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: Three Months Ended June 30, 2015 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Balance at March 31, 2015 $ 29,460 $ 19,084 $ 458 $ 3,619 $ 2,485 $ 55,106 Charge-offs (162 ) (245 ) (397 ) (225 ) — (1,029 ) Recoveries — 94 410 24 — 528 Credit (provision) for loan and lease losses (82 ) 1,296 (90 ) 594 75 1,793 Balance at June 30, 2015 $ 29,216 $ 20,229 $ 381 $ 4,012 $ 2,560 $ 56,398 Three Months Ended June 30, 2014 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Balance at March 31, 2014 $ 24,858 $ 15,544 $ 3,664 $ 3,110 $ 3,048 $ 50,224 Charge-offs — (796 ) (228 ) (172 ) — (1,196 ) Recoveries — 218 173 85 — 476 Provision (credit) for loan and lease losses 1,857 900 77 (6 ) (646 ) 2,182 Balance at June 30, 2014 $ 26,715 $ 15,866 $ 3,686 $ 3,017 $ 2,402 $ 51,686 Six Months Ended June 30, 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 ) (695 ) (1,217 ) (232 ) — (2,694 ) Recoveries — 306 991 42 — 1,339 Provision (credit) for loan and lease losses 172 4,661 (1,724 ) 843 142 4,094 Balance at June 30, 2015 $ 29,216 $ 20,229 $ 381 $ 4,012 $ 2,560 $ 56,398 Six Months Ended June 30, 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 — (1,347 ) (517 ) (382 ) — (2,246 ) Recoveries — 469 277 114 — 860 Provision (credit) for loan and lease losses 3,693 1,524 2 (90 ) (530 ) 4,599 Balance at June 30, 2014 $ 26,715 $ 15,866 $ 3,686 $ 3,017 $ 2,402 $ 51,686 The liability for unfunded credit commitments, which is included in other liabilities, was $1.4 million , $1.3 million and $1.2 million at June 30, 2015 , December 31, 2014 and June 30, 2014 , respectively. The liability for unfunded credit commitments reflects 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 six -month periods ended June 30, 2015 and 2014 . Provision for Credit Losses The provision for credit losses are set forth below for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In Thousands) Provision (credit) for loan and lease losses: Commercial real estate $ (82 ) $ 1,857 $ 172 $ 3,693 Commercial 1,296 900 4,661 1,524 Indirect automobile (90 ) 77 (1,724 ) 2 Consumer 594 (6 ) 843 (90 ) Unallocated 75 (646 ) 142 (530 ) Total provision for loan and lease losses 1,793 2,182 4,094 4,599 Unfunded credit commitments 120 94 82 120 Total provision for credit losses $ 1,913 $ 2,276 $ 4,176 $ 4,719 Procedure for Placing Loans and Leases on Nonaccrual Accrual of interest on loans generally is discontinued when contractual payment of principal or interest becomes past due 90 days or, if in management’s judgment, reasonable doubt exists as to the full timely collection of interest. Exceptions may be made if the loan has matured and is in the process of renewal or is well-secured and in the process of collection. When a loan is placed on nonaccrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current interest income. Interest payments on nonaccrual loans are generally applied to principal. If collection of the principal is reasonably assured, interest payments are recognized as income on the cash basis. Loans are generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured and a consistent record of at least six consecutive months of performance has been achieved. 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. The allowance for loan and lease losses consists of general, specific and unallocated reserves and reflects management's estimate of probable loan and lease losses inherent in the loan portfolio at the balance sheet date. 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 pools: (1) commercial real estate loans, (2) commercial loans and leases, (3) indirect automobile loans and (4) 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 mortgage loans, multi-family mortgage loans and construction loans. Commercial loans and leases are divided into three classes: commercial loans, equipment financing, and loans to condominium associations. The indirect automobile loan segment is not divided into classes. 