Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses | Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses Loan and lease receivables consist of the following: June 30, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 196,032 $ 200,387 Commercial real estate — non-owner occupied 485,962 470,236 Land development 45,033 40,154 Construction 188,036 125,157 Multi-family 137,388 136,978 1-4 family 35,569 44,976 Total commercial real estate 1,088,020 1,017,888 Commercial and industrial 447,540 429,002 Direct financing leases, net 32,001 30,787 Consumer and other: Home equity and second mortgages 7,962 7,262 Other 21,075 18,099 Total consumer and other 29,037 25,361 Total gross loans and leases receivable 1,596,598 1,503,038 Less: Allowance for loan and lease losses 20,932 18,763 Deferred loan fees 1,645 1,443 Loans and leases receivable, net $ 1,574,021 $ 1,482,832 The total amount of the Corporation’s ownership of SBA loans comprised of the following: June 30, December 31, (In Thousands) Retained, unguaranteed portions of sold SBA loans $ 26,030 $ 30,071 Other SBA loans (1) 23,341 22,254 Total SBA loans $ 49,371 $ 52,325 (1) Primarily consisted of SBA Express loans and impaired SBA loans that were repurchased from the secondary market, all of which were not saleable as of June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018 and December 31, 2017 , $9.0 million and $11.1 million of SBA loans were considered impaired, respectively. Loans transferred to third parties consist of the guaranteed portions of SBA loans which the Corporation sold in the secondary market, participation interests in other originated loans and residential real estate loans. The total principal amount of the guaranteed portions of SBA loans sold during the three months ended June 30, 2018 and 2017 was $3.2 million and $5.9 million , respectively. The total principal amount of the guaranteed portions of SBA loans sold during the six months ended June 30, 2018 and 2017 was $6.3 million and $9.2 million , respectively. Each of the transfers of these financial assets met the qualifications for sale accounting, and therefore all of the loans transferred during the three and six months ended June 30, 2018 and 2017 have been derecognized in the unaudited Consolidated Financial Statements. The guaranteed portions of SBA loans were transferred at their fair value and the related gain was recognized upon the transfer as non-interest income in the unaudited Consolidated Financial Statements. The total outstanding balance of sold SBA loans at June 30, 2018 and December 31, 2017 was $89.5 million and $100.3 million , respectively. The total principal amount of transferred participation interests in other originated commercial loans during the three months ended June 30, 2018 and 2017 was $14.8 million and $8.7 million , respectively. The total principal amount of transferred participation interests in other originated commercial loans during the six months ended June 30, 2018 and 2017 was $34.4 million and $20.7 million , respectively, all of which were treated as sales and derecognized under the applicable accounting guidance at the time of transfer. No gain or loss was recognized on participation interests in other originated loans as they were transferred at or near the date of loan origination and the payments received for servicing the portion of the loans participated represents adequate compensation. The total outstanding balance of these transferred loans at June 30, 2018 and December 31, 2017 was $112.7 million and $106.4 million , respectively. As of June 30, 2018 and December 31, 2017 , the total amount of the Corporation’s partial ownership of these transferred loans on the unaudited Consolidated Balance Sheets was $193.7 million and $181.7 million , respectively. No loans in this participation portfolio were considered impaired as of June 30, 2018 and December 31, 2017 . The Corporation does not share in the participant’s portion of any potential charge-offs. The total amount of loan participations purchased on the unaudited Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 