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 in loans and leases by portfolio segment for the periods indicated: Three Months Ended September 30, 2020 Commercial Commercial Consumer Total (In Thousands) Balance at June 30, 2020 $ 90,011 $ 24,938 $ 4,604 $ 119,553 Charge-offs (70) (5,429) (12) (5,511) Recoveries — 512 36 548 (Credit) provision for loan and lease losses excluding unfunded commitments (2,721) 8,557 (455) 5,381 Balance at September 30, 2020 $ 87,220 $ 28,578 $ 4,173 $ 119,971 Three Months Ended September 30, 2019 Commercial Commercial Consumer Total (In Thousands) Balance at June 30, 2019 $ 28,668 $ 24,333 $ 5,634 $ 58,635 Charge-offs — (1,175) (15) (1,190) Recoveries — 772 52 824 Provision for loan and lease losses 361 463 42 866 Balance at September 30, 2019 $ 29,029 $ 24,393 $ 5,713 $ 59,135 Nine Months Ended September 30, 2020 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2019 $ 30,285 $ 24,826 $ 5,971 $ 61,082 Adoption of ASU 2016-13 (CECL) 11,694 (2,672) (2,390) 6,632 Balance at beginning of period, adjusted 41,979 22,154 3,581 67,714 Charge-offs (70) (9,750) (33) (9,853) Recoveries 94 1,055 124 1,273 Provision for loan and lease losses excluding unfunded commitments 45,217 15,119 501 60,837 Balance at September 30, 2020 $ 87,220 $ 28,578 $ 4,173 $ 119,971 Nine Months Ended September 30, 2019 Commercial Commercial Consumer Total (In Thousands) Balance at December 31, 2018 $ 28,187 $ 25,283 $ 5,222 $ 58,692 Charge-offs — (7,088) (56) (7,144) Recoveries — 1,454 141 1,595 Provision for loan and lease losses 842 4,744 406 5,992 Balance at September 30, 2019 $ 29,029 $ 24,393 $ 5,713 $ 59,135 The allowance for credit losses for unfunded credit commitments, which is included in other liabilities, was $14.0 million and $1.9 million at September 30, 2020 and December 31, 2019, respectively. The increase in allowance for unfunded commitments was primarily driven by the adoption of CECL and the effect of the latest available economic forecast which incorporates the impact of the COVID-19 pandemic. No credit commitments were charged off against the liability account in the nine month periods ended September 30, 2020 and 2019. Provision for Credit Losses The provisions for credit losses are set forth below for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In Thousands) Provision for loan and lease losses: Commercial real estate $ (2,721) $ 361 $ 45,217 $ 842 Commercial 8,557 463 15,119 4,744 Consumer (455) 42 501 406 Total provision for loan and lease losses 5,381 866 60,837 5,992 Unfunded credit commitments (853) 5 3,152 (11) Total provision for credit losses $ 4,528 $ 871 $ 63,989 $ 5,981 Allowance for Loan and Lease Losses Methodology Management has established a methodology to determine the adequacy of the allowance for credit losses that assesses the risks and losses expected on the loan and lease portfolio. Additions to the allowance for credit 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. To calculate the allowance for loans collectively evaluated, management uses models developed by a third party. The models include: Commercial real estate (CRE) lifetime, Commercial and industrial (C&I) lifetime, Retail lifetime, C&I historical, and Retail historical. Lifetime loss rate models calculate the expected losses over the life of the loan based on loan attributes and reasonable, supportable economic forecasts. Key assumptions used in the models include portfolio segmentation, prepayments, and the expected utilization of unfunded commitments, among others. The portfolios are segmented by loan level attributes such as loan size, date of origination, and delinquency status to create homogenous loan pools. Pool level metrics are calculated and loss rates are subsequently applied to the pools as the loans have like characteristics. Prepayment assumptions