| 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: December 31, December 31, (In Thousands) Commercial real estate: Commercial real estate — owner occupied $ 253,882 $ 226,614 Commercial real estate — non-owner occupied 564,532 516,652 Land development 49,839 51,097 Construction 141,043 109,057 Multi-family 311,556 217,322 1-4 family 38,284 33,359 Total commercial real estate 1,359,136 1,154,101 Commercial and industrial 732,318 503,402 Direct financing leases, net 22,331 28,092 Consumer and other: Home equity and second mortgages 7,833 7,006 Other 28,897 22,664 Total consumer and other 36,730 29,670 Total gross loans and leases receivable 2,150,515 1,715,265 Less: Allowance for loan and lease losses 28,521 19,520 Deferred loan fees 4,545 630 Loans and leases receivable, net $ 2,117,449 $ 1,695,115 As of December 31, 2020, the Corporation had $228.9 million in gross PPP loans outstanding included in the commercial and industrial loan category and deferred processing fees outstanding of $3.5 million included in deferred loan fees. The processing fees are deferred and recognized over the contractual life of the loan, or accelerated at forgiveness, as an adjustment of yield using the interest method. The SBA provides a guaranty to the lender of 100% of principal and interest, unless the lender violated an obligation under the agreement. As loan losses are expected to be immaterial, if any at all, due to the guaranty, management excluded the PPP loans from the allowance for loan and lease losses calculation. Management funded these short-term loans primarily through a combination of excess cash held at the Federal Reserve and from an increase in in-market deposits. The total amount of the Corporation’s ownership of SBA loans on-balance sheet is comprised of the following: December 31, December 31, (In Thousands) SBA 7(a) loans $ 36,266 $ 40,402 SBA 504 loans 26,327 20,592 SBA Express loans and lines of credit 1,251 1,781 SBA PPP loans $ 228,870 $ — Total SBA loans $ 292,714 $ 62,775 As of December 31, 2020 and 2019, $9.3 million and $12.1 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 and participation interests in other, non-SBA originated loans. The total principal amount of the guaranteed portions of SBA loans sold during the year ended December 31, 2020 and 2019 was $29.2 million and $16.1 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 year ended December 31, 2020 and 2019 have been derecognized in the 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 Consolidated Financial Statements. The total outstanding balance of sold SBA loans at December 31, 2020 and 2019 was $79.5 million and $73.8 million, respectively. The total principal amount of transferred participation interests in other, non-SBA originated loans during the year ended December 31, 2020 and 2019 was $48.9 million and $45.4 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, non-SBA 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 December 31, 2020 and 2019 was $153.6 million and $142.8 million, respectively. As of December 31, 2020 and 2019, the total amount of the Corporation’s partial ownership of these transferred loans on the Consolidated Balance Sheets was $276.5 million and $244.6 million, respectively. As of December 31, 2020, the non-SBA originated participation portfolio contained an impaired loan totaling $3.0 million with a sold portion of $4.2 million. There were no loans impaired as of December 31, 2019. For the year ended December 31, 2020, the Corporation charged off $2.8 million of the non-SBA originated participation portfolio. There were no charge-offs for the year ended December 31, 2019. The Corporation does not share in the participant’s portion of any potential charge-offs. The total amount of loan participations purchased on the Consolidated Balance Sheets as of December 31, 2020 and 2019 was $410,000 and $492,000, respectively. Certain of the Corporation’s executive officers, directors, and their related interests are loan clients of the Bank. These loans to related parties are summarized below: December 31, 2020 December 31, 2019 (In Thousands) Balance at beginning of year $ 1,683 $ 1,855 New loans 325 412 Repayments (376) (584) Balance at end of year $ 1,632 $ 1,683 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: December 31, 2020 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 185,943 $ 34,917 $ 27,593 $ 5,429 $ 