was $610,000 and $650,000 , respectively. The following tables illustrate ending balances of the Corporation’s loan and lease portfolio, including impaired loans by class of receivable, and considering certain credit quality indicators: June 30, 2018 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 160,650 $ 11,995 $ 13,341 $ 10,046 $ 196,032 Commercial real estate — non-owner occupied 464,794 20,072 1,065 31 485,962 Land development 41,690 1,032 — 2,311 45,033 Construction 185,439 501 217 1,879 188,036 Multi-family 137,388 — — — 137,388 1-4 family 32,554 1,533 721 761 35,569 Total commercial real estate 1,022,515 35,133 15,344 15,028 1,088,020 Commercial and industrial 360,855 19,636 51,091 15,958 447,540 Direct financing leases, net 30,459 225 1,317 — 32,001 Consumer and other: Home equity and second mortgages 7,956 5 — 1 7,962 Other 20,722 — — 353 21,075 Total consumer and other 28,678 5 — 354 29,037 Total gross loans and leases receivable $ 1,442,507 $ 54,999 $ 67,752 $ 31,340 $ 1,596,598 Category as a % of total portfolio 90.36 % 3.44 % 4.24 % 1.96 % 100.00 % December 31, 2017 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 166,018 $ 18,442 $ 8,850 $ 7,077 $ 200,387 Commercial real estate — non-owner occupied 441,246 27,854 1,102 34 470,236 Land development 36,470 1,057 — 2,627 40,154 Construction 121,528 757 — 2,872 125,157 Multi-family 136,978 — — — 136,978 1-4 family 34,598 7,735 1,220 1,423 44,976 Total commercial real estate 936,838 55,845 11,172 14,033 1,017,888 Commercial and industrial 341,875 25,344 49,453 12,330 429,002 Direct financing leases, net 28,866 342 1,579 — 30,787 Consumer and other: Home equity and second mortgages 7,250 8 — 4 7,262 Other 17,745 — — 354 18,099 Total consumer and other 24,995 8 — 358 25,361 Total gross loans and leases receivable $ 1,332,574 $ 81,539 $ 62,204 $ 26,721 $ 1,503,038 Category as a % of total portfolio 88.66 % 5.42 % 4.14 % 1.78 % 100.00 % Each credit is evaluated for proper risk rating upon origination, at the time of each subsequent renewal, upon receipt and evaluation of updated financial information from the Corporation’s borrowers or as other circumstances dictate. The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its loans and leases. The risk rating grades follow a consistent definition and are then applied to specific loan types based on the nature of the loan. Each risk rating is subjective and, depending on the size and nature of the credit, subject to various levels of review and concurrence on the stated risk rating. In addition to its nine grade risk rating system, the Corporation groups loans into four loan and related risk categories which determine the level and nature of review by management. Category I — Loans and leases in this category are performing in accordance with the terms of the contract and generally exhibit no immediate concerns regarding the security and viability of the underlying collateral, financial stability of the borrower, integrity or strength of the borrowers’ management team or the industry in which the borrower operates. The Corporation monitors Category I loans and leases through payment performance, continued maintenance of its personal relationships with such borrowers and continued review of such borrowers’ compliance with the terms of their respective agreements. Category II — Loans and leases in this category are beginning to show signs of deterioration in one or more of the Corporation’s core underwriting criteria such as financial stability, management strength, industry trends or collateral values. Management will place credits in this category to allow for proactive monitoring and resolution with the borrower to possibly mitigate the area of concern and prevent further deterioration or risk of loss to the Corporation. Category II loans are considered performing but are monitored frequently by the assigned business development officer and by subcommittees of the Bank’s Loan Committee. Category III — Loans and leases in this category are identified by management as warranting special attention. However, the balance in this category is