415 ) Net deferred costs, included in the above table 4,701 — 4,701 Overdraft deposits included in the above table 127 — 127 At December 31, 2018 (Dollars in thousands) Originated Acquired Total Commercial, financial and agricultural $ 913,166 $ 24,519 $ 937,685 Real estate-commercial 1,507,579 233,625 1,741,204 Real estate-construction 215,513 — 215,513 Real estate-residential secured for business purpose 302,393 60,403 362,796 Real estate-residential secured for personal purpose 338,451 49,959 388,410 Real estate-home equity secured for personal purpose 177,523 8,728 186,251 Loans to individuals 32,617 142 32,759 Lease financings 141,956 — 141,956 Total loans and leases held for investment, net of deferred income $ 3,629,198 $ 377,376 $ 4,006,574 Imputed interest on lease financings, included in the above table $ (15,118 ) $ — $ (15,118 ) Net deferred costs, included in the above table 3,930 — 3,930 Overdraft deposits included in the above table 139 — 139 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 June 30, 2019 totaled $332.7 million , including $289.2 million of loans from the Fox Chase acquisition and $43.5 million from the Valley Green Bank acquisition. At June 30, 2019 , loans acquired with deteriorated credit quality, or acquired credit impaired loans, totaled $569 thousand representing $61 thousand from the Fox Chase acquisition and $508 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 June 30, 2019 and December 31, 2018 were as follows: (Dollars in thousands) At June 30, 2019 At December 31, 2018 Outstanding principal balance $ 677 $ 893 Carrying amount 569 695 Reserve for loan losses — — The following table presents the changes in accretable yield on acquired credit impaired loans: Six Months Ended June 30, (Dollars in thousands) 2019 2018 Beginning of period $ — $ 11 Reclassification from nonaccretable discount 215 375 Accretable yield amortized to interest income (215 ) (386 ) End of period $ — $ — 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, acquired credit impaired loans and nonaccrual loans and leases at June 30, 2019 and December 31, 2018 : Accruing Loans and Leases (Dollars in thousands) 30-59 60-89 90 Days Total Current Total Accruing Loans and Leases Acquired Credit Impaired Nonaccrual Loans and Leases Total Loans At June 30, 2019 Commercial, financial and agricultural $ 527 $ 274 $ — $ 801 $ 934,198 $ 934,999 $ — $ 2,150 $ 937,149 Real estate—commercial real estate and construction: Commercial real estate 2,057 6,190 516 8,763 1,835,439 1,844,202 206 17,739 1,862,147 Construction 500 1,158 230 1,888 228,465 230,353 — 106 230,459 Real estate—residential and home equity: Residential secured for business purpose 919 2,284 434 3,637 360,105 363,742 302 1,596 365,640 Residential secured for personal purpose 1,529 258 — 1,787 415,794 417,581 61 2,167 419,809 Home equity secured for personal purpose 206 — — 206 176,433 176,639 — 1,289 177,928 Loans to individuals 101 47 129 277 32,208 32,485 — — 32,485 Lease financings 620 195 70 885 141,302 142,187 — 100 142,287 Total $ 6,459 $ 10,406 $ 1,379 $ 18,244 $ 4,123,944 $ 4,142,188 $ 569 $ 25,147 $ 4,167,904 At December 31, 2018 Commercial, financial and agricultural $ 1,043 $ 122 $ — $ 1,165 $ 933,155 $ 934,320 $ — $ 3,365 $ 937,685 Real estate—commercial real estate and construction: Commercial real estate 4,995 1,538 — 6,533 1,716,251 1,722,784 206 18,214 1,741,204 Construction 2,163 — — 2,163 213,244 215,407 — 106 215,513 Real estate—residential and home equity: Residential secured for business purpose 2,497 728 — 3,225 357,827 361,052 426 1,318 362,796 Residential secured for personal purpose 2,334 — — 2,334 384,426 386,760 63 1,587 388,410 Home equity secured for personal purpose 305 96 — 401 184,402 184,803 — 1,448 186,251 Loans to individuals 207 29 55 291 32,468 32,759 — — 