253,882 Commercial real estate — non-owner occupied 432,053 90,942 37,754 3,783 564,532 Land development 47,777 987 185 890 49,839 Construction 104,083 26,444 10,516 — 141,043 Multi-family 278,145 23,386 10,025 — 311,556 1-4 family 35,053 620 2,315 296 38,284 Total commercial real estate 1,083,054 177,296 88,388 10,398 1,359,136 Commercial and industrial 623,346 27,201 65,616 16,155 732,318 Direct financing leases, net 15,597 730 5,955 49 22,331 Consumer and other: Home equity and second mortgages 7,206 496 91 40 7,833 Other 28,701 175 — 21 28,897 Total consumer and other 35,907 671 91 61 36,730 Total gross loans and leases receivable $ 1,757,904 $ 205,898 $ 160,050 $ 26,663 $ 2,150,515 Category as a % of total portfolio 81.75 % 9.57 % 7.44 % 1.24 % 100.00 % December 31, 2019 Category I II III IV Total (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied $ 187,728 $ 18,455 $ 16,399 $ 4,032 $ 226,614 Commercial real estate — non-owner occupied 459,821 55,524 1,307 — 516,652 Land development 49,132 439 — 1,526 51,097 Construction 108,959 — 98 — 109,057 Multi-family 205,750 11,572 — — 217,322 1-4 family 29,284 1,843 1,759 473 33,359 Total commercial real estate 1,040,674 87,833 19,563 6,031 1,154,101 Commercial and industrial 398,445 34,478 55,904 14,575 503,402 Direct financing leases, net 21,176 577 6,339 — 28,092 Consumer and other: Home equity and second mortgages 6,307 610 89 — 7,006 Other 22,517 — — 147 22,664 Total consumer and other 28,824 610 89 147 29,670 Total gross loans and leases receivable $ 1,489,119 $ 123,498 $ 81,895 $ 20,753 $ 1,715,265 Category as a % of total portfolio 86.82 % 7.20 % 4.77 % 1.21 % 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 primarily 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 asset quality review committees. 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 asset quality review committees on a monthly basis. 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 asset quality review committees on a monthly basis. The delinquency aging of the loan and lease portfolio by class of receivable was as follows: December 31, 2020 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 $ — $ — $ — $ — $ 248,453 $ 248,453 Non-owner occupied — — — — 560,749 560,749 Land development 7,784 — — 7,784 41,165 48,949 Construction — — — — 141,043 141,043 Multi-family — — — — 311,556 311,556 1-4 family — 46 — 46 37,988 38,034 Commercial and industrial 663 111 — 774 715,389 716,163 Direct financing leases, net — — — — 22,282 22,282 Consumer and other: Home equity and second mortgages — — — — 7,793 7,793 Other — — — — 28,876 28,876 Total 8,447 157 — 8,604 2,115,294 2,123,898 Non-accruing loans and leases Commercial real estate: Owner occupied — — 272 272 5,157 5,429 Non-owner occupied — — 3,783 3,783 — 3,783 Land development 890 — — 890 — 890 Construction — — — — — — Multi-family — — — — — — 1-4 family — — — — 250 250 Commercial and industrial 103 342 7,557 8,002 8,153 16,155 Direct financing leases, net — — — — 49 49 Consumer and other: Home equity and second mortgages — — — — 40 40 Other — — 21 21 — 21 Total 993 342 11,633 12,968 13,649 26,617 Total loans and leases Commercial real estate: Owner occupied — — 272 272 253,610 253,882 Non-owner occupied — — 3,783 3,783 560,749 564,532 Land development 8,674 — — 8,674 41,165 49,839 Construction — — — — 141,043 141,043 Multi-family — — — — 311,556 311,556 1-4 family — 46 — 46 38,238 38,284 Commercial and industrial 766 453 7,557 8,776 723,542 732,318 Direct financing leases, net — — — — 22,331 22,331 Consumer and other: Home equity and second mortgages — — — — 7,833 7,833 Other — — 21 21 28,876 28,897 Total $ 9,440 $ 499 $ 11,633 $ 21,572 $ 2,128,943 $ 2,150,515 Percent of portfolio 0.44 % 0.02 % 0.54 % 1.00 % 99.00 % 100.00 % December 31, 2019 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 $ — $ — $ — $ — $ 222,582 $ 222,582 Non-owner occupied — — — — 516,652 516,652 Land development — 990 — 990 48,581 49,571 Construction 309 — — 309 108,748 109,057 Multi-family — — — — 217,322 217,322 1-4 family — — — — 33,026 33,026 Commercial and industrial 2,707 52 — 2,759 486,068 488,827 Direct financing leases, net — — — — 28,092 28,092 Consumer and other: Home equity and second mortgages — — — — 7,006 7,006 Other — — — — 22,517 22,517 Total 3,016 1,042 — 4,058 1,690,594 1,694,652 Non-accruing loans and leases Commercial real estate: Owner occupied — — 342 342 3,690 