not intended to represent the amount of adversely classified assets held by the Bank. Category III loans and leases generally exhibit undesirable characteristics, such as evidence of adverse financial trends and conditions, managerial problems, deteriorating economic conditions within the related industry or evidence of adverse public filings and may exhibit collateral shortfall positions. Management continues to believe that it will collect all contractual principal and interest in accordance with the original terms of the contracts relating to the loans and leases in this category, and therefore Category III loans are considered performing with no specific reserves established for this category. Category III loans are monitored by management and subcommittees of the Bank’s Loan Committee on a monthly basis and the Bank’s Board of Directors at each of their regularly scheduled meetings. Category IV — Loans and leases in this category are considered to be impaired. Impaired loans and leases, with the exception of performing troubled debt restructurings, have been placed on non-accrual as management has determined that it is unlikely that the Bank will receive the contractual principal and interest in accordance with the original terms of the agreement. Impaired loans are individually evaluated to assess the need for the establishment of specific reserves or charge-offs. When analyzing the adequacy of collateral, the Corporation obtains external appraisals at least annually for impaired loans and leases. External appraisals are obtained from the Corporation’s approved appraiser listing and are independently reviewed to monitor the quality of such appraisals. To the extent a collateral shortfall position is present, a specific reserve or charge-off will be recorded to reflect the magnitude of the impairment. Loans and leases in this category are monitored by management and subcommittees of the Bank’s Loan Committee on a monthly basis and the Bank’s Board of Directors at each of their regularly scheduled meetings. Utilizing regulatory classification terminology, the Corporation identified $42.5 million and $32.7 million of loans and leases as Substandard as of June 30, 2018 and December 31, 2017 , respectively. No loans and leases were identified as Doubtful as of June 30, 2018 . The Corporation identified $4.7 million of loans and leases as Doubtful as of December 31, 2017 . Additionally, no loans were considered Special Mention or Loss as of either June 30, 2018 or December 31, 2017 . The population of Substandard loans is a subset of Category III and Category IV loans. The delinquency aging of the loan and lease portfolio by class of receivable was as follows: June 30, 2018 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 186,038 $ 186,038 Non-owner occupied — — — — 485,931 485,931 Land development — — — — 42,722 42,722 Construction — — — — 186,157 186,157 Multi-family — — — — 137,388 137,388 1-4 family — — — — 35,000 35,000 Commercial and industrial 1,995 — — 1,995 429,591 431,586 Direct financing leases, net — — — — 32,001 32,001 Consumer and other: Home equity and second mortgages — — — — 7,962 7,962 Other — — — — 20,722 20,722 Total 1,995 — — 1,995 1,563,512 1,565,507 Non-accruing loans and leases Commercial real estate: Owner occupied — — 3,353 3,353 6,641 9,994 Non-owner occupied 31 — — 31 — 31 Land development — — — — 2,311 2,311 Construction — — 1,879 1,879 — 1,879 Multi-family — — — — — — 1-4 family — — 529 529 40 569 Commercial and industrial 1,557 1,222 9,378 12,157 3,797 15,954 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 304 304 49 353 Total 1,588 1,222 15,443 18,253 12,838 — 31,091 Total loans and leases Commercial real estate: Owner occupied — — 3,353 3,353 192,679 196,032 Non-owner occupied 31 — — 31 485,931 485,962 Land development — — — — 45,033 45,033 Construction — — 1,879 1,879 186,157 188,036 Multi-family — — — — 137,388 137,388 1-4 family — — 529 529 35,040 35,569 Commercial and industrial 3,552 1,222 9,378 14,152 433,388 447,540 Direct financing leases, net — — — — 32,001 32,001 Consumer and other: Home equity and second