are embedded within the models and are based on the same data used for model development. Model development data and developmental time periods vary by model, but all use at least ten years of historical data and capture at least one recessionary period. Expected utilization is based on current utilization and a loan equivalency (LEQ) factor. LEQ varies by current utilization and provides a reasonable estimate of expected draws and borrower behavior. Assumptions and model inputs are reviewed in accordance with model monitoring practices and as information becomes availa ble . Historical loss rate models apply a loss rate to the outstanding balance of the loan. Management uses historical loss rates for condominium association, auto, and government lease portfolio segments because these loans have distinct, historical, or expected loss patterns and a de minimus effect on the overall allowance and provision. Management elected to use multiple economic forecasts in determining the reserve to account for economic uncertainty. The forecasts include various projections of Gross Domestic Product ("GDP"), interest rates, property price indices, and employment measures. The forecasts are probability-weighted based on available information at the time of the calculation execution. Scenario weighting and model parameters are reviewed for each calculation and are subject to change. The models recognize that the life of a loan may exceed the economic forecast therefore the models employ mean reversion techniques at the input level to predict credit losses for loans that are expected to mature beyond the forecast period. The September 30, 2020 forecasts reflect the immediate and longer-term effects of the COVID-19 pandemic as well as the associated policies and fiscal support provided by local and national authorities. The CRE lifetime loss rate, C&I lifetime loss rate, and Retail lifetime loss rate models were developed using the historical loss experience of all banks in the model’s developmental dataset. Banks in the model’s developmental dataset may have different loss experiences due to geography and portfolio as well as variances in operational and underwriting procedures from the Company, and therefore, the Company calibrates expected losses using a scalar for each model. Each scalar was calculated by examining the loss rates of peer banks that have similar operations and asset bases to the Company and comparing these peer group loss rates to the model results. Peer group loss rates were used in the scalar calculation because management believes the peer group’s historical losses provide a better reflection of the Company’s current portfolio and operating procedures than the Company’s historical losses. Qualitative adjustments are also applied to select segments of the loan portfolio where applicable. For September 30, 2020, management applied qualitative adjustments to the CRE lifetime loss rate and C&I lifetime loss rate. These adjustments were made based on historical loss patterns, current loan and portfolio metrics, and expert judgment based on professional experience. These qualitative adjustments resulted in additions to reserves for the CRE and C&I portfolio, as compared to the model output. Specific reserves are established for loans individually evaluated for impairment when amortized cost basis is greater than the discounted present value of expected future cash flows or, in the case of collateral-dependent loans, when there is an excess of a loan's amortized cost basis over the fair value of its underlying collateral. When loans and leases do not share risk characteristics with other financial assets they are evaluated individually. Individually evaluated loans are reviewed quarterly with adjustments made to the calculated reserve as necessary. Beginning January 1, 2020, the