4,032 Non-owner occupied — — — — — — Land development — — — — 1,526 1,526 Construction — — — — — — Multi-family — — — — — — 1-4 family — 333 — 333 — 333 Commercial and industrial 4,368 2,717 3,123 10,208 4,367 14,575 Direct financing leases, net — — — — — — Consumer and other: Home equity and second mortgages — — — — — — Other — — 147 147 — 147 Total 4,368 3,050 3,612 11,030 9,583 20,613 Total loans and leases Commercial real estate: Owner occupied — — 342 342 226,272 226,614 Non-owner occupied — — — — 516,652 516,652 Land development — 990 — 990 50,107 51,097 Construction 309 — — 309 108,748 109,057 Multi-family — — — — 217,322 217,322 1-4 family — 333 — 333 33,026 33,359 Commercial and industrial 7,075 2,769 3,123 12,967 490,435 503,402 Direct financing leases, net — — — — 28,092 28,092 Consumer and other: Home equity and second mortgages — — — — 7,006 7,006 Other — — 147 147 22,517 22,664 Total $ 7,384 $ 4,092 $ 3,612 $ 15,088 $ 1,700,177 $ 1,715,265 Percent of portfolio 0.43 % 0.24 % 0.21 % 0.88 % 99.12 % 100.00 % The Corporation’s total impaired assets consisted of the following: December 31, December 31, (In Thousands) Non-accrual loans and leases Commercial real estate: Commercial real estate — owner occupied $ 5,429 $ 4,032 Commercial real estate — non-owner occupied 3,783 — Land development 890 1,526 Construction — — Multi-family — — 1-4 family 250 333 Total non-accrual commercial real estate 10,352 5,891 Commercial and industrial 16,155 14,575 Direct financing leases, net 49 — Consumer and other: Home equity and second mortgages 40 — Other 21 147 Total non-accrual consumer and other loans 61 147 Total non-accrual loans and leases 26,617 20,613 Foreclosed properties, net 34 2,919 Total non-performing assets 26,651 23,532 Performing troubled debt restructurings 46 140 Total impaired assets $ 26,697 $ 23,672 December 31, December 31, Total non-accrual loans and leases to gross loans and leases 1.24 % 1.20 % Total non-performing assets to total gross loans and leases plus foreclosed properties, net 1.24 1.37 Total non-performing assets to total assets 1.04 1.12 Allowance for loan and lease losses to gross loans and leases 1.33 1.14 Allowance for loan and lease losses to non-accrual loans and leases 107.15 94.70 As of December 31, 2020 and 2019, $6.5 million and $15.6 million of the non-accrual loans and leases were considered troubled debt restructurings, respectively. The Corporation has allocated $760,000 and $2.7 million of specific reserves to troubled debt restructurings as of December 31, 2020 and 2019, respectively. There were no unfunded commitments associated with troubled debt restructured loans and leases as of December 31, 2020. 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. 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 Year Ended December 31, 2020 2019 Number of Loans Pre-Modification Post-Modification Number of Loans Pre-Modification Post-Modification (Dollars in Thousands) Commercial real estate: Commercial real estate — owner occupied 2 $ 299 $ 272 2 $ 3,774 $ 3,614 Commercial and industrial 3 6,007 617 15 13,372 9,845 Total 5 $ 6,306 $ 889 17 $ 17,146 $ 13,459 Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, principal reduction, or some combination of these concessions. For the year ended December 31, 2020, the modification of terms primarily consisted of payment schedule modifications or principal reductions. There were two commercial and industrial loans for a total of $617,000 and two owner-occupied commercial real estate loans for a total of $272,000 modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the year ended December 31, 2020. There were two commercial and industrial loans for $2.1 million modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the year ended December 31, 2019. 