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, 2017 Commercial Real Estate Commercial Consumer Total (In Thousands) Balance at December 31, 2016 $ 27,645 $ 20,906 $ 5,115 $ 53,666 Charge-offs (494 ) (14,914 ) (403 ) (15,811 ) Recoveries 476 1,158 319 1,953 (Credit) provision for loan and lease losses (515 ) 19,183 116 18,784 Balance at December 31, 2017 $ 27,112 $ 26,333 $ 5,147 $ 58,592 Year Ended December 31, 2016 Commercial Real Estate Commercial Consumer Total (In Thousands) Balance at December 31, 2015 $ 30,151 $ 22,018 $ 4,570 $ 56,739 Charge-offs (2,169 ) (10,516 ) (1,982 ) (14,667 ) Recoveries — 642 750 1,392 (Credit) provision for loan and lease losses (337 ) 8,762 1,777 10,202 Balance at December 31, 2016 $ 27,645 $ 20,906 $ 5,115 $ 53,666 Year Ended December 31, 2015 Commercial Real Estate Commercial Consumer Unallocated Total (In Thousands) Balance at December 31, 2014 $ 29,594 $ 15,957 $ 5,690 $ 2,418 $ 53,659 Charge-offs (550 ) (3,634 ) (2,370 ) — (6,554 ) Recoveries — 667 1,544 — 2,211 Provision (credit) for loan and lease losses 1,107 9,028 (294 ) (2,418 ) 7,423 Balance at December 31, 2015 $ 30,151 $ 22,018 $ 4,570 $ — $ 56,739 The liability for unfunded credit commitments, which is included in other liabilities, was $1.7 million , and $1.5 million , at December 31, 2017 , and 2016 , 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, 2017 , and 2016 . 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, 2017 2016 2015 2017 2016 2015 2017 2016 2015 (In Thousands) Provision (credit) for loan and lease losses: Commercial real estate $ (343 ) $ (750 ) $ 1,459 $ (172 ) $ 413 $ (352 ) $ (515 ) $ (337 ) $ 1,107 Commercial 18,899 8,469 9,077 284 293 (49 ) 19,183 8,762 9,028 Consumer 273 1,263 (763 ) (157 ) 514 469 116 1,777 (294 ) Unallocated — — (2,418 ) — — — — — (2,418 ) Total provision for loan and lease losses 18,829 8,982 7,355 (45 ) 1,220 68 18,784 10,202 7,423 Unfunded credit commitments 204 151 28 — — — 204 151 28 Total provision (credit) for credit losses $ 19,033 $ 9,133 $ 7,383 $ (45 ) $ 1,220 $ 68 $ 18,988 $ 10,353 $ 7,451 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 three classes: residential mortgage loans, home equity 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 to the three months ended September 30, 2015, 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 to the three months ended September 30, 2015, each of the Banks utilized a set of qualitative factors applicable to each Bank. 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, 2017 , management believes that the methodology for calculating the allowance provides a reasonable basis for determining and reporting on probable losses in the Company’s loan portfolios. As of December 31, 2017 , the Company had a portfolio of approximately $19.7 million in loans secured by taxi medallions issued by the cities of Boston and Cambridge. As of December 31, 2016 , this portfolio was approximately $31.1 million . Application-based mobile ride services, such as Uber and Lyft, have generated increased competition in the transportation sector, resulting in a reduction in taxi utilization and, as a result, a reduction in the collateral value and credit quality of taxi medallion loans. This has increased the likelihood that loans secured by taxi medallions may default, or that the borrowers may be unable to repay these loans at maturity, resulting in an increase in past due loans, troubled debt restructurings, and charge-offs. Therefore, beginning with the three months ended September 30, 2015, the