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 following table details loans and leases as of the dates indicated: Loans and Leases June 30, 2019 December 31, 2018 (dollars in thousands) Originated Acquired Total Loans and Leases Originated Acquired Total Loans and Leases Loans held for sale $ 6,333 $ — $ 6,333 $ 1,749 $ — $ 1,749 Real Estate Loans: Commercial mortgage 1,476,340 279,458 1,755,798 1,327,822 329,614 1,657,436 Home equity lines and loans 180,715 23,137 203,852 181,506 25,845 207,351 Residential mortgage 433,169 72,924 506,093 411,022 83,333 494,355 Construction 149,424 3,130 152,554 174,592 6,486 181,078 Total real estate loans 2,239,648 378,649 2,618,297 2,094,942 445,278 2,540,220 Commercial and industrial 653,904 50,263 704,167 624,643 70,941 695,584 Consumer 46,809 2,526 49,335 44,099 2,715 46,814 Leases 148,488 14,378 162,866 121,567 22,969 144,536 Total portfolio loans and leases 3,088,849 445,816 3,534,665 2,885,251 541,903 3,427,154 Total loans and leases $ 3,095,182 $ 445,816 $ 3,540,998 $ 2,887,000 $ 541,903 $ 3,428,903 Loans with fixed rates $ 1,262,209 $ 261,044 $ 1,523,253 $ 1,204,070 $ 323,604 $ 1,527,674 Loans with adjustable or floating rates 1,832,973 184,772 2,017,745 1,682,930 218,299 1,901,229 Total loans and leases $ 3,095,182 $ 445,816 $ 3,540,998 $ 2,887,000 $ 541,903 $ 3,428,903 Net deferred loan origination fees included in the above loan table $ 183 $ — $ 183 $ 2,226 $ — $ 2,226 B. The following table details the components of net investment in leases: Components of Net Investment in Leases June 30, 2019 December 31, 2018 (dollars in thousands) Originated Acquired Total Leases Originated Acquired Total Leases Minimum lease payments receivable $ 165,463 $ 15,703 $ 181,166 $ 135,313 $ 25,372 $ 160,685 Unearned lease income (23,170 ) (1,658 ) (24,828 ) (19,388 ) (3,005 ) (22,393 ) Initial direct costs and deferred fees 6,195 333 6,528 5,642 602 6,244 Total Leases $ 148,488 $ 14,378 $ 162,866 $ 121,567 $ 22,969 $ 144,536 C. The following table details nonperforming loans and leases as of the dates indicated: Nonperforming Loans and Leases June 30, 2019 December 31, 2018 (dollars in thousands) Originated Acquired Total Loans and Leases Originated Acquired Total Loans and Leases Commercial mortgage $ 3,324 $ 2,748 $ 6,072 $ 435 $ 2,133 $ 2,568 Home equity lines and loans 49 — 49 3,590 26 3,616 Residential mortgage 695 6 701 2,813 639 3,452 Commercial and industrial 3,785 710 4,495 1,786 315 2,101 Consumer 36 24 60 45 63 108 Leases 465 337 802 392 583 975 Total non-performing loans and leases $ 8,354 $ 3,825 $ 12,179 $ 9,061 $ 3,759 $ 12,820 D. Purchased Credit-Impaired Loans and Leases 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: Purchased Credit-Impaired Loans and Leases (dollars in thousands) June 30, December 31, Outstanding principal balance $ 14,512 $ 17,904 Carrying amount 10,845 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 six months ended June 30, 2019 : Roll-Forward of Accretable Discount on Purchased Credit-Impaired Loans and Leases (dollars in thousands) Accretable Discount Balance, December 31, 2018 $ 2,697 Accretion (493 ) Reclassifications from nonaccretable difference 87 Additions/adjustments — Disposals (526 ) Balance, June 30, 2019 $ 1,765 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: Payment Status of All Portfolio Loans and Leases Accruing Loans and Leases As of June 30, 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 $ 645 $ 71 $ — $ 716 $ 1,749,010 $ 