32,759 Lease financings 2,460 411 137 3,008 138,778 141,786 — 170 141,956 Total $ 16,004 $ 2,924 $ 192 $ 19,120 $ 3,960,551 $ 3,979,671 $ 695 $ 26,208 $ 4,006,574 Nonperforming Loans and Leases The following presents, by class of loans and leases, nonperforming loans and leases at June 30, 2019 and December 31, 2018 . Nonperforming loans exclude acquired credit impaired loans from Fox Chase and Valley Green. At June 30, 2019 At December 31, 2018 (Dollars in thousands) Nonaccrual Accruing Loans and Total Nonperforming Nonaccrual Accruing Loans and Total Nonperforming Commercial, financial and agricultural $ 2,150 $ — $ — $ 2,150 $ 3,365 $ 382 $ — $ 3,747 Real estate—commercial real estate and construction: Commercial real estate 17,739 — 516 18,255 18,214 — — 18,214 Construction 106 — 230 336 106 — — 106 Real estate—residential and home equity: Residential secured for business purpose 1,596 — 434 2,030 1,318 160 — 1,478 Residential secured for personal purpose 2,167 — — 2,167 1,587 — — 1,587 Home equity secured for personal purpose 1,289 55 — 1,344 1,448 — — 1,448 Loans to individuals — — 129 129 — — 55 55 Lease financings 100 — 70 170 170 — 137 307 Total $ 25,147 $ 55 $ 1,379 $ 26,581 $ 26,208 $ 542 $ 192 $ 26,942 * Includes nonaccrual troubled debt restructured loans of $2.6 million and $1.3 million at June 30, 2019 and December 31, 2018 , respectively. Credit Quality Indicators The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at June 30, 2019 and December 31, 2018 . The Corporation employs a risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose. The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with a relationship balance of less than $1 million are reviewed on a performance basis, with the primary monitored metrics being delinquency (60 days or more past due). Loans with relationships greater than $1 million are reviewed at least annually. Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly, or more frequently based on management’s discretion. 1. Pass—Loans considered satisfactory with no indications of deterioration 2. Special Mention—Potential weakness that deserves management's close attention 3. Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt 4. Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable 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 June 30, 2019 Grade: 1. Pass $ 874,098 $ 1,622,980 $ 228,421 $ 309,658 $ 3,035,157 2. Special Mention 27,036 17,773 1,932 1,705 48,446 3. Substandard 20,048 9,299 106 3,266 32,719 4. Doubtful — — — — — Total $ 921,182 $ 1,650,052 $ 230,459 $ 314,629 $ 3,116,322 At December 31, 2018 Grade: 1. Pass $ 882,736 $ 1,455,234 $ 215,407 $ 298,356 $ 2,851,733 2. Special Mention 23,287 31,791 — 721 55,799 3. Substandard 7,143 20,554 106 3,316 31,119 4. Doubtful — — — — — Total $ 913,166 $ 1,507,579 $ 215,513 $ 302,393 $ 2,938,651 The following table presents classifications for acquired loans: (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Total At June 30, 2019 Grade: 1. Pass $ 15,967 $ 199,560 $ — $ 50,446 $ 265,973 2. Special Mention — — — — — 3. Substandard — 12,535 — 565 13,100 4. Doubtful — — — — — Total $ 15,967 $ 212,095 $ — $ 51,011 $ 279,073 December 31, 2018 Grade: 1. Pass $ 24,450 $ 220,911 $ — $ 59,567 $ 304,928 2. Special Mention — — — — — 3. Substandard 69 12,714 — 836 13,619 4. Doubtful — — — — — Total $ 24,519 $ 233,625 $ — $ 60,403 $ 318,547 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 June 30, 2019 Performing $ 372,578 $ 170,172 $ 32,216 $ 142,117 $ 717,083 Nonperforming 1,214 310 129 170 1,823 Total $ 373,792 $ 170,482 $ 32,345 $ 142,287 $ 718,906 At December 31, 2018 Performing $ 337,762 $ 177,139 $ 32,562 $ 141,649 $ 689,112 Nonperforming 689 384 55 307 1,435 Total $ 338,451 $ 177,523 $ 32,617 $ 141,956 $ 690,547 The following table presents classifications