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: September 30, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 203,733 $ 200,387 Commercial real estate — non-owner occupied 487,842 470,236 Land development 45,009 40,154 Construction 132,271 125,157 Multi-family 174,664 136,978 1-4 family 35,729 44,976 Total commercial real estate 1,079,248 1,017,888 Commercial and industrial 457,932 429,002 Direct financing leases, net 31,090 30,787 Consumer and other: Home equity and second mortgages 8,388 7,262 Other 23,451 18,099 Total consumer and other 31,839 25,361 Total gross loans and leases receivable 1,600,109 1,503,038 Less: Allowance for loan and lease losses 20,455 18,763 Deferred loan fees 1,502 1,443 Loans and leases receivable, net $ 1,578,152 $ 1,482,832 The total amount of the Corporation’s ownership of SBA loans comprised of the following: September 30, December 31, (In Thousands) Retained, unguaranteed portions of sold SBA loans $ 26,640 $ 30,071 Other SBA loans (1) 20,183 22,254 Total SBA loans $ 46,823 $ 52,325 (1) Primarily consisted of SBA CAPLine, Express and impaired loans that were repurchased from the secondary market, all of which were not saleable as of September 30, 2018 and December 31, 2017 , respectively. As of September 30, 2018 and December 31, 2017 , $12.0 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 September 30, 2018 and 2017 was $4.5 million and $6.3 million , respectively. The total principal amount of the guaranteed portions of SBA loans sold during the nine months ended September 30, 2018 and 2017 was $10.8 million and $15.5 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 nine months ended September 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 September 30, 2018 and December 31, 2017 was $91.1 million and $100.3 million , respectively. The total principal amount of transferred participation interests in other originated commercial loans during the three months ended September 30, 2018 and 2017 was $17.2 million and $15.9 million , respectively. The total principal amount of transferred participation interests in other originated commercial loans during the nine months ended September 30, 2018 and 2017 was $51.6 million and $36.6 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 September 30, 2018 and December 31, 2017 was $125.7 million and $106.4 million , respectively. As of September 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 $206.0 million and $181.7 million , respectively. No loans in this participation portfolio were considered impaired as of September 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 September 30, 2018 and December 31, 2017 was $590,000 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: September 30, 2018 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 177,434 $ 4,925 $ 10,904 $ 10,470 $ 203,733 Commercial real estate — non-owner occupied 466,855 19,909 1,046 32 487,842 Land development 41,267 1,485 — 2,257 45,009 Construction 130,183 — 209 1,879 132,271 Multi-family 174,664 — — — 174,664 1-4 family 32,741 1,522 714 752 35,729 Total commercial real estate 1,023,144 27,841 12,873 15,390 1,079,248 Commercial and industrial 370,015 27,084 45,874 14,959 457,932 Direct financing leases, net 28,197 1,709 1,184 — 31,090 Consumer and other: Home equity and second mortgages 8,384 4 — — 8,388 Other 23,000 — — 451 23,451 Total consumer and other 31,384 4 — 451 31,839 Total gross loans and leases receivable $ 1,452,740 $ 56,638 $ 59,931 $ 30,800 $ 1,600,109 Category as a % of total portfolio 90.79 % 3.54 % 3.75 % 1.92 % 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 $38.8 million and $32.7 million of loans and leases as Substandard as of September 30, 2018 and December 31, 2017 , respectively. No loans and leases were identified as Doubtful as of September 30, 2018 . The Corporation identified $4.7 million of loans and leases as Doubtful as of 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: September 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 $ — $ 115 $ — $ 115 $ 193,148 $ 193,263 Non-owner occupied 742 — — 742 487,068 487,810 Land development — — — — 42,752 42,752 Construction — — — — 130,392 130,392 Multi-family — — — — 174,664 174,664 1-4 family — — — — 35,161 35,161 Commercial and industrial 1,944 — — 1,944 441,032 442,976 Direct financing leases, net — — — — 31,090 31,090 Consumer and other: Home equity and second mortgages — — — — 8,388 8,388 Other — — — — 23,000 23,000 Total 2,686 115 — 2,801 1,566,695 1,569,496 Non-accruing loans and leases Commercial real estate: Owner occupied 1,144 — 1,522 2,666 7,804 10,470 Non-owner occupied — — 32 32 — 32 Land development — — 121 121 2,136 2,257 Construction — — 1,879 1,879 — 1,879 Multi-family — — — — — — 1-4 family — — 529 529 39 568 Commercial and industrial 2,364 43 7,770 10,177 4,779 14,956 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 291 291 160 451 Total 3,508 43 12,144 15,695 14,918 — 30,613 Total loans and leases Commercial real estate: Owner occupied 1,144 115 1,522 2,781 200,952 203,733 Non-owner occupied 742 — 32 774 487,068 487,842 Land development — — 121 121 44,888 45,009 Construction — — 1,879 1,879 130,392 132,271 Multi-family — — — — 174,664 174,664 1-4 family — — 529 529 35,200 35,729 Commercial and industrial 4,308 43 7,770 12,121 445,811 457,932 Direct financing leases, net — — — — 31,090 31,090 Consumer and other: Home equity and second mortgages — — — — 8,388 8,388 Other — — 291 291 23,160 23,451 Total $ 6,194 $ 158 $ 12,144 $ 18,496 $ 1,581,613 $ 1,600,109 Percent of portfolio 0.39 % 0.01 % 0.76 % 1.16 % 98.84 % 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: September 30, December 31, (In Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 10,470 $ 7,021 Commercial real estate — non-owner occupied 32 34 Land development 2,257 2,626 Construction 1,879 2,872 Multi-family — — 1-4 family 568 1,161 Total non-accrual commercial real estate 15,206 13,714 Commercial and industrial 14,956 12,321 Direct financing leases, net — — Consumer and other: Home equity and second mortgages — — Other 451 354 Total non-accrual consumer and other loans 451 354 Total non-accrual loans and leases 30,613 26,389 Foreclosed properties, net 1,454 1,069 Total non-performing assets 32,067 27,458 Performing troubled debt restructurings 187 332 Total impaired assets $ 32,254 $ 27,790 September 30, December 31, Total non-accrual loans and leases to gross loans and leases 1.91 % 1.76 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 2.00 1.83 Total non-performing assets to total assets 1.69 1.53 Allowance for loan and lease losses to gross loans and leases 1.28 1.25 Allowance for loan and lease losses to non-accrual loans and leases 66.82 71.10 As of September 30, 2018 and December 31, 2017 , $8.1 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 September 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 nine months ended September 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 and the pre- and post-modification recorded investment by class of receivable: For the Nine Months Ended September 30, 2017 Number of Loans Pre-Modification Recorded Investment Post-Modification Recorded Investment (Dollars in Thousands) Commercial and industrial 4 $ 4,374 $ 4,400 Consumer and other 1 17 17 Total 5 $ 4,391 $ 4,417 During the nine months ended September 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 nine months ended September 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 Nine Months Ended September 30, 2018 Recorded (1) Unpaid Impairment Average (2) Foregone Interest Net (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 9,326 $ 12,451 $ — $ 7,305 $ 614 $ 197 $ 417 Non-owner occupied 32 72 — 34 1 — 1 Land development 2,136 6,432 — 2,373 33 — 33 Construction — — — 2,039 — — — Multi-family — — — — — — — 1-4 family 752 1,022 — 961 40 76 (36 ) Commercial