Company’s allowance calculation included an enhanced segmentation of the commercial loans and leases to reflect the increased risk in the Company’s taxi medallion portfolio. This allowance calculation segmentation represents management’s estimations of the special risks associated with the taxi portfolio. As of December 31, 2017 , the Company had an allowance for loan and lease losses associated with taxi medallion loans of $3.8 million of which $2.7 million were specific reserves and $1.1 million was a general reserve. As of December 31, 2016 , the Company had a reserve for loan and lease losses associated with taxi medallion loans of $1.3 million of which $0.1 million were specific reserves and $1.2 million was a general reserve.The increase in the allowance for loan and leases associated with taxi medallion loans was primarily driven by the increase in specific reserves due to changes in the underlying collateral value of taxi medallions and the increase in general reserve due to the increase in the historical loss factor applied to the taxi medallion loans. The total troubled debt restructured loans and leases secured by taxi medallions decreased by $2.4 million from $6.1 million at December 31, 2016 to $3.7 million at December 31, 2017 . The total loans and leases secured by taxi medallions that were placed on nonaccrual decreased to $7.8 million at December 31, 2017 from $13.4 million at December 31, 2016 . However, further declines in demand for taxi services or further deterioration in the value of taxi medallions may result in higher delinquencies and losses beyond that provided for in the allowance for loan and lease losses. The general allowance for loan and lease losses was $55.5 million as of December 31, 2017 , compared to $53.5 million as of December 31, 2016 . The general portion of the allowance for loan and lease losses increased by $2.0 million during the year ended December 31, 2017 , as a result of the continued growth in the Company's loan portfolios, the increase in historical loss factors applied to the commercial loan portfolio and the improvement of credit risk ratings of loans within the commercial real estate and commercial portfolios. The specific allowance for loan and lease losses was $3.1 million as of December 31, 2017 , compared to $0.2 million as of December 31, 2016 . The specific allowance increased by $3.0 million during the year ended December 31, 2017 , primarily due to changes in the underlying collateral value of taxi medallions during the year ended December 31, 2017 . 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 periodically 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, 2017 by credit quality indicator. At December 31, 2017 Commercial Real Estate Multi- Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer Total (In Thousands) Originated: Loan rating: Pass $ 2,054,376 $ 735,313 $ 139,278 $ 670,265 $ 850,006 $ 52,619 $ 14,628 $ 4,516,485 OAEM 8,889 — — 7,691 3,630 — — 20,210 Substandard 5,926 608 860 17,681 5,012 — 39 30,126 Doubtful 201 — — 1,188 3,326 — — 4,715 Total originated 2,069,392 735,921 140,138 696,825 861,974 52,619 14,667 4,571,536 Acquired: Loan rating: Pass 94,244 24,459 — 6,643 4,501 — 104 129,951 OAEM 9,839 — — 265 — — 1 10,105 Substandard 1,494 290 — 1,271 13 — — 3,068 Doubtful — — — — — — — — Total acquired 105,577 24,749 — 8,179 4,514 — 105 143,124 Total loans $ 2,174,969 $ 760,670 $ 140,138 $ 705,004 $ 866,488 $ 52,619 $ 14,772 $ 4,714,660 As of December 31, 2017 , there were no loans categorized as definite loss. At