for acquired loans: (Dollars in thousands) Real Estate— Real Estate— Loans to Lease Total At June 30, 2019 Performing $ 45,064 $ 6,412 $ 140 $ — $ 51,616 Nonperforming 953 1,034 — — 1,987 Total $ 46,017 $ 7,446 $ 140 $ — $ 53,603 At December 31, 2018 Performing $ 49,061 $ 7,664 $ 142 $ — $ 56,867 Nonperforming 898 1,064 — — 1,962 Total $ 49,959 $ 8,728 $ 142 $ — $ 58,829 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 six months ended June 30, 2019 and 2018 : (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Loans to Lease Unallocated Total Three Months Ended June 30, 2019 Reserve for loan and lease losses: Beginning balance $ 8,950 $ 14,981 $ 2,302 $ 3,379 $ 469 $ 1,275 $ 246 $ 31,602 Charge-offs (1,018 ) (33 ) — (4 ) (51 ) (110 ) N/A (1,216 ) Recoveries 19 — 6 7 16 90 N/A 138 Provision (recovery of provision) 1,178 530 170 136 47 (14 ) 29 2,076 Ending balance $ 9,129 $ 15,478 $ 2,478 $ 3,518 $ 481 $ 1,241 $ 275 $ 32,600 Three Months Ended June 30, 2018 Reserve for loan and lease losses: Beginning balance $ 6,942 $ 11,178 $ 1,871 $ 1,908 $ 372 $ 1,079 $ 60 $ 23,410 Charge-offs (13,048 ) — — — (79 ) (169 ) N/A (13,296 ) Recoveries 23 — 7 8 16 75 N/A 129 Provision (recovery of provision) 13,341 1,149 126 578 138 86 (9 ) 15,409 Ending balance $ 7,258 $ 12,327 $ 2,004 $ 2,494 $ 447 $ 1,071 $ 51 $ 25,652 Six Months Ended June 30, 2019 Reserve for loan and lease losses: Beginning balance $ 7,983 $ 13,903 $ 2,236 $ 3,199 $ 484 $ 1,288 $ 271 $ 29,364 Charge-offs (1,486 ) (74 ) — (15 ) (136 ) (214 ) N/A (1,925 ) Recoveries 101 91 10 12 38 148 N/A 400 Provision 2,531 1,558 232 321 95 19 4 4,760 Provision for acquired credit impaired loans — — — 1 — — — 1 Ending balance $ 9,129 $ 15,478 $ 2,478 $ 3,518 $ 481 $ 1,241 $ 275 $ 32,600 Six Months Ended June 30, 2018 Reserve for loan and lease losses: Beginning balance $ 6,742 $ 9,839 $ 1,661 $ 1,754 $ 373 $ 1,132 $ 54 $ 21,555 Charge-offs (13,649 ) (40 ) — — (171 ) (305 ) N/A (14,165 ) Recoveries 249 73 258 65 46 109 N/A 800 Provision (recovery of provision) 13,916 2,455 85 674 199 135 (3 ) 17,461 Provision for acquired credit impaired loans — — — 1 — — — 1 Ending balance $ 7,258 $ 12,327 $ 2,004 $ 2,494 $ 447 $ 1,071 $ 51 $ 25,652 N/A – Not applicable Charge-offs for the three and six months ended June 30, 2018 included a charge-off of $12.7 million for a commercial loan relationship related to fraudulent activities perpetrated by employees of a borrower. The Bank owned a participating interest which originally totaled $13.0 million in an approximately $80.0 million commercial lending facility. The charge-off represented the entire principal amount owed to the Bank. The following presents, by portfolio segment, 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 June 30, 2019 and 2018 : (Dollars in thousands) Commercial, Real Estate— Real Estate— Real Estate— Loans to Lease Unallocated Total At June 30, 2019 Reserve for loan and lease losses: Ending balance: individually evaluated for impairment $ 99 $ 1,840 $ 165 $ 335 $ — $ — N/A $ 2,439 Ending balance: collectively evaluated for impairment 9,030 13,630 2,313 3,183 481 1,241 275 30,153 Ending balance: acquired non-credit impaired loans evaluated for impairment — 8 — — — — — 8 Total ending balance $ 9,129 $ 15,478 $ 2,478 $ 3,518 $ 481 $ 1,241 $ 275 $ 32,600 Loans and leases held for investment: Ending balance: individually evaluated for impairment (1) $ 2,150 $ 17,845 $ 1,596 $ 3,511 $ — $ — $ 25,102 Ending balance: collectively evaluated for impairment 919,032 1,873,296 313,291 542,751 32,345 142,287 3,823,002 Loans measured at fair value — 1,725 — — — — 1,725 Acquired non-impaired loans 15,967 199,534 50,451 51,414 140 — 317,506 Acquired credit impaired loans — 206 302 61 — — 569 Total ending balance $ 937,149 $ 2,092,606 $ 365,640 $ 597,737 $ 32,485 $ 142,287 $ 