Company implemented the CECL methodology to calculate the allowance for credit losses. As of January 1, 2020, the allowance for loan and lease losses increased by $6.6 million as a result of the adoption of CECL. Prior to January 1, 2020, the Company calculated the allowance for loan and lease losses using the incurred losses methodology. The general allowance for loan and lease losses was $116.4 million as of September 30, 2020, compared to $59.3 million as of December 31, 2019. The increase in general allowance for loan and lease losses was driven by the effect of the latest available economic forecast, inclusive of the COVID-19 pandemic and legislative initiatives, on the Company's loan and lease portfolios. The specific allowance for loan and lease losses was $3.6 million as of September 30, 2020, compared to $1.8 million as of December 31, 2019. The specific allowance increased by $1.8 million during the nine months ended September 30, 2020 primarily due to the $2.3 million for an individually evaluated commercial real estate relationship, partially off set by the decrease in specific reserves for individually evaluated loans during the nine months ended September 30, 2020. As of September 30, 2020, management believes that the methodology for calculating the allowance is sound and that the allowance provides a reasonable basis for determining and reporting on expected losses over the lifetime of the Company’s loan portfolios. 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 credit 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, adversely risk-rated, 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 ("TDR") loan. 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 table presents the amortized cost basis of loans in each class by credit quality indicator and year of origination as of September 30, 2020. September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Commercial Real Estate Pass $ 277,853 $ 425,762 $ 275,169 $ 269,095 $ 288,674 $ 967,039 $ 56,771 $ 12,775 $ 2,573,138 OAEM — 483 — — 3,362 17,696 — — 21,541 Substandard — — — 221 237 11,401 — 63 11,922 Total 277,853 426,245 275,169 269,316 292,273 996,136 56,771 12,838 2,606,601 Multi-Family Mortgage Pass 90,820 133,380 142,958 108,015 129,207 334,947 36,520 12,119 987,966 Total 90,820 133,380 142,958 108,015 129,207 334,947 36,520 12,119 987,966 Construction Pass 27,337 52,036 144,802 2,184 3,567 411 6,704 — 237,041 OAEM — 1,000 — — 2,764 — — — 3,764 Total 27,337 53,036 144,802 2,184 6,331 411 6,704 — 240,805 Commercial September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Pass 635,687 73,423 49,956 72,071 26,620 120,332 210,430 4,519 1,193,038 OAEM 306 5,188 21 — 65 22 7,831 — 13,433 Substandard — — 137 433 29 7,731 3,971 520 12,821 Doubtful — — — — — — — 2 2 Total 635,993 78,611 50,114 72,504 26,714 128,085 222,232 5,041 1,219,294 Equipment Financing Pass 232,419 337,593 234,645 137,756 67,155 52,209 1,155 940 1,063,872 OAEM 189 — — — 1,322 38 — — 1,549 Substandard 142 5,186 5,978 3,229 1,717 847 — — 17,099 Doubtful — 431 1 418 295 42 — — 1,187 Total 232,750 343,210 240,624 141,403 70,489 53,136 1,155 940 1,083,707 Condominium Association Pass 3,866 10,881 5,523 8,291 5,501 14,283 2,701 449 51,495 Substandard — — — — 117 — — — 117 Total 3,866 10,881 5,523 8,291 5,618 14,283 2,701 449 51,612 Other Consumer Pass 378 583 1,953 33 571 307 26,323 8 30,156 Substandard — — — — — — — 1 1 Total 378 583 1,953 33 571 307 26,323 9 30,157 Total Pass 1,268,360 1,033,658 855,006 597,445 521,295 1,489,528 340,604 30,810 6,136,706 OAEM 495 6,671 21 — 7,513 17,756 7,831 — 40,287 Substandard 142 5,186 6,115 3,883 2,100 19,979 3,971 584 41,960 Doubtful — 431 1 418 295 42 — 2 1,189 Total $ 1,268,997 $ 1,045,946 $ 861,143 $ 601,746 $ 531,203 $ 1,527,305 $ 352,406 $ 31,396 $ 6,220,142 As of December 31, 2019, there