December 31, 2017 Residential Mortgage Home Equity ($ In Thousands) Originated: Loan-to-value ratio: Less than 50% $ 153,373 23.2 % $ 148,137 41.6 % 50% - 69% 265,328 40.2 % 75,099 21.1 % 70% - 79% 168,272 25.5 % 63,742 17.9 % 80% and over 16,547 2.5 % 27,122 7.6 % Data not available* 1,377 0.2 % 89 — % Total originated 604,897 91.6 % 314,189 88.2 % Acquired: Loan-to-value ratio: Less than 50% 16,521 2.5 % 25,312 7.1 % 50%—69% 19,182 2.9 % 13,883 3.9 % 70%—79% 10,507 1.6 % 943 0.3 % 80% and over 7,893 1.2 % 582 0.2 % Data not available* 1,065 0.2 % 1,045 0.3 % Total acquired 55,168 8.4 % 41,765 11.8 % Total loans $ 660,065 100.0 % $ 355,954 100.0 % _______________________________________________________________________________ * Represents in process general ledger accounts for which data are not available. The following tables present the recorded investment in loans in each class as of December 31, 2016 by credit quality indicator. At December 31, 2016 Commercial Real Estate Multi- Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer Total (In Thousands) Originated: Loan rating: Pass $ 1,899,162 $ 700,046 $ 136,607 $ 583,940 $ 786,050 $ 60,122 $ 12,018 $ 4,177,945 OAEM 1,538 — 178 8,675 824 — — 11,215 Substandard 6,288 1,404 — 28,595 4,848 — 12 41,147 Doubtful 266 — — 75 1,980 — — 2,321 Total originated 1,907,254 701,450 136,785 621,285 793,702 60,122 12,030 4,232,628 Acquired: Loan rating: Pass 131,850 29,153 214 10,312 6,158 — 128 177,815 OAEM 1,408 270 — 249 — — — 1,927 Substandard 9,768 313 — 3,017 — — — 13,098 Doubtful 102 — — 563 — — — 665 Total acquired 143,128 29,736 214 14,141 6,158 — 128 193,505 Total loans $ 2,050,382 $ 731,186 $ 136,999 $ 635,426 $ 799,860 $ 60,122 $ 12,158 $ 4,426,133 As of December 31, 2016 , there were no loans categorized as definite loss. At December 31, 2016 Residential Mortgage Home Equity ($ In Thousands) Originated: Loan-to-value ratio: Less than 50% $ 138,030 22.1 % $ 153,679 44.9 % 50%—69% 229,799 36.9 % 61,553 18.1 % 70%—79% 162,614 26.0 % 49,987 14.6 % 80% and over 21,859 3.5 % 23,317 6.8 % Data not available* 3,128 0.5 % 825 0.2 % Total originated 555,430 89.0 % 289,361 84.6 % Acquired: Loan-to-value ratio: Less than 50% 17,809 2.9 % 32,334 9.4 % 50%—69% 24,027 3.8 % 15,059 4.4 % 70%—79% 14,030 2.2 % 3,069 0.9 % 80% and over 10,069 1.6 % 1,016 0.3 % Data not available* 2,984 0.5 % 1,402 0.4 % Total acquired 68,919 11.0 % 52,880 15.4 % Total loans $ 624,349 100.0 % $ 342,241 100.0 % _______________________________________________________________________________ * Represents in process general ledger accounts for which data are not available. The following table presents information regarding foreclosed residential real estate property for the periods indicated: At December 31, 2017 At December 31, 2016 (In Thousands) Foreclosed residential real estate property held by the creditor $ — $ 251 Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure 633 1,213 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, 2017 and 2016 . At December 31, 2017 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 $ 3,294 $ 391 $ 1,843 $ 5,528 $ 2,063,864 $ 2,069,392 $ — $ 3,182 Multi-family mortgage 6,141 2,590 — 8,731 727,190 735,921 — 608 Construction 6,537 330 860 7,727 132,411 140,138 — 860 Total commercial real estate loans 15,972 3,311 2,703 21,986 2,923,465 2,945,451 — 4,650 Commercial loans and leases: Commercial 1,344 597 7,724 9,665 687,160 696,825 — 10,365 Equipment financing 3,214 2,494 3,203 8,911 853,063 861,974 224 8,106 Condominium association 857 262 — 1,119 51,500 52,619 — — Total commercial loans and leases 5,415 3,353 10,927 19,695 1,591,723 1,611,418 224 18,471 Consumer loans: Residential mortgage 1,256 166 728 2,150 602,747 604,897 — 1,979 Home equity 643 19 32 694 313,495 314,189 1 132 Other consumer 238 20 28 286 14,381 14,667 — 43 Total consumer loans 2,137 205 788 3,130 930,623 933,753 1 2,154 Total originated loans and leases $ 23,524 $ 6,869 $ 14,418 $ 44,811 $ 5,445,811 $ 5,490,622 $ 225 $ 25,275 (Continued) At December 31, 2017 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 $ 1,008 $ — $ 656 $ 1,664 $ 103,913 $ 105,577 $ 586 $ 131 Multi-family mortgage — — 3 3 24,746 24,749 3 — Total commercial real estate loans 1,008 — 659 1,667 128,659 130,326 589 131 Commercial loans and leases: Commercial — 44 1,022 1,066 7,113 8,179 17 1,254 Equipment financing — — 13 13 4,501 4,514 13 — Total commercial loans and leases — 44 1,035 1,079 11,614 12,693 30 1,254 Consumer loans: Residential mortgage — 463 1,990 2,453 52,715 55,168 1,990 — Home equity 508 — 186 694 41,071 41,765 186 612 Other consumer — — — — 105 105 — — Total consumer loans 508 463 2,176 3,147 93,891 97,038 2,176 612 Total acquired loans and leases 1,516 507 3,870 5,893 234,164 240,057 2,795 1,997 Total loans and leases $ 25,040 $ 7,376 $ 18,288 $ 50,704 $ 5,679,975 $ 5,730,679 $ 3,020 $ 27,272 At December 31, 2016 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 $ 1,525 $ 2,075 $ 429 $ 4,029 $ 1,903,225 $ 1,907,254 $ 2 $ 5,035 Multi-family mortgage 2,296 — 291 2,587 698,863 701,450 — 1,404 Construction 547 — — 547 136,238 136,785 — — Total commercial real estate loans 4,368 2,075 720 7,163 2,738,326 2,745,489 2 6,439 Commercial loans and leases: Commercial 5,396 815 10,014 16,225 605,060 621,285 — 20,587 Equipment financing 2,983 1,444 5,341 9,768 783,934 793,702 — 6,758 Condominium association 266 — — 266 59,856 60,122 — — Total commercial loans and leases 8,645 2,259 15,355 26,259 1,448,850 1,475,109 — 27,345 Consumer loans: Residential mortgage 3,745 2,294 163 6,202 549,228 555,430 — 2,455 Home equity 25 219 5 249 289,112 289,361 3 128 Other consumer 549 87 16 652 17,519 18,171 — 149 Total consumer loans 4,319 2,600 184 7,103 855,859 862,962 3 2,732 Total originated loans and leases $ 17,332 $ 6,934 $ 16,259 $ 40,525 $ 5,043,035 $ 5,083,560 $ 5 $ 36,516 (Continued) At December 31, 2016 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 $ 925 $ — $ 4,011 $ 4,936 $ 138,192 $ 143,128 $ 3,786 $ 305 Multi-family mortgage — — — — 29,736 29,736 — — Construction — — — — 214 214 — — Total commercial real estate loans 925 — 4,011 4,936 168,142 173,078 3,786 305 Commercial loans and leases: Commercial 306 — 2,651 2,957 11,184 14,141 264 2,387 Equipment financing — — — — 6,158 6,158 — — Total commercial loans and leases 306 — 2,651 2,957 17,342 20,299 264 2,387 Consumer loans: Residential mortgage — 318 2,865 3,183 65,736 68,919 2,820 46 Home equity 288 97 339 724 52,156 52,880 202 823 Other consumer — 1 — 1 127 128 — — Total consumer loans 288 416 3,204 3,908 118,019 121,927 3,022 869 Total acquired loans and leases 1,519 416 9,866 11,801 303,503 315,304 7,072 3,561 Total loans and leases $ 18,851 $ 7,350 $ 26,125 $ 52,326 $ 5,346,538 $ 5,398,864 $ 7,077 $ 40,077 Commercial Real Estate Loans —As of December 31, 2017 , 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 ( 38.0% ); multi-family mortgage loans ( 13.3% ); and construction loans ( 2.4% ). 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, 2017 , 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 ( 12.3% ); equipment financing loans ( 15.1% ); and loans to condominium associations ( 0.9% ). 