4,167,904 At June 30, 2018 Reserve for loan and lease losses: Ending balance: individually evaluated for impairment $ 646 $ 866 $ 12 $ — $ — $ — N/A $ 1,524 Ending balance: collectively evaluated for impairment 6,612 11,420 1,951 2,494 447 1,071 51 24,046 Ending balance: acquired non-credit impaired loans evaluated for impairment — 41 41 — — — — 82 Total ending balance $ 7,258 $ 12,327 $ 2,004 $ 2,494 $ 447 $ 1,071 $ 51 $ 25,652 Loans and leases held for investment: Ending balance: individually evaluated for impairment (1) $ 6,238 $ 21,004 $ 2,132 $ 3,306 $ — $ 1,250 $ 33,930 Ending balance: collectively evaluated for impairment 875,390 1,569,475 265,283 470,994 31,048 131,872 3,344,062 Loans measured at fair value — 1,847 — — — — 1,847 Acquired non-impaired loans 44,265 259,998 70,837 62,318 143 — 437,561 Acquired credit impaired loans 267 206 460 65 — — 998 Total ending balance $ 926,160 $ 1,852,530 $ 338,712 $ 536,683 $ 31,191 $ 133,122 $ 3,818,398 (1) Includes $14.6 million and $17.9 million of acquired loans which were individually evaluated for impairment at June 30, 2019 and 2018, respectively. N/A – Not applicable The Corporation does not provide a reserve for loan loss for acquired loans unless 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. Impaired Loans (excludes Lease Financings) 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 June 30, 2019 and December 31, 2018 . The impaired loans exclude acquired credit impaired loans. At June 30, 2019 At December 31, 2018 (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid Related Impaired loans with no related reserve recorded: Commercial, financial and agricultural $ 1,980 $ 2,590 $ 2,776 $ 3,361 Real estate—commercial real estate 5,158 6,163 6,578 7,516 Real estate—construction 106 111 106 111 Real estate—residential secured for business purpose 829 1,006 1,478 1,660 Real estate—residential secured for personal purpose 1,443 1,516 863 911 Real estate—home equity secured for personal purpose 1,269 1,329 1,373 1,404 Total impaired loans with no related reserve recorded $ 10,785 $ 12,715 $ 13,174 $ 14,963 Impaired loans with a reserve recorded: Commercial, financial and agricultural $ 170 $ 170 $ 99 $ 971 $ 1,024 $ 413 Real estate—commercial real estate 12,581 13,336 1,840 11,637 12,162 675 Real estate—residential secured for business purpose 767 769 165 — — — Real estate—residential secured for personal purpose 724 724 260 724 724 252 Real estate—home equity secured for personal purpose 75 75 75 75 75 75 Total impaired loans with a reserve recorded $ 14,317 $ 15,074 $ 2,439 $ 13,407 $ 13,985 $ 1,415 Total impaired loans: Commercial, financial and agricultural $ 2,150 $ 2,760 $ 99 $ 3,747 $ 4,385 $ 413 Real estate—commercial real estate 17,739 19,499 1,840 18,215 19,678 675 Real estate—construction 106 111 — 106 111 — Real estate—residential secured for business purpose 1,596 1,775 165 1,478 1,660 — Real estate—residential secured for personal purpose 2,167 2,240 260 1,587 1,635 252 Real estate—home equity secured for personal purpose 1,344 1,404 75 1,448 1,479 75 Total impaired loans $ 25,102 $ 27,789 $ 2,439 $ 26,581 $ 28,948 $ 1,415 Impaired loans include nonaccrual loans and accruing troubled debt restructured loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the original 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. 