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. General Allowance 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 includes 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 a LEP that incurred losses should be carried for each portfolio. Other relevant qualitative factors include, but are not limited to, historic levels and trends in loan charge-offs and recoveries; past-due loans; risk-rated loans; classified loans and impaired loans; the pace of loan growth; underwriting policies and adherence to such policies; changes in credit concentration; the experience of lending personnel and management; trends in the economy and employment; business conditions; industry conditions; and political, legislative and regulatory 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. The general allowance for loan and lease losses was $51.0 million at June 30, 2015 , compared to $50.1 million at December 31, 2014 . The general portion of the allowance for loan and lease losses increased by $0.9 million during the six months ended June 30, 2015 , largely due to the growth in commercial real estate and commercial loan and lease portfolios, offset by the sale of the indirect automobile portfolio, which resulted in a release of $1.9 million in the general allowance for loan and lease losses in the first quarter of 2015. Specific Allowance 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 troubled debt restructured 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 deemed necessary. The specific allowance for loan and lease losses was $2.8 million at June 30, 2015 , compared to $1.2 million at December 31, 2014 . The specific allowance increased by $1.6 million during the six months ended June 30, 2015 , primarily due to one commercial relationship which was downgraded during the six months ended June 30, 2015 . Unallocated Allowance Determination of the unallocated portion of the allowance is a subjective process. Management believes the unallocated allowance is an important component of the total allowance because it addresses the probable inherent risk of loss that exists in that part of the Company's loan portfolio with repayment terms that extend over many years. It also helps to minimize the risk related to the margin of imprecision inherent in the estimation of the allocated components of the allowance. The unallocated allowance for loan and lease losses was $2.6 million at June 30, 2015 , compared to $2.4 million at December 31, 2014 . The unallocated portion of the allowance for loan and lease losses increased by $0.2 million during the six months ended June 30, 2015 , largely as the result of the increase in overall allowance for loan and lease losses. Credit Quality Assessment At the time of loan origination, a rating is assigned based on the financial strength of the borrower and the value of assets pledged as collateral. The Company continually monitors the asset 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 the commercial real estate mortgage, multi-family mortgage, construction, commercial, equipment financing, condominium association and other consumer loan and lease classes, 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 of the commercial real estate and commercial loan portfolios. The results of these reviews are reported to the Board of Directors. For consumer loans, the Company primarily relies on payment status for monitoring credit risk. The ratings categories used for assessing credit risk in the commercial real estate mortgage, 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 Asset Especially Mentioned (“OAEM”) Borrowers exhibit potential credit weaknesses or downward trends deserving management’s attention. If