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, 2017 , loans outstanding within the three classes within this segment expressed as a percent of total loans and leases outstanding were as follows: residential mortgage loans ( 11.5% ), home equity loans ( 6.2% ), and other consumer loans ( 0.3% ). 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. 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, 2017 At December 31, 2016 Recorded (1) Unpaid Related Recorded Investment (2) Unpaid Related (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 9,978 $ 9,962 $ — $ 9,113 $ 9,104 $ — Commercial 24,906 25,040 — 39,269 39,210 — Consumer 3,508 3,500 — 4,823 4,815 — Total originated with no related allowance recorded 38,392 38,502 — 53,205 53,129 — With an allowance recorded: Commercial real estate 3,056 3,056 — 3,984 3,984 28 Commercial 8,912 8,862 3,105 605 605 97 Total originated with an allowance recorded 11,968 11,918 3,105 4,589 4,589 125 Total originated impaired loans and leases 50,360 50,420 3,105 57,794 57,718 125 Acquired: With no related allowance recorded: Commercial real estate 1,880 1,880 — 10,400 10,400 — Commercial 1,594 1,594 — 3,948 3,948 — Consumer 4,736 4,736 — 6,384 6,399 — Total acquired with no related allowance recorded 8,210 8,210 — 20,732 20,747 — With an allowance recorded: Consumer 115 115 22 253 253 27 Total acquired with an allowance recorded 115 115 22 253 253 27 Total acquired impaired loans and leases 8,325 8,325 22 20,985 21,000 27 Total impaired loans and leases $ 58,685 $ 58,745 $ 3,127 $ 78,779 $ 78,718 $ 152 ___________________________________________________________________________ (1) Includes originated and acquired nonaccrual loans of $24.9 million and $2.0 million , respectively as of December 31, 2017 . (2) Includes originated and acquired nonaccrual loans of $34.1 million and $3.6 million , respectively as of December 31, 2016 . Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Average Interest Average Interest Average Interest (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 10,125 $ 72 $ 6,608 $ 152 $ 3,999 $ 86 Commercial 26,439 225 23,445 600 15,143 641 Consumer 3,565 14 4,126 76 4,267 65 Total originated with no related allowance recorded 40,129 311 34,179 828 23,409 792 With an allowance recorded: Commercial real estate 3,058 38 4,715 195 5,132 197 Commercial 13,604 — 9,915 6 5,650 10 Consumer — — 124 — 84 — Total originated with an allowance recorded 16,662 38 14,754 201 10,866 207 Total originated impaired loans and leases 56,791 349 48,933 1,029 34,275 999 Acquired: With no related allowance recorded: Commercial real estate 1,996 1 8,906 151 9,200 125 Commercial 1,610 5 4,255 75 4,428 65 Consumer 4,784 17 7,537 68 7,837 62 Total acquired with no related allowance recorded 8,390 23 20,698 294 21,465 252 With an allowance recorded: Commercial real estate — — 1,093 — 713 — Commercial — — 364 — 638 — Consumer 116 1 431 8 249 8 Total acquired with an allowance recorded 116 1 1,888 8 1,600 8 Total acquired impaired loans and leases 8,506 24 22,586 302 23,065 260 Total impaired loans and leases $ 65,297 $ 373 $ 71,519 $ 1,331 $ 57,340 $ 1,259 The following tables present information regarding impaired and non-impaired loans and leases at the dates indicated: At December 31, 2017 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Originated: Individually evaluated for impairment $ — $ 3,105 $ — $ 3,105 Collectively evaluated for impairment 26,366 23 |