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 an accruing troubled debt restructured loan or 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 June 30, 2019 Three Months Ended June 30, 2018 (Dollars in thousands) Average Interest Additional Average Interest Additional Commercial, financial and agricultural $ 2,509 $ 12 $ 49 $ 6,394 $ 32 $ 134 Real estate—commercial real estate 18,058 — 242 22,914 18 265 Real estate—construction 106 — 2 56 — 3 Real estate—residential secured for business purpose 1,557 — 36 1,966 5 23 Real estate—residential secured for personal purpose 1,937 — 29 889 2 33 Real estate—home equity secured for personal purpose 1,358 1 20 1,033 — 31 Total $ 25,525 $ 13 $ 378 $ 33,252 $ 57 $ 489 * Includes interest income recognized on a cash basis for nonaccrual loans of $12 thousand and $2 thousand for the three months ended June 30, 2019 and 2018 , respectively, and interest income recognized on the accrual method for accruing impaired loans of $1 thousand and $55 thousand for the three months ended June 30, 2019 and 2018 , respectively. Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (Dollars in thousands) Average Interest Additional Average Interest Additional Commercial, financial and agricultural $ 3,066 $ 17 $ 103 $ 7,090 $ 72 $ 211 Real estate—commercial real estate 18,122 3 496 20,105 190 552 Real estate—construction 106 — 3 137 — 5 Real estate—residential secured for business purpose 1,443 — 56 2,107 10 47 Real estate—residential secured for personal purpose 1,792 — 54 720 3 44 Real estate—home equity secured for personal purpose 1,384 1 43 819 — 39 Total $ 25,913 $ 21 $ 755 $ 30,978 $ 275 $ 898 * Includes interest income recognized on a cash basis for nonaccrual loans of $15 thousand and $8 thousand for the six months ended June 30, 2019 and 2018 , respectively, and interest income recognized on the accrual method for accruing impaired loans of $6 thousand and $267 thousand for the six months ended June 30, 2019 and 2018 , respectively. Impaired Leases The Corporation had no impaired leases at June 30, 2019 or December 31, 2018 . Troubled Debt Restructured Loans The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 (Dollars in thousands) Number Pre- Post- Related Number Pre- Post- Related Accruing Troubled Debt Restructured Loans: Real estate—home equity secured for personal purpose 1 $ 55 $ 55 $ — — $ — $ — $ — Total 1 $ 55 $ 55 $ — — $ — $ — $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose — $ — $ — $ — 1 $ 66 $ 66 $ — Total — $ — $ — $ — 1 $ 66 $ 66 $ — Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 (Dollars in thousands) Number Pre- Post- Related Number Pre- Post- Related Accruing Troubled Debt Restructured Loans: Real estate—home equity secured for personal purpose 1 $ 55 $ 55 $ — — $ — $ — $ — Total 1 $ 55 $ 55 $ — — $ — $ — $ — Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural* 2 $ 956 $ 956 $ — — $ — $ — $ — Real estate—commercial real estate* 1 1,313 1,313 — — — — — Real estate—residential secured for personal purpose — — — — 1 66 66 — Total 3 $ 2,269 $ 2,269 $ — 1 $ 66 $ 66 $ — * The three nonaccrual troubled debt restructured loans during the six months ended June 30, 2019 in the above table were modified via the execution of a forbearance agreement. These loans relate to one borrower and were on nonaccrual status at the time of modification. 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 six months ended June 30, 2019 and 2018 . Amortization Period Extension (Dollars in thousands) No. of Amount Three Months Ended June 30, 2019 Accruing Troubled Debt Restructured Loans: Real estate—home equity secured for personal purpose 1 $ 55 Total 1 $ 55 Nonaccrual Troubled Debt Restructured Loans: Total — $ — Three Months Ended June 30, 2018 Accruing Troubled Debt Restructured Loans: Total — $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose 1 $ 66 Total 1 $ 66 Six Months Ended June 30, 2019 Accruing Troubled Debt Restructured Loans: Real estate—home equity secured for personal purpose 1 $ 55 Total 1 $ 55 Nonaccrual Troubled Debt Restructured Loans: Commercial, financial and agricultural 2 $ 956 Real estate—commercial real estate 1 1,313 Total 3 $ 2,269 Six Months Ended June 30, 2018 Accruing Troubled Debt Restructured Loans: Total — $ — Nonaccrual Troubled Debt