not checked or corrected, these trends can weaken the Company’s asset 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 uncollectable 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 at June 30, 2015 by credit quality indicator. At June 30, 2015 Commercial Real Estate Mortgage Multi- Family Mortgage Construction Commercial Equipment Financing Condominium Association Other Consumer (In Thousands) Originated: Loan rating: Pass $ 1,514,670 $ 574,892 $ 126,755 $ 531,060 $ 633,364 $ 55,185 $ 12,021 OAEM 12,921 1,191 220 7,622 1,198 — — Substandard 3,174 309 — 9,171 1,369 — 37 Doubtful — — — 874 1,480 — — Total originated 1,530,765 576,392 126,975 548,727 637,411 55,185 12,058 Acquired: Loan rating: Pass 213,309 49,233 531 24,813 11,036 — 139 OAEM 5,081 710 — 1,021 — — — Substandard 8,715 1,236 — 3,898 — — — Doubtful 411 — — 89 — — — Total acquired 227,516 51,179 531 29,821 11,036 — 139 Total loans $ 1,758,281 $ 627,571 $ 127,506 $ 578,548 $ 648,447 $ 55,185 $ 12,197 At June 30, 2015 , there were no loans categorized as definite loss. At June 30, 2015 Indirect Automobile ($ In Thousands) Originated: Credit score: Over 700 $ 7,665 39.6 % 661-700 2,815 14.5 % 660 and below 8,762 45.2 % Data not available 135 0.7 % Total loans $ 19,377 100.0 % At June 30, 2015 Residential Mortgage Home Equity ($ In Thousands) ($ In Thousands) Originated: Loan-to-value ratio: Less than 50% $ 112,562 18.7 % $ 114,866 38.4 % 50% - 69% 204,585 33.9 % 43,341 14.5 % 70% - 79% 169,265 28.1 % 31,228 10.4 % 80% and over 18,758 3.1 % 16,486 5.5 % Data not available 1,658 0.3 % 914 0.3 % Total originated 506,828 84.1 % 206,835 69.1 % Acquired: Loan-to-value ratio: Less than 50% 20,598 3.4 % 57,062 19.0 % 50% - 69% 34,968 5.8 % 22,208 7.4 % 70% - 79% 21,280 3.5 % 9,256 3.1 % 80% and over 15,055 2.5 % 3,248 1.1 % Data not available 4,344 0.7 % 787 0.3 % Total acquired 96,245 15.9 % 92,561 30.9 % Total loans $ 603,073 100.0 % $ 299,396 100.0 % The following tables present the recorded investment in loans in each class at December 31, 2014 by credit quality indicator. At December 31, 2014 Commercial Real Estate Mortgage 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 At 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 39.6 % 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 % Age Analysis of Past Due Loans and Leases The following tables present an age analysis of the recorded investment in total loans and leases at June 30, 2015 and December 31, 2014 . At June 30, 2015 Past Due Loans and Leases Past 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Due Greater Than 90 Days and Accruing Nonaccrual Loans and Leases (In Thousands) Originated: Commercial real estate loans: Commercial real estate mortgage $ 454 $ 2,147 $ 1,235 $ 3,836 $ 1,526,929 $ 1,530,765 $ 208 $ 3,174 Multi-family mortgage — — 309 309 576,083 576,392 — 309 Construction — — — — 126,975 126,975 — — Total commercial real estate loans 454 2,147 1,544 4,145 2,229,987 2,234,132 208 3,483 Commercial loans and leases: Commercial 4,589 3,545 1,040 9,174 539,553 548,727 — 8,996 Equipment financing 2,005 306 2,020 4,331 633,080 637,411 1 2,639 Condominium association — — — — 55,185 55,185 — — Total commercial loans and leases 6,594 3,851 3,060 13,505 1,227,818 1,241,323 1 11,635 Indirect automobile 1,492 477 76 2,045 17,332 19,377 — 417 Consumer loans: Residential mortgage — — 229 229 506,599 506,828 — 2,251 Home equity 51 — 106 157 206,678 206,835 — 159 Other consumer 273 3 34 310 11,748 12,058 1 42 Total consumer loans 324 3 369 696 725,025 725,721 1 2,452 Total originated loans and leases $ 8,864 $ 6,478 $ 5,049 $ 20,391 $ 4,200,162 $ 4,220,553 $ 210 $ 17,987 At June 30, 2015 Past Due Loans and Leases Past 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Due Greater Than 90 Days and Accruing Nonaccrual Loans and Leases (In Thousands) Acquired: Commercial