were no loans categorized as definite loss. For residential mortgage and home equity loans, the borrowers' credit scores contribute as a reserve metric in the retail loss rate model. At September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (In Thousands) Residential Credit Scores Over 700 $ 101,481 $ 102,094 $ 69,726 $ 59,347 $ 50,455 $ 135,797 $ 3,674 $ — $ 522,574 661 - 700 17,891 20,098 11,981 15,857 10,396 24,385 — — 100,608 600 and below 5,264 5,262 4,788 8,194 5,511 14,450 — — 43,469 Data not available* 12,485 17,561 17,413 16,103 5,078 79,074 26 1,340 149,080 Total 137,121 145,015 103,908 99,501 71,440 253,706 3,700 1,340 815,731 Home Equity Credit Scores Over 700 1,268 3,226 2,727 3,087 1,163 13,742 257,814 2,761 285,788 661 - 700 199 490 511 663 323 3,191 43,607 1,372 50,356 600 and below 60 155 271 14 40 568 10,184 914 12,206 Data not available* 53 — — — — 1,574 9,132 1,376 12,135 Total $ 1,580 $ 3,871 $ 3,509 $ 3,764 $ 1,526 $ 19,075 $ 320,737 $ 6,423 $ 360,485 _______________________________________________________________________________ * Represents loans and leases for which data are not available. The following tables present the recorded investment in loans in each class as of December 31, 2019, by credit quality indicator. At December 31, 2019 Commercial Multi- Construction Commercial Equipment Condominium Other Total (In Thousands) Originated: Loan rating: Pass $ 2,379,925 $ 896,398 $ 239,015 $ 688,268 $ 1,038,793 $ 56,687 $ 38,673 $ 5,337,759 OAEM 17,006 — — 10,803 1,389 — — 29,198 Substandard 3,106 84 — 14,801 7,995 151 1 26,138 Doubtful — — — 3 1,820 — — 1,823 Total originated 2,400,037 896,482 239,015 713,875 1,049,997 56,838 38,674 5,394,918 Acquired: Loan rating: Pass 81,360 35,681 7,033 15,215 2,404 — 108 141,801 OAEM 597 — — 210 — — — 807 Substandard 9,017 — — 202 7 — — 9,226 Total acquired 90,974 35,681 7,033 15,627 2,411 — 108 151,834 Total loans $ 2,491,011 $ 932,163 $ 246,048 $ 729,502 $ 1,052,408 $ 56,838 $ 38,782 $ 5,546,752 As of September 30, 2020, there were no loans categorized as definite loss. At December 31, 2019 Residential Mortgage Home Equity (Dollars In Thousands) Originated: Loan-to-value ratio: Less than 50% $ 184,628 22.7 % $ 132,736 35.2 % 50%—69% 293,976 36.1 % 91,681 24.3 % 70%—79% 204,600 25.1 % 81,459 21.6 % 80% and over 25,664 3.2 % 37,371 9.9 % Data not available* 2,654 0.3 % — — % Total originated 711,522 87.4 % 343,247 91.0 % Acquired: Loan-to-value ratio: Less than 50% 32,838 4.0 % 16,882 4.5 % 50%—69% 44,754 5.4 % 7,958 2.1 % 70%—79% 14,305 1.8 % 705 0.2 % 80% and over 4,608 0.6 % 4,726 1.3 % Data not available 6,218 0.8 % 3,301 0.9 % Total acquired 102,723 12.6 % 33,572 9.0 % Total loans $ 814,245 100.0 % $ 376,819 100.0 % _______________________________________________________________________________ * 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 September 30, 2020 At December 31, 2019 (In Thousands) Amortized cost basis in mortgage loans collateralized by residential real estate property that are in the process of foreclosure $ 53 $ 110 Age Analysis of Past Due Loans and Leases The following table presents an age analysis of the amortized cost basis in loans and leases as of September 30, 2020. At September 30, 2020 Past Due Past 31-60 61-90 Greater Total Current Total Loans Non-accrual Non-accrual (In Thousands) Commercial real estate loans: Commercial real estate $ 8,879 $ 586 $ 10,722 $ 20,187 $ 2,586,414 $ 2,606,601 $ 145 $ 10,841 $ 2,460 Multi-family mortgage — — — — 987,966 987,966 — — — Construction — 3,853 — 3,853 236,952 240,805 — — — Total commercial real estate loans 8,879 4,439 10,722 24,040 3,811,332 3,835,372 145 10,841 2,460 Commercial loans and leases: Commercial 4,082 19 5,596 9,697 1,209,597 1,219,294 1 7,751 6,444 Equipment financing 7,854 2,724 7,744 18,322 1,065,385 1,083,707 210 13,372 