Restructured Loans: Real estate—residential secured for personal purpose 1 $ 66 Total 1 $ 66 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (Dollars in thousands) Number Recorded Number Recorded Number Recorded Number Recorded Accruing Troubled Debt Restructured Loans: Commercial, financial and agricultural — $ — — $ — — $ — 1 $ 953 Total — $ — — $ — — $ — 1 $ 953 Nonaccrual Troubled Debt Restructured Loans: Total — $ — — $ — — $ — — $ — 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 June 30, 2019 and December 31, 2018 : (Dollars in thousands) At June 30, 2019 At December 31, 2018 Real estate-residential secured for personal purpose $ 714 $ 563 Real estate-home equity secured for personal purpose 1,134 1,134 Total $ 1,848 $ 1,697 The Corporation held no foreclosed residential real estate property at June 30, 2019 and December 31, 2018 . Lease Financings In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)", and subsequent related updates, to revise the accounting for leases. The Corporation adopted this guidance effective January 1, 2019 on a modified retrospective basis at January 1, 2019. Additionally, the Corporation early adopted (ASU) No. 2019-01, "Codification Improvements" , as of January 1, 2019, which serves as an update to (ASU) No. 2016-02, and is effective for the first interim period within annual periods beginning after December 15, 2019, or January 1, 2020, for the Corporation. See Note 1, "Summary of Significant Accounting Policies - Accounting Pronouncements Adopted in 2019" for additional information. Lessor accounting was largely unchanged as a result of the standard. Additional disclosures required under the standard are included in the following section. The Corporation, through Univest Capital, Inc., an equipment financing business and a subsidiary of the Bank, provides lease financing to customers primarily in the form of sales-type leases with fixed payment terms and $1.00 dollar buyout clauses. A minor number of contracts are classified as either direct financing leases or operating leases. The fair value of the identified assets within sales-type and direct financing leases are equal to the carrying amount such that there is no profit or loss recorded or deferred upon lease commencement. All receivables related to the equipment financing business are recorded within lease financings as of June 30, 2019 . The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk by primarily using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease term for the majority of its lease portfolio. Lease financings are stated at net investment amount, consisting of the present value of lease payments and unguaranteed residual value, plus initial direct costs. Initial direct costs, comprised of commissions paid that would not have been incurred if the lease had not been obtained, are deferred and amortized over the life of the contract, and are presented within net interest income on leases. The following presents the schedule of minimum lease payments receivable: (Dollars in thousands) At June 30, 2019 At December 31, 2018 2019 (excluding the six months ended June 30, 2019) $ 29,479 $ 55,201 2020 49,897 43,355 2021 36,433 29,678 2022 23,877 17,687 2023 11,722 6,674 Thereafter 3,478 1,975 Total future minimum lease payments receivable 154,886 154,570 Plus: Unguaranteed residual 823 600 Plus: Initial direct costs 1,993 1,904 Less: Imputed interest (15,415 ) (15,118 ) Lease financings $ 142,287 $ 141,956 Included within the " 2019 (excluding the six months ended June 30, 2019 )" line item above as of June 30, 2019 and December 31, 2018 are $20 thousand and $0 thousand , respectively, of receivables related to an operating lease contract. For the six months ended June 30, 2019 and 2018 , the Corporation recognized $4.0 million and $3.7 million |