mortgages — — — — 7,962 7,962 Other — — 304 304 20,771 21,075 Total $ 3,583 $ 1,222 $ 15,443 $ 20,248 $ 1,576,350 $ 1,596,598 Percent of portfolio 0.22 % 0.08 % 0.97 % 1.27 % 98.73 % 100.00 % December 31, 2017 30-59 60-89 Greater Total Past Due Current Total Loans and Leases (Dollars in Thousands) Accruing loans and leases Commercial real estate: Owner occupied $ — $ — $ — $ — $ 193,366 $ 193,366 Non-owner occupied — — — — 470,202 470,202 Land development — — — — 37,528 37,528 Construction — 196 — 196 122,089 122,285 Multi-family — — — — 136,978 136,978 1-4 family 496 — — 496 43,319 43,815 Commercial and industrial 1,169 197 — 1,366 415,315 416,681 Direct financing leases, net — — — — 30,787 30,787 Consumer and other: Home equity and second mortgages 106 — — 106 7,156 7,262 Other — — — — 17,745 17,745 Total 1,771 393 — 2,164 1,474,485 1,476,649 Non-accruing loans and leases Commercial real estate: Owner occupied 405 — 4,836 5,241 1,780 7,021 Non-owner occupied — — — — 34 34 Land development — — — — 2,626 2,626 Construction — — 2,872 2,872 — 2,872 Multi-family — — — — — — 1-4 family — — 948 948 213 1,161 Commercial and industrial 782 — 7,349 8,131 4,190 12,321 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 345 345 9 354 Total 1,187 — 16,350 17,537 8,852 26,389 Total loans and leases Commercial real estate: Owner occupied 405 — 4,836 5,241 195,146 200,387 Non-owner occupied — — — — 470,236 470,236 Land development — — — — 40,154 40,154 Construction — 196 2,872 3,068 122,089 125,157 Multi-family — — — — 136,978 136,978 1-4 family 496 — 948 1,444 43,532 44,976 Commercial and industrial 1,951 197 7,349 9,497 419,505 429,002 Direct financing leases, net — — — — 30,787 30,787 Consumer and other: Home equity and second mortgages 106 — — 106 7,156 7,262 Other — — 345 345 17,754 18,099 Total $ 2,958 $ 393 $ 16,350 $ 19,701 $ 1,483,337 $ 1,503,038 Percent of portfolio 0.20 % 0.03 % 1.09 % 1.32 % 98.68 % 100.00 % The Corporation’s total impaired assets consisted of the following: June 30, December 31, (In Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 9,994 $ 7,021 Commercial real estate — non-owner occupied 31 34 Land development 2,311 2,626 Construction 1,879 2,872 Multi-family — — 1-4 family 569 1,161 Total non-accrual commercial real estate 14,784 13,714 Commercial and industrial 15,954 12,321 Direct financing leases, net — — Consumer and other: Home equity and second mortgages — — Other 353 354 Total non-accrual consumer and other loans 353 354 Total non-accrual loans and leases 31,091 26,389 Foreclosed properties, net 1,484 1,069 Total non-performing assets 32,575 27,458 Performing troubled debt restructurings 249 332 Total impaired assets $ 32,824 $ 27,790 June 30, December 31, Total non-accrual loans and leases to gross loans and leases 1.95 % 1.76 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 2.04 1.83 Total non-performing assets to total assets 1.71 1.53 Allowance for loan and lease losses to gross loans and leases 1.31 1.25 Allowance for loan and lease losses to non-accrual loans and leases 67.32 71.10 As of June 30, 2018 and December 31, 2017 , $8.4 million and $8.8 million of the non-accrual loans and leases were considered troubled debt restructurings, respectively. There were no unfunded commitments associated with troubled debt restructured loans and leases as of June 30, 2018 . All loans and leases modified as a troubled debt restructuring are measured for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a default, is considered in the determination of an appropriate level of the allowance for loan and lease losses. During the six months ended June 30, 2018 , no loans were modified to a troubled debt restructuring. The following table provides the number of loans modified in a troubled debt restructuring during the six months ended June 30, 2017 and the pre- and post-modification recorded investment by class of receivable: For the Six Months Ended June 30, 2017 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in Thousands) Commercial and industrial 2 $ 3,714 $ 3,714 Consumer and other 1 17 17 Total 3 $ 3,731 $ 3,731 During