Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The following tables present the changes in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment for the periods indicated: Year Ended December 31, 2015 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Balance at December 31, 2014 $ 29,594 $ 15,957 $ 2,331 $ 3,359 $ 2,418 $ 53,659 Charge-offs (550 ) (3,634 ) (1,788 ) (582 ) — (6,554 ) Recoveries — 667 1,442 102 — 2,211 Provision (credit) for loan and lease losses 1,107 9,028 (1,716 ) 1,422 (2,418 ) 7,423 Balance at December 31, 2015 $ 30,151 $ 22,018 $ 269 $ 4,301 $ — $ 56,739 Year Ended December 31, 2014 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Balance at December 31, 2013 $ 23,022 $ 15,220 $ 3,924 $ 3,375 $ 2,932 $ 48,473 Charge-offs (130 ) (2,507 ) (1,163 ) (650 ) — (4,450 ) Recoveries 4 801 434 158 — 1,397 Provision (credit) for loan and lease losses 6,698 2,443 (864 ) 476 (514 ) 8,239 Balance at December 31, 2014 $ 29,594 $ 15,957 $ 2,331 $ 3,359 $ 2,418 $ 53,659 Year Ended December 31, 2013 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Balance at December 31, 2012 $ 20,018 $ 10,655 $ 5,304 $ 2,545 $ 2,630 $ 41,152 Charge-offs (88 ) (2,077 ) (1,714 ) (909 ) — (4,788 ) Recoveries 13 657 501 263 — 1,434 Provision (credit) for loan and lease losses 3,079 5,985 (167 ) 1,476 302 10,675 Balance at December 31, 2013 $ 23,022 $ 15,220 $ 3,924 $ 3,375 $ 2,932 $ 48,473 The liability for unfunded credit commitments, which is included in other liabilities, was $1.3 million , $1.3 million and $1.0 million at December 31, 2015 , 2014 and 2013 , respectively. The changes in the liability for unfunded credit commitments reflect changes in the estimate of loss exposure associated with certain unfunded credit commitments. No credit commitments were charged off against the liability account in the years ended December 31, 2015 , 2014 and 2013 . Provision for Credit Losses The provisions for credit losses are set forth below for the periods indicated: Originated Acquired Total Year Ended December 31, Year Ended December 31, Year Ended December 31, 2015 2014 2013 2015 2014 2013 2015 2014 2013 (In Thousands) Provision (credit) for loan and lease losses: Commercial real estate $ 1,459 $ 5,009 $ 2,563 $ (352 ) $ 1,689 $ 516 $ 1,107 $ 6,698 $ 3,079 Commercial 9,077 2,030 4,917 (49 ) 413 1,068 9,028 2,443 5,985 Indirect automobile (1,716 ) (864 ) (167 ) — — — (1,716 ) (864 ) (167 ) Consumer 953 417 286 469 59 1,190 1,422 476 1,476 Unallocated (2,418 ) (514 ) 302 — — — (2,418 ) (514 ) 302 Total provision for loan and lease losses 7,355 6,078 7,901 68 2,161 2,774 7,423 8,239 10,675 Unfunded credit commitments 28 238 254 — — — 28 238 254 Total provision for credit losses $ 7,383 $ 6,316 $ 8,155 $ 68 $ 2,161 $ 2,774 $ 7,451 $ 8,477 $ 10,929 Allowance for Loan and Lease Losses Methodology Management has established a methodology to determine the adequacy of the allowance for loan and lease losses that assesses the risks and losses inherent in the loan and lease portfolio. Additions to the allowance for loan and lease losses are made by charges to the provision for credit losses. Losses on loans and leases are charged off against the allowance when all or a portion of a loan or lease is considered uncollectible. Subsequent recoveries on loans previously charged off, if any, are credited to the allowance when realized. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for loan and lease losses on a quarterly basis. For purposes of determining the allowance for loan and lease losses, the Company has segmented certain loans and leases in the portfolio by product type into the following segments: (1) commercial real estate loans, (2) commercial loans and leases, (3) consumer loans. Portfolio segments are further disaggregated into classes based on the associated risks within the segments. Commercial real estate loans are divided into three classes: commercial real estate loans, multi-family mortgage loans, and construction loans. Commercial loans and leases are divided into three classes: commercial loans which includes taxi medallion loans, equipment financing, and loans to condominium associations. Consumer loans are divided into four classes: residential mortgage loans, home equity loans, indirect automobile loans, and other consumer loans. A formula-based