1,749,726 $ 6,072 $ 1,755,798 Home equity lines and loans 60 250 — 310 203,493 203,803 49 203,852 Residential mortgage 2,404 115 — 2,519 502,873 505,392 701 506,093 Construction 1,649 — — 1,649 150,905 152,554 — 152,554 Commercial and industrial 3,072 225 — 3,297 696,375 699,672 4,495 704,167 Consumer 96 29 — 125 49,150 49,275 60 49,335 Leases 589 261 — 850 161,214 162,064 802 162,866 Total portfolio loans and leases $ 8,515 $ 951 $ — $ 9,466 $ 3,513,020 $ 3,522,486 $ 12,179 $ 3,534,665 Payment Status of All Portfolio Loans and Leases 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: Payment Status of Originated Portfolio Loans and Leases Accruing Loans and Leases As of June 30, 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 $ 645 $ 71 $ — $ 716 $ 1,472,300 $ 1,473,016 $ 3,324 $ 1,476,340 Home equity lines and loans 60 250 — 310 180,356 180,666 49 180,715 Residential mortgage 1,319 28 — 1,347 431,127 432,474 695 433,169 Construction 1,648 — — 1,648 147,776 149,424 — 149,424 Commercial and industrial 3,072 — — 3,072 647,047 650,119 3,785 653,904 Consumer 96 29 — 125 46,648 46,773 36 46,809 Leases 536 260 — 796 147,227 148,023 465 148,488 Total originated portfolio loans and leases $ 7,376 $ 638 $ — $ 8,014 $ 3,072,481 $ 3,080,495 $ 8,354 $ 3,088,849 Payment Status of Originated Portfolio Loans and Leases 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: Payment Status of Acquired Portfolio Loans and Leases Accruing Loans and Leases As of June 30, 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 $ — $ — $ — $ — $ 276,710 $ 276,710 $ 2,748 $ 279,458 Home equity lines and loans — — — — 23,137 23,137 — 23,137 Residential mortgage 1,085 87 — 1,172 71,746 72,918 6 72,924 Construction 1 — — 1 3,129 3,130 — 3,130 Commercial and industrial — 225 — 225 49,328 49,553 710 50,263 Consumer — — — — 2,502 2,502 24 2,526 Leases 53 1 — 54 13,987 14,041 337 14,378 Total acquired portfolio loans and leases $ 1,139 $ 313 $ — $ 1,452 $ 440,539 $ 441,991 $ 3,825 $ 445,816 Payment Status of Acquired Portfolio Loans and Leases 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 and six months ended June 30, 2019 and 2018 : Roll-Forward of Allowance for Loan and Lease Losses (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total Balance, $ 7,567 $ 1,003 $ 1,813 $ 1,485 $ 5,461 $ 229 $ 1,868 $ 19,426 Charge-offs (1,387 ) (314 ) (671 ) — (426 ) (231 ) (1,192 ) (4,221 ) Recoveries 17 87 3 2 54 18 433 614 Provision for loan and lease losses 2,761 267 748 (401 ) 611 237 1,140 5,363 Balance, $ 8,958 $ 1,043 $ 1,893 $ 1,086 $ 5,700 $ 253 $ 2,249 $ 21,182 Roll-Forward of Allowance for Loan and Lease Losses (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total Balance, $ 8,241 $ 1,038 $ 1,891 $ 1,186 $ 5,888 $ 328 $ 2,044 $ 20,616 Charge-offs — (267 ) (341 ) — (21 ) (126 ) (624 ) (1,379 ) Recoveries 3 87 2 1 39 7 179 318 Provision for loan and lease losses 714 185 341 (101 ) (206 ) 44 650 1,627 Balance, $ 8,958 $ 1,043 $ 1,893 $ 1,086 $ 5,700 $ 253 $ 2,249 $ 21,182 Roll-Forward of Allowance for Loan and Lease Losses (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total Balance, $ 7,550 $ 1,086 $ 1,926 $ 937 $ 5,038 $ 246 $ 742 $ 17,525 Charge-offs (16 ) (225 ) — — (750 ) (92 ) (1,348 ) (2,431 ) Recoveries 6 1 1 2 1 3 123 137 Provision for loan and lease losses 493 71 6 219 1,383 132 1,863 4,167 Balance, $ 8,033 $ 933 $ 1,933 $ 1,158 $ 5,672 $ 289 $ 1,380 $ 19,398 Roll-Forward of Allowance for Loan and Lease Losses (dollars in thousands) Commercial