the six months ended June 30, 2017 , the troubled debt restructurings included a combination of extension of terms and interest rate concessions. There were no loans and leases modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the six months ended June 30, 2018 and 2017 . The following represents additional information regarding the Corporation’s impaired loans and leases, including performing troubled debt restructurings, by class: As of and for the Six Months Ended June 30, 2018 Recorded Unpaid Impairment Average (1) Foregone Interest Net (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 10,046 $ 11,345 $ — $ 6,311 $ 270 $ 162 $ 108 Non-owner occupied 31 71 — 35 1 — 1 Land development 2,311 6,608 — 2,481 34 — 34 Construction 1,879 2,872 — 2,432 106 — 106 Multi-family — — — — — — — 1-4 family 761 1,032 — 1,066 30 74 (44 ) Commercial and industrial 3,533 5,140 — 3,031 188 149 39 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 1 1 — 2 — 29 (29 ) Other 304 970 — 313 28 — 28 Total 18,866 28,039 — 15,671 657 414 243 With impairment reserve recorded: Commercial real estate: Owner occupied — — — — — — — Non-owner occupied — — — — — — — Land development — — — — — — — — — — Construction — — — — — — — — — — Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 12,425 14,735 4,658 8,699 831 — 831 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 49 49 49 8 — — — Total 12,474 14,784 4,707 8,707 831 — 831 Total: Commercial real estate: Owner occupied 10,046 11,345 — 6,311 270 162 108 Non-owner occupied 31 71 — 35 1 — 1 Land development 2,311 6,608 — 2,481 34 — 34 Construction 1,879 2,872 — 2,432 106 — 106 Multi-family — — — — — — — 1-4 family 761 1,032 — 1,066 30 74 (44 ) Commercial and industrial 15,958 19,875 4,658 11,730 1,019 149 870 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 1 1 — 2 — 29 (29 ) Other 353 1,019 49 321 28 — 28 Grand total $ 31,340 $ 42,823 $ 4,707 $ 24,378 $ 1,488 $ 414 $ 1,074 (1) Average recorded investment is calculated primarily using daily average balances. As of and for the Year Ended December 31, 2017 Recorded Investment Unpaid Principal Balance Impairment Reserve Average Recorded Investment (1) Foregone Interest Income Interest Income Recognized Net Foregone Interest Income (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 7,077 $ 7,077 $ — $ 5,549 $ 613 $ — $ 613 Non-owner occupied 34 75 — 1,830 97 226 (129 ) Land development 2,627 5,297 — 3,092 84 — 84 Construction — — — 2,000 134 214 (80 ) Multi-family — — — 1 — — — 1-4 family 1,423 1,706 — 2,146 53 7 46 Commercial and industrial 5,465 6,502 — 3,634 858 7 851 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 4 3 — 7 — — — Other 345 1,011 — 365 59 — 59 Total 16,975 21,671 — 18,624 1,898 454 1,444 With impairment reserve recorded: Commercial real estate: Owner occupied — — — — — — — Non-owner occupied — — — — — — — Land development — — — — — — — Construction 2,872 2,872 415 2,252 158 — 158 Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 6,865 8,813 4,067 12,288 639 — 639 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 9 9 9 — — — — Total 9,746 11,694 4,491 14,540 797 — 797 Total: Commercial real estate: Owner occupied 7,077 7,077 — 5,549 613 — 613 Non-owner occupied 34 75 — 1,830 97 226 (129 ) Land development 2,627 5,297 — 3,092 84 — 84 Construction 2,872 2,872 415 4,252 292 214 78 Multi-family — — — 1 — — — 1-4 family 1,423 1,706 — 2,146 53 7 46 Commercial and industrial 12,330 15,315 4,067 15,922 1,497 7 1,490 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages 4 3 — 7 — — — Other 354 1,020 9 365 59 — 59 Grand total $ 26,721 $ 33,365 $ 4,491 $ 33,164 $ 2,695 $ 454 $ 2,241 (1) Average recorded investment is calculated primarily using daily average balances. The difference between the recorded investment of loans and leases and the unpaid principal balance of $11.5 million and $6.6 million as of June 30, 2018 and December 31, 2017 , respectively, represents partial charge-offs of loans and leases resulting from losses due to the appraised value of the collateral securing the loans and leases being below the carrying values of the loans