credit evaluation approach is applied to each group, coupled with an analysis of certain loans for impairment. For each class of loan, Management makes significant judgments in selecting the estimation method that fits the credit characteristics of its class and portfolio segment as set forth below. Also refer to Note 1, "Basis of Presentation," in the consolidated financial statements for more information on the Company's allowance of loan and lease losses methodology. The general allowance related to loans collectively evaluated for impairment is determined using a formula-based approach utilizing the risk ratings of individual credits and loss factors derived from historic portfolio loss rates, which include estimates of incurred losses over an estimated loss emergence period (“LEP”). The LEP was generated utilizing a charge-off look-back analysis which studied the time from the first indication of elevated risk of repayment (or other early event indicating a problem) to eventual charge-off to support the LEP considered in the allowance calculation. This reserving methodology established the approximate number of months of LEP that represents incurred losses for each portfolio. In addition to quantitative measures, relevant qualitative factors include, but are not limited to: (1) levels and trends in past due and impaired loans, (2) levels and trends in charge-offs, (3) changes in underwriting standards, policy exceptions, and credit policy, (4) experience of lending management and staff, (5) economic trends, (6) industry conditions, (7) effects of changes in credit concentrations, (8) interest rate environment, and (9) regulatory and other changes. The general allowance related to the acquired loans collectively evaluated for impairment is determined based upon the degree, if any, of deterioration in the pooled loans subsequent to acquisition. The qualitative factors used in the determination are the same as those used for originated loans. During the third quarter of 2015, the Company enhanced and refined its general allowance methodology to provide further quantification of probable losses in the portfolio. Under the enhanced methodology, Management combined the historical loss histories of the Banks to generate a single set of ratios. Management believes it is appropriate to aggregate the ratios as the Banks share common environmental factors, operate in similar geographic markets, and utilize common underwriting standards in accordance with the Company's Credit Policy. In prior periods, a historical loss history applicable to each Bank was used. Management employed a similar analysis for the consolidation of the qualitative factors as it did for the quantitative factors. Again, Management believes the realignment of the existing nine qualitative factors used at each of the Banks into a single group of factors for use across the Company is appropriate based on the commonality of environmental factors, markets and underwriting standards among the Banks. In prior periods each of the Banks utilized a set of qualitative factors applicable to each Bank. The Company’s December 31, 2015 allowance calculation included a further segmentation of the commercial loans and leases to reflect the increased risk in the Company’s taxi medallion portfolio. As of December 31, 2015 , this portfolio is approximately $35.8 million . Based on industry conditions, Management established a specific loss factor for this portfolio that best represents the changing risks associated with it. Based on the refinements to the Company’s allowance methodology discussed above, Management determined that the potential risks anticipated by the unallocated allowance are now incorporated into the allowance methodology, making the unallocated allowance unnecessary. In prior periods, the unallocated allowance was used to recognize the estimated risk associated with the allocated general and specific allowances. It incorporated Management’s evaluation of existing conditions that were not included in the allocated allowance determinations and provided for losses that arise outside of the ordinary course of business. Specific valuation allowances are established for impaired originated loans with book values greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent impaired loans, for