3,410 Condominium association 303 — — 303 51,309 51,612 — 117 117 Total commercial loans and leases 12,239 2,743 13,340 28,322 2,326,291 2,354,613 211 21,240 9,971 Consumer loans: Residential mortgage 2,150 286 3,475 5,911 809,820 815,731 633 4,634 3,639 Home equity 705 400 900 2,005 358,480 360,485 191 1,235 839 Other consumer 11 3 1 15 30,142 30,157 — 2 — Total consumer loans 2,866 689 4,376 7,931 1,198,442 1,206,373 824 5,871 4,478 Total loans and leases $ 23,984 $ 7,871 $ 28,438 $ 60,293 $ 7,336,065 $ 7,396,358 $ 1,180 $ 37,952 $ 16,909 There is no interest income recognized on non-accrual loans for the nine months ended September 30, 2020. The following tables present an age analysis of the recorded investment in originated and acquired loans and leases as of December 31, 2019. At December 31, 2019 Past Due Loans and 31-60 61-90 Greater Total Current Total Loans Nonaccrual (In Thousands) Originated: Commercial real estate loans: Commercial real estate $ 3,330 $ 2,032 $ 1,606 $ 6,968 $ 2,393,069 $ 2,400,037 $ 51 $ 2,751 Multi-family mortgage 3,559 553 — 4,112 892,370 896,482 — 84 Construction — — — — 239,015 239,015 — — Total commercial real estate loans 6,889 2,585 1,606 11,080 3,524,454 3,535,534 51 2,835 Commercial loans and leases: Commercial 5,010 199 3,875 9,084 704,791 713,875 — 4,707 Equipment financing 3,098 1,558 7,246 11,902 1,038,095 1,049,997 — 9,822 Condominium association 458 — — 458 56,380 56,838 — 151 Total commercial loans and leases 8,566 1,757 11,121 21,444 1,799,266 1,820,710 — 14,680 Consumer loans: Residential mortgage 1,014 — 3 1,017 710,505 711,522 — 753 Home equity 794 501 139 1,434 341,813 343,247 2 276 Other consumer 46 1 1 48 38,626 38,674 — 1 Total consumer loans 1,854 502 143 2,499 1,090,944 1,093,443 2 1,030 Total originated loans and leases $ 17,309 $ 4,844 $ 12,870 $ 35,023 $ 6,414,664 $ 6,449,687 $ 53 $ 18,545 At December 31, 2019 Past Due Loans and 31-60 61-90 Greater Total Current Total Loans Nonaccrual Loans and Leases (1) (In Thousands) Acquired: Commercial real estate loans: Commercial real estate $ 539 $ 59 $ 8,989 $ 9,587 $ 81,387 $ 90,974 $ 8,919 $ 94 Multi-family mortgage — — — — 35,681 35,681 — — Construction — — — — 7,033 7,033 — — Total commercial real estate loans 539 59 8,989 9,587 124,101 133,688 8,919 94 Commercial loans and leases: Commercial — — — — 15,627 15,627 — 202 Equipment financing — — 7 7 2,404 2,411 7 — Total commercial loans and leases — — 7 7 18,031 18,038 7 202 Consumer loans: Residential mortgage 35 75 1,090 1,200 101,523 102,723 1,090 — Home equity 430 — 42 472 33,100 33,572 40 620 Other consumer — — — — 108 108 — — Total consumer loans 465 75 1,132 1,672 134,731 136,403 1,130 620 Total acquired loans and leases $ 1,004 $ 134 $ 10,128 $ 11,266 $ 276,863 $ 288,129 $ 10,056 $ 916 Total loans and leases $ 18,313 $ 4,978 $ 22,998 $ 46,289 $ 6,691,527 $ 6,737,816 $ 10,109 $ 19,461 ___________________________________________________________ (1) Loans and leases acquired with deteriorated credit quality are always accruing. 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 loans and leases risk-rated "substandard" or worse are considered impaired. The Company has also defined the population of impaired loans to include nonaccrual loans and TDR loans. Impaired loans and leases which do not share similar risk characteristics with other loans are individually evaluated for credit losses. Specific reserves are established for loans and leases with deterioration in the present value of expected future cash flows or, in the case of collateral-dependent loans and leases, any increase in the loan or lease amortized cost basis over the fair value of the underlying collateral discounted for estimated selling costs. In contrast, the loans and leases which share similar risk characteristics and are not included in the individually