and leases. Impaired loans and leases also included $249,000 and $332,000 of loans as of June 30, 2018 and December 31, 2017 , respectively, that were performing troubled debt restructurings, and although not on non-accrual, were reported as impaired due to the concession in terms. When a loan is placed on non-accrual, interest accrual is discontinued and previously accrued but uncollected interest is deducted from interest income. Cash payments collected on non-accrual loans are first applied to such loan’s principal. Foregone interest represents the interest that was contractually due on the loan but not received or recorded. To the extent the amount of principal on a non-accrual loan is fully collected and additional cash is received, the Corporation will recognize interest income. To determine the level and composition of the allowance for loan and lease losses, the Corporation categorizes the portfolio into segments with similar risk characteristics. First, the Corporation evaluates loans and leases for potential impairment classification. The Corporation analyzes each loan and lease determined to be impaired on an individual basis to determine a specific reserve based upon the estimated value of the underlying collateral for collateral-dependent loans, or alternatively, the present value of expected cash flows. The Corporation applies historical trends from established risk factors to each category of loans and leases that has not been individually evaluated for the purpose of establishing the general portion of the allowance. A summary of the activity in the allowance for loan and lease losses by portfolio segment is as follows: As of and for the Three Months Ended June 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 9,990 $ 8,151 $ 497 $ 18,638 Charge-offs (121 ) (168 ) (17 ) (306 ) Recoveries 2 17 2 21 Net charge-offs (119 ) (151 ) (15 ) (285 ) Provision for loan and lease losses 1,276 1,237 66 2,579 Ending balance $ 11,147 $ 9,237 $ 548 $ 20,932 As of and for the Three Months Ended June 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,817 $ 7,943 $ 906 $ 21,666 Charge-offs (51 ) (3,706 ) — (3,757 ) Recoveries 46 66 — 112 Net charge-offs (5 ) (3,640 ) — (3,645 ) Provision for loan and lease losses (809 ) 4,787 (322 ) 3,656 Ending balance $ 12,003 $ 9,090 $ 584 $ 21,677 As of and for the Six Months Ended June 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 10,131 $ 8,225 $ 407 $ 18,763 Charge-offs (2,296 ) (657 ) (37 ) (2,990 ) Recoveries 15 19 71 105 Net charge-offs (2,281 ) (638 ) 34 (2,885 ) Provision for loan and lease losses 3,297 1,650 107 5,054 Ending balance $ 11,147 $ 9,237 $ 548 $ 20,932 As of and for the Six Months Ended June 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,384 $ 7,970 $ 558 $ 20,912 Charge-offs (118 ) (3,761 ) (87 ) (3,966 ) Recoveries 150 312 41 503 Net charge-offs 32 (3,449 ) (46 ) (3,463 ) Provision for loan and lease losses (413 ) 4,569 72 4,228 Ending balance $ 12,003 $ 9,090 $ 584 $ 21,677 The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology. As of June 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 11,147 $ 4,579 $ 499 $ 16,225 Individually evaluated for impairment — 4,658 49 4,707 Loans acquired with deteriorated credit quality — — — — Total $ 11,147 $ 9,237 $ 548 $ 20,932 Loans and lease receivables: Collectively evaluated for impairment $ 1,072,992 $ 463,583 $ 28,683 $ 1,565,258 Individually evaluated for impairment 14,697 15,953 354 31,004 Loans acquired with deteriorated credit quality 331 5 — 336 Total $ 1,088,020 $ 479,541 $ 29,037 $ 1,596,598 As of December 31, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 9,716 $ 4,158 $ 398 $ 14,272 Individually evaluated for impairment 415 4,067 9 4,491 Loans acquired with deteriorated credit quality — — — — Total $ 10,131 $ 8,225 $ 407 $ 18,763 Loans and lease receivables: Collectively evaluated for impairment $ 1,003,855 $ 447,459 $ 25,003 $ 1,476,317 Individually evaluated for impairment 13,506 12,324 358 26,188 Loans acquired with deteriorated credit quality 527 6 — 533 Total $ 1,017,888 $ 459,789 $ 25,361 $ 1,503,038 |