any excess of a loan's book balance and the fair value of its underlying collateral. Specific valuation allowances are established for acquired loans with deterioration in the discounted present value of expected future cash flows since acquisitions or, in the case of collateral dependent impaired loans, for any increase in the excess of a loan's book balance greater than the fair value of its underlying collateral. A specific valuation allowance for losses on TDR loans is determined by comparing the net carrying amount of the troubled debt restructured loan with the restructured loan's cash flows discounted at the original effective rate. Impaired loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. As of December 31, 2015 , Management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on probable losses in the Company’s loan portfolios. The general allowance for loan and lease losses was $53.1 million as of December 31, 2015 , compared to $50.1 million as of December 31, 2014 . The general portion of the allowance for loan and lease losses increased by $3.0 million during the year ended December 31, 2015 , as a result of growth in the commercial real estate and commercial and industrial portfolios partially offset by the decrease in the indirect auto portfolios, which resulted in a release of $1.9 million in the general allowance for loan and lease losses in the first quarter of 2015. The specific allowance for loan and lease losses was $3.6 million as of December 31, 2015 , compared to $1.2 million as of December 31, 2014 . The specific allowance increased by $2.5 million during the year ended December 31, 2015 , primarily due to one commercial relationship which was downgraded during the year ended December 31, 2015 . The changes to the methodology described above resulted in a reallocation of reserve from unallocated to specific loan segments. As such, the reserve for unallocated allowance for loan and lease losses as of December 31, 2015 was reduced to zero , compared to $2.4 million as of December 31, 2014 . Credit Quality Assessment At the time of loan origination, a rating is assigned based on the capacity to pay and general financial strength of the borrower, the value of assets pledged as collateral, and the evaluation of third party support such as a guarantor. The Company continually monitors the quality of the loan portfolio using all available information. The officer responsible for handling each loan is required to initiate changes to risk ratings when changes in facts and circumstances occur that warrant an upgrade or downgrade in a loan rating. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, impaired, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower's ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a troubled debt restructuring. The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For all loans, the Company utilizes an eight-grade loan rating system, which assigns a risk rating to each borrower based on a number of quantitative and qualitative factors associated with a loan transaction. Factors considered include industry and market conditions; position within the industry; earnings trends; operating cash flow; asset/liability values; debt capacity; guarantor strength; management and controls; financial reporting; collateral; and other considerations. In addition, the Company's independent loan review group evaluates the credit quality and related risk ratings in all loan portfolios. The results of these reviews are reported to the Risk Committee of the Board of Directors on a periodic basis and annually to the Board of Directors. For the consumer loans, the Company heavily relies on payment status for calibrating credit risk. The ratings categories used for assessing credit risk in the commercial real estate, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes are defined as follows: 1 -4 Rating—Pass Loan rating grades "1" through "4" are classified as "Pass," which indicates borrowers are performing in accordance with the terms of the loan and are less likely to result in loss due to the capacity of the borrower to pay and the adequacy of the value of assets pledged as collateral. 