evaluated population are collectively evaluated for credit losses. The following tables present information regarding individually evaluated and collectively evaluated allowance for loan and lease losses for credit losses on loans and leases at the dates indicated. Periods prior to January 1, 2020 are presented in accordance with accounting rules effective at that time. At September 30, 2020 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Individually evaluated $ 2,412 $ 1,028 $ 111 $ 3,551 Collectively evaluated 84,808 27,550 4,062 116,420 Total 87,220 28,578 4,173 119,971 Loans and Leases: Individually evaluated $ 11,764 $ 27,419 $ 8,401 $ 47,584 Collectively evaluated 3,823,608 2,327,194 1,197,972 7,348,774 Total 3,835,372 2,354,613 1,206,373 7,396,358 At December 31, 2019 Commercial Real Estate Commercial Consumer Total (In Thousands) Allowance for Loan and Lease Losses: Originated: Individually evaluated for impairment $ 7 $ 1,672 $ 70 $ 1,749 Collectively evaluated for impairment 28,415 22,853 5,850 57,118 Total originated loans and leases 28,422 24,525 5,920 58,867 Acquired: Individually evaluated for impairment — — 40 40 Collectively evaluated for impairment 65 197 11 273 Acquired with deteriorated credit quality 1,798 104 — 1,902 Total acquired loans and leases 1,863 301 51 2,215 Total allowance for loan and lease losses $ 30,285 $ 24,826 $ 5,971 $ 61,082 Loans and Leases: Originated: Individually evaluated for impairment $ 3,956 $ 20,019 $ 3,326 $ 27,301 Collectively evaluated for impairment 3,531,578 1,800,691 1,090,117 6,422,386 Total originated loans and leases 3,535,534 1,820,710 1,093,443 6,449,687 Acquired: Individually evaluated for impairment 2,942 397 1,841 5,180 Collectively evaluated for impairment 79,465 15,465 110,758 205,688 Acquired with deteriorated credit quality 51,281 2,176 23,804 77,261 Total acquired loans and leases 133,688 18,038 136,403 288,129 Total loans and leases $ 3,669,222 $ 1,838,748 $ 1,229,846 $ 6,737,816 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, 2019 Recorded Investment (1) Unpaid Related (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 3,899 $ 3,892 $ — Commercial 28,539 28,533 — Consumer 2,237 2,223 — Total originated with no related allowance recorded 34,675 34,648 — With an allowance recorded: Commercial real estate 68 68 7 Commercial 5,980 6,055 1,672 Consumer 1,224 1,220 70 Total originated with an allowance recorded 7,272 7,343 1,749 Total originated impaired loans and leases 41,947 41,991 1,749 Acquired: With no related allowance recorded: Commercial real estate 12,365 12,366 — Commercial 437 437 — Consumer 3,516 3,516 — Total acquired with no related allowance recorded 16,318 16,319 — With an allowance recorded: Commercial real estate — — — Commercial — — — Consumer 447 447 40 Total acquired with an allowance recorded 447 447 40 Total acquired impaired loans and leases 16,765 16,766 40 Total impaired loans and leases $ 58,712 $ 58,757 $ 1,789 ___________________________________________________________________________ (1) Includes originated and acquired nonaccrual loans of $18.5 million and $0.9 million, respectively as of December 31, 2019. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Average Interest Average Interest (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 3,964 $ 15 $ 5,543 $ 95 Commercial 26,826 206 29,605 759 Consumer 2,638 10 2,669 28 Total originated with no related allowance recorded 33,428 231 37,817 882 With an allowance recorded: Commercial real estate 70 1 336 2 Commercial 5,511 27 7,482 55 Consumer 1,231 13 852 19 Total originated with an allowance recorded 6,812 41 8,670 76 Total originated impaired loans and leases 40,240 272 46,487 958 Acquired: With no related allowance recorded: Commercial real estate 14,316 91 10,874 94 Commercial 486 4 535 8 Consumer 3,759 12 4,548 27 