Mortgage Home Equity Lines and Loans Residential Mortgage Construction Commercial and Industrial Consumer Leases Total Balance, $ 7,174 $ 1,045 $ 1,898 $ 844 $ 5,361 $ 291 $ 1,049 $ 17,662 Charge-offs (16 ) (200 ) — — (467 ) (43 ) (751 ) (1,477 ) Recoveries 3 1 1 1 — 2 68 76 Provision for loan and lease losses 872 87 34 313 778 39 1,014 3,137 Balance, $ 8,033 $ 933 $ 1,933 $ 1,158 $ 5,672 $ 289 $ 1,380 $ 19,398 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 June 30, 2019 and December 31, 2018 : Allocation of Allowance by Impairment Evaluation Method - All Loans and Leases As of 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 $ — $ 153 $ 264 $ — $ — $ 43 $ — $ 460 Collectively evaluated for impairment 8,958 890 1,629 1,086 5,700 210 2,249 20,722 Purchased credit-impaired (1) — — — — — — — — Total $ 8,958 $ 1,043 $ 1,893 $ 1,086 $ 5,700 $ 253 $ 2,249 $ 21,182 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. Allocation of Allowance by Impairment Evaluation Method - All Loans and Leases As of 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 $ 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 June 30, 2019 and December 31, 2018 : Carrying Value of All Portfolio Loans and Leases by Impairment Evaluation Method As of 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 $ 6,071 $ 1,493 $ 3,736 $ — $ 4,886 $ 104 $ — $ 16,290 Collectively evaluated for impairment 1,742,871 201,843 502,355 150,107 698,257 49,231 162,866 3,507,530 Purchased credit-impaired (1) 6,856 516 2 2,447 1,024 — — 10,845 Total $ 1,755,798 $ 203,852 $ 506,093 $ 152,554 $ 704,167 $ 49,335 $ 162,866 $ 3,534,665 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. Carrying Value of All Portfolio Loans and Leases by Impairment Evaluation Method As of Commercial Home Equity Residential Construction Commercial 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 June 30, 2019 and December 31, 2018 : Allocation of Allowance by Impairment Evaluation Method - Originated Loans and Leases As of 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 $ — $ 153 $ 167 $ — $ — $ 37 $ — $ 357 Collectively evaluated for impairment 8,958 890 1,629 1,086 5,700 210 2,246 20,719 Total $ 8,958 $ 1,043 $ 1,796 $ 1,086 $ 5,700 $ 247 $ 2,246 $ 21,076 Allocation of Allowance by Impairment Evaluation Method - Originated Loans and Leases As of 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 June 30, 2019 and December 31, 2018 : Carrying Value of Originated Portfolio Loans and Leases by Impairment Evaluation Method As of Commercial Home Equity Residential Construction Commercial Consumer Leases Total (dollars in thousands) Carrying value of loans and leases: Individually evaluated for impairment $ 3,323 $ 1,493 $ 2,878 $ — $ 4,176 $ 61 $ — $ 11,931 Collectively evaluated for impairment 1,473,017 179,222 430,291 149,424 649,728 46,748 148,488 3,076,918 Total $ 1,476,340 $ 180,715 $ 433,169 $ 149,424 $ 653,904 $ 46,809 $ 148,488 $ 3,088,849 Carrying Value of Originated Portfolio Loans and Leases by Impairment Evaluation Method As of Commercial Home Equity Residential Construction Commercial 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 June 30, 2019 and December 31, 2018 : Allocation of Allowance by Impairment Evaluation Method - Acquired Loans and Leases As of Commercial Home Equity Residential Construction Commercial and Industrial Consumer Leases Total (dollars in thousands) Allowance on loans and leases: Individually evaluated for impairment $ — $ — $ 97 $ — $ — $ 6 $ — $ 103 Collectively evaluated for impairment — — — — — — 3 3 Purchased credit-impaired (1) — — — — — — — — Total $ — $ — $ 97 $ — $ — $ 6 $ 3 $ 106 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. Allocation of Allowance by Impairment Evaluation Method - Acquired Loans and Leases As of Commercial Home Equity Residential 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 June 30, 2019 and December 31, 2018 : Carrying Value of Acquired Portfolio Loans and Leases by Impairment Evaluation Method As of 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 $ 2,748 $ — $ 858 $ — $ 710 $ 43 $ — $ 4,359 Collectively evaluated for impairment 269,854 22,621 72,064 683 48,529 2,483 14,378 430,612 Purchased credit-impaired (1) 6,856 516 2 2,447 1,024 — — 10,845 Total $ 279,458 $ 23,137 $ 72,924 $ 3,130 $ 50,263 $ 2,526 $ 14,378 $ 445,816 (1) Purchased credit-impaired loans are evaluated for impairment on an individual basis. Carrying Value of Acquired Portfolio Loans and Leases by Impairment Evaluation Method As of 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. Periodic reviews of the individual loans are conducted 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. The following tables detail the carrying value of all portfolio loans and leases by portfolio segment based on the credit quality indicators used, in part, in the determination of the Allowance as of June 30, 2019 and December 31, 2018 : Credit Risk Profile by Internally Assigned Grade - All Portfolio Loans and Leases As of June 30, 2019 (dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial mortgage $ 1,725,550 $ 11,036 $ 19,212 $ — $ 1,755,798 Home equity loans and lines 203,287 — 565 — 203,852 Residential 505,251 — 842 — 506,093 Construction 142,959 — 9,595 — 152,554 Commercial and industrial 691,317 3,196 9,654 — 704,167 Consumer 49,097 — 238 — 49,335 Leases 162,064 — 802 — 162,866 Total $ 3,479,525 $ 14,232 $ 40,908 $ — $ 3,534,665 Credit Risk Profile by Internally Assigned Grade - All Portfolio 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 and 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, in part, in the determination of the Allowance as of June 30, 2019 and December 31, 2018 : Credit Risk Profile by Internally Assigned Grade - Originated Portfolio Loans and Leases As of June 30, 2019 (dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial mortgage $ 1,467,082 $ 5,600 $ 3,658 $ — $ 1,476,340 Home equity loans and lines 180,666 — 49 — 180,715 Residential 432,333 — 836 — 433,169 Construction 142,276 — 7,148 — 149,424 Commercial and industrial 643,946 2,460 7,498 — 653,904 Consumer 46,595 — 214 — 46,809 Leases 148,023 — 465 — 148,488 Total $ 3,060,921 $ 8,060 $ 19,868 $ — $ 3,088,849 Credit Risk Profile by Internally Assigned Grade - Originated Portfolio 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 and 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, in part, in the determination of the Allowance as of June 30, 2019 and December 31, 2018 : Credit Risk Profile by Internally Assigned Grade - Acquired Portfolio Loans and Leases As of June 30, 2019 (dollars in thousands) Pass Special Mention Substandard Doubtful Total Commercial mortgage $ 258,468 $ 5,436 $ 15,554 $ — $ 279,458 Home equity loans and lines 22,621 — 516 — 23,137 Residential 72,918 — 6 — 72,924 Construction 683 — 2,447 — 3,130 Commercial and industrial 47,371 736 2,156 — 50,263 Consumer 2,502 — 24 — 2,526 Leases 14,041 — 337 — 14,378 Total $ 418,604 $ 6,172 $ 21,040 $ — $ 445,816 Credit Risk Profile by Internally Assigned Grade - Acquired Portfolio 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 and 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: Troubled Debt Restructurings (dollars in thousands) June 30, 2019 December 31, 2018 TDRs included in nonperforming loans and leases $ 4,190 $ 1,217 TDRs in compliance with modified terms 5,141 9,745 Total TDRs $ 9,331 $ 10,962 The following tables present information regarding loan and lease modifications categorized as TDRs for the three and six months ended June 30, 2019 : Troubled Debt Restructurings For the Three Months Ended June 30, 2019 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Home equity loans and lines 1 $ 64 $ 64 Residential mortgages 1 40 40 Commercial and industrial 2 919 919 Leases 1 105 105 Total 5 $ 1,128 $ 1,128 Troubled Debt Restructurings For the Six Months Ended June 30, 2019 (dollars in thousands) Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Home equity loans and lines 1 $ 64 $ 64 Residential mortgages 1 40 40 Commercial and industrial 2 919 919 Leases 2 131 131 Total 6 $ 1,154 $ 1,154 The following tables presents information regarding the types of loan and lease modifications made for the three and six months ended June 30, 2019 : Troubled Debt Restructurings Number of Contracts for the Three Months Ended June 30, 2019 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 — 1 — — — Residential mortgages 1 — — — — Commercial and industrial — — 2 — — Leases — — — 1 — Total 1 1 2 1 — Troubled Debt Restructurings Number of Contracts for the Six Months Ended June 30, 2019 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 — 1 — — — Residential mortgages 1 — — — — Commercial and industrial — — 2 — — Leases — — — 2 — Total 1 1 2 2 — 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 and six months ended June 30, 2019 and balances as of December 31, 2018 (purchased credit-impaired loans are not included in the tables): Impaired Loans As of and for the Three Months Ended 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 $ 1,233 $ 1,233 $ 153 $ 1,177 $ 10 $ — Residential mortgage 1,946 1,946 264 1,950 23 — Consumer 78 91 43 78 1 — Total 3,257 3,270 460 3,205 34 — Impaired loans without related allowance (1) : Commercial mortgage 6,072 7,704 — 6,148 — — Home equity lines and loans 260 260 — 262 3 — Residential mortgage 1,790 1,790 — 1,797 15 — Commercial and industrial 4,886 5,153 — 4,916 5 — Consumer 26 29 — 26 — — Total 13,034 14,936 — 13,149 23 — Grand total $ 16,291 $ 18,206 $ 460 $ 16,354 $ 57 $ — (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. Impaired Loans As of and for the Six Months Ended 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 $ 1,233 $ 1,233 $ 153 $ 1,235 $ 22 $ — Residential mortgage 1,946 1,946 264 1,956 46 — Consumer 78 91 43 79 2 — Total $ 3,257 $ 3,270 $ 460 $ 3,270 $ 70 $ — Impaired loans without related allowance (1) : Commercial mortgage $ 6,072 $ 7,704 $ — $ 6,870 $ 20 $ — Home equity lines and loans 260 260 — 264 5 — Residential mortgage 1,790 1,790 — 1,807 31 — Commercial and industrial 4,886 5,153 — 4,940 64 — Consumer 26 29 27 — — Total $ 13,034 $ 14,936 $ — $ 13,908 $ 120 $ — Grand total $ 16,291 $ 18,206 $ 460 $ 17,178 $ 190 $ — (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. Impaired Loans As of and for the Three Months Ended Recorded Investment (2) Contractual Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Cash-Basis Interest Income Recognized (do |