5 Rating—Other Assets Especially Mentioned ("OAEM") Borrowers exhibit potential credit weaknesses or downward trends deserving Management's attention. If not checked or corrected, these trends will weaken the Company's asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. 6 Rating—Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Substandard loans may be inadequately protected by the current net worth and paying capacity of the obligors or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy. Although no loss of principal is envisioned, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. 7 Rating—Doubtful Borrowers exhibit well-defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. 8 Rating—Definite Loss Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. Assets rated as "OAEM," "substandard" or "doubtful" based on criteria established under banking regulations are collectively referred to as "criticized" assets. Credit Quality Information The following tables present the recorded investment in loans in each class as of December 31, 2015 by credit quality indicator. At December 31, 2015 Commercial Real Estate Multi- Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer (In Thousands) Originated: Loan rating: Pass $ 1,668,891 $ 619,786 $ 129,534 $ 562,615 $ 709,381 $ 59,875 $ 12,017 OAEM 12,781 788 208 9,976 804 — — Substandard 780 291 — 1,714 1,414 — 22 Doubtful 2,096 — — 2,294 1,389 — — Total originated 1,684,548 620,865 129,742 576,599 712,988 59,875 12,039 Acquired: Loan rating: Pass 182,377 35,785 580 11,959 8,902 — 131 OAEM 1,202 612 — 902 — — — Substandard 7,066 1,218 — 3,071 — — — Doubtful 399 — — — — — — Total acquired 191,044 37,615 580 15,932 8,902 — 131 Total loans $ 1,875,592 $ 658,480 $ 130,322 $ 592,531 $ 721,890 $ 59,875 $ 12,170 As of December 31, 2015 , there were no loans categorized as definite loss. At December 31, 2015 Indirect Automobile ($ In Thousands) Originated: Credit score: Over 700 $ 5,435 39.7 % 661-700 1,965 14.4 % 660 and below 6,217 45.5 % Data not available 61 0.4 % Total loans $ 13,678 100.0 % At December 31, 2015 Residential Mortgage Home Equity ($ In Thousands) ($ In Thousands) Originated: Loan-to-value ratio: Less than 50% $ 118,628 19.2 % $ 131,584 41.8 % 50% - 69% 214,390 34.8 % 51,492 16.4 % 70% - 79% 173,774 28.2 % 32,916 10.5 % 80% and over 17,808 2.9 % 18,082 5.7 % Data not available 3,246 0.5 % 634 0.2 % Total originated 527,846 85.6 % 234,708 74.6 % Acquired: Loan-to-value ratio: Less than 50% 18,857 3.1 % 48,563 15.4 % 50%—69% 32,986 5.3 % 20,623 6.6 % 70%—79% 17,883 2.9 % 7,144 2.3 % 80% and over 14,011 2.3 % 2,650 0.8 % Data not available 4,866 0.8 % 865 0.3 % Total acquired 88,603 14.4 % 79,845 25.4 % Total loans $ 616,449 100.0 % $ 314,553 100.0 % The following tables present the recorded investment in loans in each class as of December 31, 2014 by credit quality indicator. At December 31, 2014 Commercial Real Estate Multi- Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer (In Thousands) Originated: Loan rating: Pass $ 1,402,121 $ 574,972 $ 146,074 $ 447,778 $ 583,340 $ 51,593 $ 11,540 OAEM 22,491 1,242 — 12,193 932 — — Substandard 1,009 — — 1,671 2,338 — 40 Doubtful — — — 1,088 886 — — Total originated 1,425,621 576,214 146,074 462,730 587,496 51,593 11,580 Acquired: Loan rating: Pass 237,439 60,837 1,709 43,925 13,795 — 167 OAEM 8,351 713 230 1,852 — — — Substandard 8,250 1,942 — 5,424 133 — — Doubtful 421 — — 146 — — — Total acquired 254,461 63,492 1,939 51,347 13,928 — 167 Total loans $ 1,680,082 $ 639,706 $ 148,013 $ 514,077 $ 601,424 $ 51,593 $ 11,747 As of December 31, 2014 , there were no loans categorized as definite loss. At December 31, 2014 Indirect Automobile ($ In Thousands) Originated: Credit score: Over 700 $ 262,160 82.7 % 661-700 43,422 13.7 % 660 and below 9,927 3.1 % Data not available 1,478 0.5 % Total loans $ 316,987 100.0 % At December 31, 2014 Residential Mortgage Home Equity ($ In Thousands) ($ In Thousands) Originated: Loan-to-value ratio: Less than 50% $ 105,342 18.4 % $ 113,541 39.5 % 50%—69% 179,319 31.4 % 35,660 12.4 % 70%—79% 166,467 29.1 % 27,123 9.4 % 80% and over 19,335 3.4 % 4,195 1.5 % Data not available 1,615 0.3 % 1,061 0.4 % Total originated 472,078 82.6 % 181,580 63.2 % Acquired: Loan-to-value ratio: Less than 50% 19,574 3.4 % 70,293 24.5 % 50%—69% 35,131 6.2 % 22,581 7.9 % 70%—79% 22,972 4.0 % 10,569 3.7 % 80% and over 16,268 2.8 % 1,178 0.4 % Data not available 5,897 1.0 % 857 0.3 % Total acquired 99,842 17.4 % 105,478 36.8 % Total loans $ 571,920 100.0 % $ 287,058 100.0 % The following table presents information regarding foreclosed residential real estate property at the dates indicated: At December 31, 2015 At December 31, 2014 (In Thousands) Foreclosed residential real estate property held by the creditor $ 362 $ 410 Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure 298 — Age Analysis of Past Due Loans and Leases The following tables present an age analysis of the recorded investment in total loans and leases as of December 31, 2015 and 2014 . At December 31, 2015 Past Due Loans and Leases Past Due Greater Than 90 Days and Accruing 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Nonaccrual Loans and Leases (In Thousands) Originated: Commercial real estate loans: Commercial real estate $ 1,782 $ — $ 2,097 $ 3,879 $ 1,680,669 $ 1,684,548 $ — $ 2,876 Multi-family mortgage — — 16 16 620,849 620,865 16 291 Construction 652 — — 652 129,090 129,742 — — Total commercial real estate loans 2,434 — 2,113 4,547 2,430,608 2,435,155 16 3,167 Commercial loans and leases: Commercial 4,578 1,007 2,368 7,953 568,646 576,599 24 3,586 Equipment financing 1,681 595 2,143 4,419 708,569 712,988 77 2,610 Condominium association 205 124 — 329 59,546 59,875 — — Total commercial loans and leases 6,464 1,726 4,511 12,701 1,336,761 1,349,462 101 6,196 Indirect automobile 1,058 335 106 1,499 12,179 13,678 — 675 Consumer loans: Residential mortgage 1,384 — 229 1,613 526,233 527,846 — 1,873 Home equity 390 237 9 636 234,072 234,708 — 319 Other consumer 19 2 25 46 11,993 12,039 — 29 Total consumer loans 1,793 239 263 2,295 772,298 774,593 — 2,221 Total originated loans and leases $ 11,749 $ 2,300 $ 6,993 $ 21,042 $ 4,551,846 $ 4,572,888 $ 117 $ 12,259 At December 31, 2015 Past Due Loans and Leases Past Due Greater Than 90 Days and Accruing 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Nonaccrual Loans and Leases (In Thousands) Acquired: Commercial real estate loans: Commercial real estate $ 1,336 $ 369 $ 7,588 $ 9,293 $ 181,751 $ 191,044 $ 4,982 $ 2,606 Multi-family mortgage — — 1,077 1,077 36,538 37,615 1,077 — Construction — — — — 580 580 — — Total commercial real estate loans 1,336 369 8,665 10,370 218,869 229,239 6,059 2,606 Commercial loans and leases: Commercial 351 23 2,967 3,341 12,591 15,932 325 2,678 Equipment financing — — — — 8,902 8,902 — — Total commercial loans and leases 351 23 2,967 3,341 21,493 24,834 325 2,678 Consumer loans: Residential mortgage 326 216 2,399 2,941 85,662 88,603 2,047 352 Home equity 1,012 386 460 1,858 77,987 79,845 142 1,438 Other consumer — — — — 131 131 — — Total consumer loans 1,338 602 2,859 4,799 163,780 168,579 2,189 1,790 Total acquired loans and leases $ 3,025 $ 994 $ 14,491 $ 18,510 $ 404,142 $ 422,652 $ 8,573 $ 7,074 Total loans and leases $ 14,774 $ 3,294 $ 21,484 $ 39,552 $ 4,955,988 $ 4,995,540 $ 8,690 $ 19,333 At December 31, 2014 Past Due Loans and Leases Past Due Greater Than 90 Days and Accruing 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Nonaccrual Loans and Leases (In Thousands) Originated: Commercial real estate loans: Commercial real estate $ 1,631 $ 416 $ 160 $ 2,207 $ 1,423,414 $ 1,425,621 $ — $ 1,009 Multi-family mortgage 385 — — 385 575,829 576,214 — — Construction — — — — 146,074 146,074 — — Total commercial real estate loans 2,016 416 160 2,592 2,145,317 2,147,909 — 1,009 Commercial loans and leases: Commercial 758 876 1,499 3,133 459,597 462,730 2 2,722 Equipment financing 1,534 138 2,392 4,064 583,432 587,496 — 3,214 Condominium association 501 — — 501 51,092 51,593 — — Total commercial loans and leases 2,793 1,014 3,891 7,698 1,094,121 1,101,819 2 5,936 Indirect automobile 4,635 923 166 5,724 311,263 316,987 — 645 Consumer loans: Residential mortgage — — 501 501 471,577 472,078 — 1,340 Home equity 75 52 129 256 181,324 181,580 — 161 Other consumer 17 5 30 52 11,528 11,580 — 41 Total consumer loans 92 57 660 809 664,429 665,238 — 1,542 Total originated loans and leases $ 9,536 $ 2,410 $ 4,877 $ 16,823 $ 4,215,130 $ 4,231,953 $ 2 $ 9,132 At December 31, 2014 Past Due Loans and Leases Past Due Greater Than 90 Days and Accruing 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Nonaccrual Loans and Leases (In Thousands) Acquired: Commercial real estate loans: Commercial real estate $ 989 $ 3,705 $ 2,387 $ 7,081 $ 247,380 $ 254,461 $ 2,387 $ — Multi-family mortgage 195 729 363 1,287 62,205 63,492 363 — Construction — — — — 1,939 1,939 — — Total commercial real estate loans 1,184 4,434 2,750 8,368 311,524 319,892 2,750 — Commercial loans and leases: Commercial 712 488 3,033 4,233 47,114 51,347 624 2,474 Equipment financing 2 52 66 120 13,808 13,928 73 9 Total commercial loans and leases 714 540 3,099 4,353 60,922 65,275 697 2,483 Consumer loans: Residential mortgage — — 2,715 2,715 97,127 99,842 2,372 342 Home equity 1,005 733 923 2,661 102,817 105,478 187 1,757 Other consumer — — — — 167 167 — — Total consumer loans 1,005 733 3,638 5,376 200,111 205,487 2,559 2,099 Total acquired loans and leases $ 2,903 $ 5,707 $ 9,487 $ 18,097 $ 572,557 $ 590,654 $ 6,006 $ 4,582 Total loans and leases $ 12,439 $ 8,117 $ 14,364 $ 34,920 $ 4,787,687 $ 4,822,607 $ 6,008 $ 13,714 Commercial Real Estate Loans —As of December 31, 2015 , loans outstanding in the three classes within this segment expressed as a percentage of total loans and leases outstanding were as follows: commercial real estate loans -- 37.5% ; multi-family mortgage loans -- 13.2% ; and construction loans -- 2.6% . Loans in this portfolio that are on nonaccrual status and/or risk-rated "substandard" or worse are evaluated on an individual loan basis for impairment. For non-impaired commercial real estate loans, loss factors are applied to outstanding loans by risk rating for each of the three classes in the portfolio. The factors applied are based primarily on historic loan loss experience and an assessment of internal and external factors and other relevant information. Commercial Loans and Leases —As of December 31, 2015 , loans and leases outstanding in the three classes within this segment expressed as a percent of total loans and leases outstanding were as follows: commercial loans and leases -- 11.9% ; equipment financing loans -- 14.5% ; and loans to condominium associations -- 1.2% . Loans and leases in this portfolio that are on nonaccrual status and/or risk-rated "substandard" or worse are evaluated on an individual basis for impairment. For non-impaired commercial loans and leases, loss factors are applied to outstanding loans by risk rating for each of the three classes in the portfolio. Consumer Loans —As of December 31, 2015 , loans outstanding within the four classes within this segment expressed as a percent of total loans and leases outstanding were as follows: residential mortgage loans -- 12.3% , home equity loans -- 6.3% , indirect automobile loans -- 0.3% , and other consumer loans -- 0.2% . Significant risk characteristics related to the residential mortgage and home equity loan portfolios are the geographic concentration of the properties financed within selected communities in the greater Boston and Providence metropolitan areas. The payment status and loan-to-value ratio are the primary credit quality indicator used for residential mortgage loans and home equity loans. Generally, loans are not made when the loan-to-value ratio exceeds 80% unless private mortgage insurance is obtained and/or there is a financially strong guarantor. Consumer loans that become 90 days or more past due, or are placed on nonaccrual regardless of past due status, are reviewed on an individual basis for impairment by assessing the net realizable value of underlying collateral and the economic condition of the borrower. Determination of the allowance for loan and lease losses for indirect automobile loans is based primarily on payment status and historical loss rates. Impaired Loans and Leases A loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. The Company has defined the population of impaired loans to include nonaccrual loans and troubled debt restructured loans. When the ultimate collectability of the total principal of an impaired loan or lease is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan or lease is not in doubt and the loan or lease is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method. The following tables include the recorded investment and unpaid principal balances of impaired loans and leases with the related allowance amount, if applicable, for the originated and acquired loan and lease portfolios at the dates indicated. Also