real estate loans: Commercial real estate mortgage $ 1,183 $ 527 $ 4,409 $ 6,119 $ 221,397 $ 227,516 $ 4,409 $ — Multi-family mortgage — — 2,391 2,391 48,788 51,179 2,391 — Construction — — — — 531 531 — — Total commercial real estate loans 1,183 527 6,800 8,510 270,716 279,226 6,800 — Commercial loans and leases: Commercial 941 — 3,611 4,552 25,269 29,821 343 3,320 Equipment financing 26 — — 26 11,010 11,036 — — Total commercial loans and leases 967 — 3,611 4,578 36,279 40,857 343 3,320 Consumer loans: Residential mortgage 912 — 2,862 3,774 92,471 96,245 2,692 170 Home equity 562 164 1,126 1,852 90,709 92,561 175 1,985 Other consumer — — — — 139 139 — — Total consumer loans 1,474 164 3,988 5,626 183,319 188,945 2,867 2,155 Total acquired loans and leases $ 3,624 $ 691 $ 14,399 $ 18,714 $ 490,314 $ 509,028 $ 10,010 $ 5,475 Total loans and leases $ 12,488 $ 7,169 $ 19,448 $ 39,105 $ 4,690,476 $ 4,729,581 $ 10,220 $ 23,462 At December 31, 2014 Past Due Loans and Leases Past 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Due Greater Than 90 Days and Accruing Nonaccrual Loans and Leases (In Thousands) Originated: Commercial real estate loans: Commercial real estate mortgage $ 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 31-60 Days 61-90 Days Greater Than 90 Days Total Current Total Loans and Leases Due Greater Than 90 Days and Accruing Nonaccrual Loans and Leases (In Thousands) Acquired: Commercial real estate loans: Commercial real estate mortgage $ 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 loan and leases $ 12,439 $ 8,117 $ 14,364 $ 34,920 $ 4,787,687 $ 4,822,607 $ 6,008 $ 13,714 Commercial Real Estate Loans — At June 30, 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 mortgage loans — 37.2% ; multi-family mortgage loans — 13.3% ; and construction loans — 2.7% . 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 — At June 30, 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 — 12.2% ; equipment financing loans — 13.7% ; 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. Indirect Automobile Loans — At June 30, 2015 , indirect automobile loans represented 0.4% of the Company’s total loan and lease portfolio. Determination of the allowance for loan and lease losses for this portfolio is based primarily on payment status and historical loss rates. Consumer Loans — At June 30, 2015 , 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 — 12.8% ; home equity loans — 6.3% ; 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 indicators 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 June 30, 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 $ 5,198 $ 5,193 $ — $ 2,751 $ 2,748 $ — Commercial 14,494 14,468 — 13,440 13,421 — Consumer 3,951 3,946 — 3,055 3,048 — Total originated with no related allowance recorded 23,643 23,607 — 19,246 19,217 — With an allowance recorded: Commercial real estate 4,087 4,087 88 4,119 4,119 108 Commercial 6,462 6,454 2,405 2,019 2,011 768 Consumer 163 162 — 176 176 10 Total originated with an allowance recorded 10,712 10,703 2,493 6,314 6,306 886 Total originated impaired loans and leases 34,355 34,310 2,493 25,560 25,523 886 Acquired: With no related allowance recorded: Commercial real estate 8,263 8,264 — 9,413 9,428 — Commercial 4,824 4,824 — 6,049 6,047 — Consumer 8,263 8,278 — 6,688 6,688 — Total acquired with no related allowance recorded 21,350 21,366 — 22,150 22,163 — With an allowance recorded: Commercial real estate — — — 244 244 22 Commercial 598 598 238 478 478 214 Consumer 366 366 47 225 225 41 Total acquired with an allowance recorded 964 964 285 947 947 277 Total acquired impaired loans and leases 22,314 22,330 285 23,097 23,110 277 Total impaired loans and leases $ 56,669 $ 56,640 $ 2,778 $ 48,657 $ 48,633 $ 1,163 (1) Includes originated and acquired nonaccrual loans of $16.3 million and $5.5 million , respectively, at June 30, 2015 . (2) Includes originated and acquired nonaccrual loans of $7.1 million and $4.6 million , respectively, at December 31, 2014 . Three Months Ended June 30, 2015 June 30, 2014 Average Interest Average Interest (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 5,204 $ 21 $ 947 $ 12 Commercial 14,942 151 5,711 62 Consumer 3,966 15 128 — Total originated with no related allowance recorded 24,112 187 6,786 74 With an allowance recorded: Commercial real estate 4,092 49 3,010 22 Commercial 6,497 3 3,800 24 Consumer 165 — 3,582 15 Total originated with an allowance recorded 10,754 52 10,392 61 Total originated impaired loans and leases 34,866 239 17,178 135 Acquired: With no related allowance recorded: Commercial real estate 8,596 38 20,402 182 Commercial 4,931 17 6,775 23 Consumer 8,295 14 4,807 5 Total acquired with no related allowance recorded 21,822 69 31,984 210 With an allowance recorded: Commercial real estate — — 1,522 3 Commercial 598 — 1,948 14 Consumer 370 3 770 1 Total acquired with an allowance recorded 968 3 4,240 18 Total acquired impaired loans and leases 22,790 72 36,224 228 Total impaired loans and leases $ 57,656 $ 311 $ 53,402 $ 363 Six Months Ended June 30, 2015 June 30, 2014 Average Interest Average Interest (In Thousands) Originated: With no related allowance recorded: Commercial real estate $ 5,066 $ 44 $ 2,422 $ 48 Commercial 15,086 303 4,796 70 Consumer 4,023 30 1,980 13 Total originated with no related allowance recorded 24,175 377 9,198 131 With an allowance recorded: Commercial real estate 4,100 99 1,587 22 Commercial 6,180 6 3,728 48 Consumer 168 — 1,940 15 Total originated with an allowance recorded 10,448 105 7,255 85 Total originated impaired loans and leases 34,623 482 16,453 216 Acquired: With no related allowance recorded: Commercial real estate 9,462 75 13,990 228 Commercial 4,717 32 7,498 59 Consumer 7,843 29 6,539 10 Total acquired with no related allowance recorded 22,022 136 28,027 297 With an allowance recorded: Commercial real estate 122 — 2,971 40 Commercial 735 — 1,247 15 Consumer 365 5 385 1 Total acquired with an allowance recorded 1,222 5 4,603 56 Total acquired impaired loans and leases 23,244 141 32,630 353 Total impaired loans and leases $ 57,867 $ 623 $ 49,083 $ 569 The following tables present information regarding impaired and non-impaired loans and leases at the dates indicated: At June 30, 2015 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Allowance for Loan and Lease Losses: Originated: Individually evaluated for impairment $ 88 $ 2,405 $ — $ — $ — $ 2,493 Collectively evaluated for impairment 27,471 17,291 381 3,547 2,560 51,250 Total originated loans and leases 27,559 19,696 381 3,547 2,560 53,743 Acquired: Individually evaluated for impairment — 238 — 46 — 284 Collectively evaluated for impairment 620 199 — 61 — 880 Acquired with deteriorated credit quality 1,037 96 — 358 — 1,491 Total acquired loans and leases 1,657 533 — 465 — 2,655 Total allowance for loan and lease losses $ 29,216 $ 20,229 $ 381 $ 4,012 $ 2,560 $ 56,398 Loans and Leases: Originated: Individually evaluated for impairment $ 9,285 $ 20,956 $ — $ 4,114 $ — $ 34,355 Collectively evaluated for impairment 2,224,847 1,220,367 19,377 721,607 — 4,186,198 Total originated loans and leases 2,234,132 1,241,323 19,377 725,721 — 4,220,553 Acquired: Individually evaluated for impairment 605 4,667 — 3,370 — 8,642 Collectively evaluated for impairment 79,356 22,915 — 118,337 — 220,608 Acquired with deteriorated credit quality 199,265 13,275 — 67,238 — 279,778 Total acquired loans and leases 279,226 40,857 — 188,945 — 509,028 Total loans and leases $ 2,513,358 $ 1,282,180 $ 19,377 $ 914,666 $ — $ 4,729,581 At December 31, 2014 Commercial Real Estate Commercial Indirect Automobile Consumer Unallocated Total (In Thousands) Allowance for Loan and Lease Losses: |