and industrial 4,434 5,094 — 3,133 870 442 428 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — 1 — 45 (45 ) Other 291 957 — 306 42 — 42 Total 16,971 26,028 — 16,152 1,600 760 840 With impairment reserve recorded: Commercial real estate: Owner occupied 1,144 1,144 193 255 64 — 64 Non-owner occupied — — — — — — — Land development 121 121 — 35 39 — 2 — — 2 Construction 1,879 2,872 — 379 207 — 162 — — 162 Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 10,525 10,867 3,802 9,810 716 — 716 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other 160 160 160 8 — — — Total 13,829 15,164 4,569 10,319 944 — 944 Total: Commercial real estate: Owner occupied 10,470 13,595 193 7,560 678 197 481 Non-owner occupied 32 72 — 34 1 — 1 Land development 2,257 6,553 35 2,412 35 — 35 Construction 1,879 2,872 379 2,246 162 — 162 Multi-family — — — — — — — 1-4 family 752 1,022 — 961 40 76 (36 ) Commercial and industrial 14,959 15,961 3,802 12,943 1,586 442 1,144 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — 1 — 45 (45 ) Other 451 1,117 160 314 42 — 42 Grand total $ 30,800 $ 41,192 $ 4,569 $ 26,471 $ 2,544 $ 760 $ 1,784 (1) The recorded investment represents the unpaid principle balance net of any partial charge-offs. (2) Average recorded investment is calculated primarily using daily average balances. As of and for the Year Ended December 31, 2017 Recorded Investment (1) Unpaid Principal Balance Impairment Reserve Average Recorded Investment (2) 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) The recorded investment represents the unpaid principle balance net of any partial charge-offs. (2) 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 $10.4 million and $6.6 million as of September 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 $187,000 and $332,000 of loans as of September 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 September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 11,147 $ 9,237 $ 548 $ 20,932 Charge-offs (1,826 ) (75 ) (13 ) (1,914 ) Recoveries 7 1,974 2 1,983 Net (charge-offs) recoveries (1,819 ) 1,899 (11 ) 69 Provision for loan and lease losses 2,365 (3,252 ) 341 (546 ) Ending balance $ 11,693 $ 7,884 $ 878 $ 20,455 As of and for the Three Months Ended September 30, 2017 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Beginning balance $ 12,003 $ 9,090 $ 584 $ 21,677 Charge-offs (8 ) (3,217 ) (5 ) (3,230 ) Recoveries 2 2 1 5 Net charge-offs (6 ) (3,215 ) (4 ) (3,225 ) Provision for loan and lease losses (2,462 ) 3,968 (35 ) 1,471 Ending balance $ 9,535 $ 9,843 $ 545 $ 19,923 As of and for the Nine Months Ended September 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 (4,122 ) (732 ) (50 ) (4,904 ) Recoveries 22 1,993 73 2,088 Net (charge-offs) recoveries (4,100 ) 1,261 23 (2,816 ) Provision for loan and lease losses 5,662 (1,602 ) 448 4,508 Ending balance $ 11,693 $ 7,884 $ 878 $ 20,455 As of and for the Nine Months Ended September 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 (126 ) (6,978 ) (92 ) (7,196 ) Recoveries 152 314 42 508 Net recoveries (charge-offs) 26 (6,664 ) (50 ) (6,688 ) Provision for loan and lease losses (2,875 ) 8,537 37 5,699 Ending balance $ 9,535 $ 9,843 $ 545 $ 19,923 The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology. As of September 30, 2018 Commercial Real Estate Commercial and Industrial Consumer and Other Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 11,086 $ 4,082 $ 718 $ 15,886 Individually evaluated for impairment 607 3,802 160 4,569 Loans acquired with deteriorated credit quality — — — — Total $ 11,693 $ 7,884 $ 878 $ 20,455 Loans and lease receivables: Collectively evaluated for impairment $ 1,063,858 $ 474,063 $ 31,388 $ 1,569,309 Individually evaluated for impairment 15,144 14,956 451 30,551 Loans acquired with deteriorated credit quality 246 3 — 249 Total $ 1,079,248 $ 489,022 $ 31,839 $ 1,600,109 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 |