presented are the average recorded investments in the impaired loans and leases and the related amount of interest recognized during the period that the impaired loans were impaired. At December 31, 2015 At December 31, 2014 Recorded (1) Unpaid Related Recorded Investment (2) Unpaid Related (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 2,758 $ 2,756 $ — $ 2,751 $ 2,748 $ — Commercial 14,097 14,074 — 13,440 13,421 — Consumer 4,582 4,575 — 3,055 3,048 — Total originated with no related allowance recorded 21,437 21,405 — 19,246 19,217 — With an allowance recorded: Commercial real estate 6,150 6,150 2,167 4,119 4,119 108 Commercial 2,215 2,213 1,202 2,019 2,011 768 Consumer — — — 176 176 10 Total originated with an allowance recorded 8,365 8,363 3,369 6,314 6,306 886 Total originated impaired loans and leases 29,802 29,768 3,369 25,560 25,523 886 Acquired: With no related allowance recorded: Commercial real estate 7,035 7,035 — 9,413 9,428 — Commercial 4,053 4,052 — 6,049 6,047 — Consumer 7,549 7,565 — 6,688 6,688 — Total acquired with no related allowance recorded 18,637 18,652 — 22,150 22,163 — With an allowance recorded: Commercial real estate 2,606 2,606 148 244 244 22 Commercial 486 486 112 478 478 214 Consumer 174 174 9 225 225 41 Total acquired with an allowance recorded 3,266 3,266 269 947 947 277 Total acquired impaired loans and leases 21,903 21,918 269 23,097 23,110 277 Total impaired loans and leases $ 51,705 $ 51,686 $ 3,638 $ 48,657 $ 48,633 $ 1,163 (1) Includes originated and acquired nonaccrual loans of $9.3 million and $7.1 million , respectively as of December 31, 2015 . (2) Includes originated and acquired nonaccrual loans of $7.1 million and $4.6 million , respectively as of December 31, 2014 . Year Ended December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 3,999 $ 86 $ 2,786 $ 102 $ 2,184 $ 92 Commercial 15,143 641 11,840 343 4,257 144 Consumer 4,267 65 3,166 42 1,077 30 Total originated with no related allowance recorded 23,409 792 17,792 487 7,518 266 With an allowance recorded: Commercial real estate 5,132 197 3,223 69 1,464 43 Commercial 5,650 10 2,285 51 1,781 29 Consumer 84 — 458 15 3,210 97 Total originated with an allowance recorded 10,866 207 5,966 135 6,455 169 Total originated impaired loans and leases 34,275 999 23,758 622 13,973 435 Acquired: With no related allowance recorded: Commercial real estate 9,200 125 10,884 350 9,639 251 Commercial 4,428 65 6,875 122 5,205 129 Consumer 7,837 62 6,701 28 1,333 20 Total acquired with no related allowance recorded 21,465 252 24,460 500 16,177 400 With an allowance recorded: Commercial real estate 713 — 942 76 2,765 42 Commercial 638 — 631 15 577 5 Consumer 249 8 281 3 — — Total acquired with an allowance recorded 1,600 8 1,854 94 3,342 47 Total acquired impaired loans and leases 23,065 260 26,314 594 19,519 447 Total impaired loans and leases $ 57,340 $ 1,259 $ 50,072 $ 1,216 $ 33,492 $ 882 The following tables present information regarding impaired and non-impaired loans and leases at the dates indicated: At December 31, 2015 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Allowance for Loan and Lease Losses: Originated: Individually evaluated for impairment $ 2,167 $ 1,202 $ — $ — $ — $ 3,369 Collectively evaluated for impairment 26,857 20,545 269 3,947 — 51,618 Total originated loans and leases 29,024 21,747 269 3,947 — 54,987 Acquired: Individually evaluated for impairment 148 112 — 9 — 269 Collectively evaluated for impairment 333 71 — 45 — 449 Acquired with deteriorated credit quality 646 88 — 300 — 1,034 Total acquired loans and leases 1,127 271 — 354 — 1,752 Total allowance for loan and lease losses $ 30,151 $ 22,018 $ 269 $ 4,301 $ — $ 56,739 Loans and Leases: Originated: Individually evaluated for impairment $ 8,907 $ 15,806 $ — $ 4,471 $ — $ 29,184 Collectively evaluated for impairment 2,426,248 1,333,656 13,678 770,122 — 4,543,704 Total originated loans and leases 2,435,155 1,349,462 13,678 774,593 — 4,572,888 Acquired: Individually evaluated for impairment 3,188 4,090 — 2,606 — 9,884 Collectively evaluated for impairment 63,857 12,081 — 105,146 — 181,084 Acquired with deteriorated credit quality 162,194 8,663 — 60,827 — 231,684 Total acquired loans and leases 229,239 24,834 — 168,579 — 422,652 Total loans and leases $ 2,664,394 $ 1,374,296 $ 13,67 |