Total acquired with no related allowance recorded 18,561 107 15,957 129 With an allowance recorded: Consumer 452 5 253 6 Total acquired with an allowance recorded 452 5 253 6 Total acquired impaired loans and leases 19,013 112 16,210 135 Total impaired loans and leases $ 59,253 $ 384 $ 62,697 $ 1,093 Troubled Debt Restructuring Loans and Lease The following table sets forth information regarding TDR loans and leases at the dates indicated: At September 30, 2020 At December 31, 2019 (In Thousands) Troubled debt restructurings: On accrual $ 11,309 $ 17,076 On nonaccrual 5,742 6,104 Total troubled debt restructurings $ 17,051 $ 23,180 Total TDR loans and leases decreased by $6.2 million to $17.1 million at September 30, 2020 from $23.2 million at December 31, 2019, driven primarily by the payoffs of one commercial TDR of $3.0 million, one construction TDR of $2.9 million, and payments of current TDR relationships, partially offset by the new TDRs during the nine months ended September 30, 2020. The amortized cost basis in TDR loans and the associated specific credit losses for the loan and lease portfolios, that were modified during the periods indicated, are as follows. At and for the Three Months Ended September 30, 2020 Amortized Cost Specific Defaulted (1) Number of At At End of Nonaccrual Number of Amortized Cost (Dollars in Thousands) Commercial real estate — $ — $ — $ — $ — 1 $ 221 Commercial 1 $ 1,098 $ 1,098 $ — $ — — $ — Equipment financing 4 212 212 11 212 — — Home equity 1 276 276 — 276 — — Total 6 $ 1,586 $ 1,586 $ 11 $ 488 1 $ 221 Total loans and leases 6 $ 1,586 $ 1,586 $ 11 $ 488 1 $ 221 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Three Months Ended September 30, 2019 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Number of Recorded (Dollars in Thousands) Originated: Commercial — — — — — 1 367 Equipment financing 2 1,405 1,399 30 49 1 155 Residential mortgage 3 869 866 29 343 — — Home equity 2 251 252 2 — — — Total originated 7 $ 2,525 $ 2,517 $ 61 $ 392 2 $ 522 Acquired: Construction 1 4,870 4,870 — — — — Residential mortgage 1 297 297 12 — — — Total acquired 2 5,167 5,167 12 — — — Total loans and leases 9 $ 7,692 $ 7,684 $ 73 $ 392 2 $ 522 ______________________________________________________________________ (1) Includes loans and leases that have been modified within the past twelve months and subsequently had payment defaults during the period indicated. At and for the Nine Months Ended September 30, 2020 Amortized Cost Specific Defaulted (1) Number of At At End of Nonaccrual Additional Number of Amortized Cost (Dollars in Thousands) Commercial real estate — $ — $ — $ — $ — $ — $ 1 $ 221 Commercial 3 1,401 1,401 — — — — — Equipment financing 15 1,406 1,340 11 1,297 — — — Home equity 2 476 476 — 276 — — — Total 20 $ 3,283 $ 3,217 $ 11 $ 1,573 — 1 $ 221 At and for the Nine Months Ended September 30, 2019 Recorded Investment Specific Defaulted (1) Number of At At End of Nonaccrual Additional Number of Recorded (Dollars in Thousands) Originated: Commercial real estate 1 $ 73 $ 70 $ 8 $ — — — $ — Commercial 3 6,793 7,146 — — 766 1 367 Equipment financing 7 2,775 2,458 376 1,056 — — — Residential mortgage 3 869 866 29 343 — — — Home equity 2 251 252 2 — — — — Total originated 16 $ 10,761 $ 10,792 $ 415 $ 1,399 $ 766 1 $ 367 Acquired: Construction 1 4,870 4,870 — — — — — Residential mortgage 1 297 297 12 — — — — Total acquired 2 5,167 5,167 12 — — — — Total loans and leases 18 $ 15,928 $ 15,959 $ 427 $ 1,399 $ 766 1 $ 367 The following table sets forth the Company's end-of-period amortized cost basis for TDRs that were modified during the periods indicated, by type of modification. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In Thousands) Extended maturity $ 1,114 $ 4,919 $ 1,743 $ 12,098 Adjusted principal — — 44 — Adjusted interest rate — 252 — 252 |