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 Year Ended December 31, 2020 Recorded Investment (1) Unpaid Impairment Average Recorded Investment (2) Foregone Interest Net Foregone (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 4,338 $ 4,365 $ — $ 4,565 $ 291 $ 72 $ 219 Non-owner occupied 3,783 6,563 — 1,519 486 — 486 Land development 890 5,187 — 1,192 14 — 14 Construction — — — — — — — Multi-family — — — — — — — 1-4 family 46 51 — 307 31 141 (110) Commercial and industrial 9,888 12,337 — 13,951 1,219 423 796 Direct financing leases, net — — — 89 — — — Consumer and other: Home equity and second mortgages — — — 1 — — — Other 21 688 — 85 41 — 41 Total 18,966 29,191 — 21,709 2,082 636 1,446 With impairment reserve recorded: Commercial real estate: Owner occupied 1,091 4,792 471 2,349 384 — 384 Non-owner occupied — — — — — — — Land development — — — — — — — Construction — — — — — — — Multi-family — — — — — — — 1-4 family 250 250 29 21 — — — Commercial and industrial 6,267 6,972 3,125 3,585 324 — 324 Direct financing leases, net 49 49 49 39 3 — 3 Consumer and other: Home equity and second mortgages 40 40 7 — 1 — 1 Other — — — — — — — Total 7,697 12,103 3,681 5,994 712 — 712 Total: Commercial real estate: Owner occupied 5,429 9,157 471 6,914 675 72 603 Non-owner occupied 3,783 6,563 — 1,519 486 — 486 Land development 890 5,187 — 1,192 14 — 14 Construction — — — — — — — Multi-family — — — — — — — 1-4 family 296 301 29 328 31 141 (110) Commercial and industrial 16,155 19,309 3,125 17,536 1,543 423 1,120 Direct financing leases, net 49 49 49 128 3 — 3 Consumer and other: Home equity and second mortgages 40 40 7 1 1 — 1 Other 21 688 — 85 41 — 41 Grand total $ 26,663 $ 41,294 $ 3,681 $ 27,703 $ 2,794 $ 636 $ 2,158 (1) The recorded investment represents the unpaid principal 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, 2019 Recorded Investment (1) Unpaid Impairment Average Recorded Investment (2) Foregone Interest Net Foregone (In Thousands) With no impairment reserve recorded: Commercial real estate: Owner occupied $ 387 $ 387 $ — $ 3,285 $ 64 $ 355 $ (291) Non-owner occupied — — — 58 1 — 1 Land development 1,526 5,823 — 1,843 52 6 46 Construction — — — — — — — — — — — Multi-family — — — — — — — 1-4 family 473 478 — 356 19 46 (27) Commercial and industrial 4,779 6,549 — 14,479 1,073 379 694 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — 7 (7) Other 147 813 — 191 48 — 48 Total 7,312 14,050 — 20,212 1,257 793 464 With impairment reserve recorded: Commercial real estate: Owner occupied 3,645 5,004 1,082 1,511 414 — 414 Non-owner occupied — — — — — — — Land development — — — — — — — — — — — Construction — — — — — — — — — — — Multi-family — — — — — — — 1-4 family — — — — — — — Commercial and industrial 9,796 11,179 2,283 2,367 1,022 — 1,022 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — — — Other — — — — — — — Total 13,441 16,183 3,365 3,878 1,436 — 1,436 Total: Commercial real estate: Owner occupied 4,032 5,391 1,082 4,796 478 355 123 Non-owner occupied — — — 58 1 — 1 Land development 1,526 5,823 — 1,843 52 6 46 Construction — — — — — — — Multi-family — — — — — — — 1-4 family 473 478 — 356 19 46 (27) Commercial and industrial 14,575 17,728 2,283 16,846 2,095 379 1,716 Direct financing leases, net — — — — — — — Consumer and other: Home equity and second mortgages — — — — — 7 (7) Other 147 813 — 191 48 — 48 Grand total $ 20,753 $ 30,233 $ 3,365 $ 24,090 $ 2,693 $ 793 $ 1,900 (1) The recorded investment represents the unpaid principal 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 $14.6 million and $9.5 million as of December 31, 2020 and 2019, 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 $46,000 and $140,000 of loans as of December 31, 2020 and 2019, 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. Then, 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 Year Ended December 31, 2020 Commercial Commercial Consumer Total (In Thousands) Beginning balance $ 10,852 $ 8,078 $ 590 $ 19,520 Charge-offs (6,119) (2,007) (13) (8,139) Recoveries 4 325 3 332 Net recoveries (charge-offs) (6,115) (1,682) (10) (7,807) Provision for loan and lease losses 12,420 4,197 191 16,808 Ending balance $ 17,157 $ 10,593 $ 771 $ 28,521 As of and for the Year Ended December 31, 2019 Commercial Commercial Consumer Total (In Thousands) Beginning balance $ 11,662 $ 8,079 $ 684 $ 20,425 Charge-offs — (3,347) (9) (3,356) Recoveries 75 262 29 366 Net (charge-offs) recoveries 75 (3,085) 20 (2,990) Provision for loan and lease losses (885) 3,084 (114) 2,085 Ending balance $ 10,852 $ 8,078 $ 590 $ 19,520 The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology: December 31, 2020 Commercial Commercial Consumer Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 16,657 $ 7,419 $ 764 $ 24,840 Individually evaluated for impairment 500 3,174 7 3,681 Total $ 17,157 $ 10,593 $ 771 $ 28,521 Loans and lease receivables: Collectively evaluated for impairment $ 1,348,738 $ 738,445 $ 36,669 2,123,852 Individually evaluated for impairment 10,398 16,204 61 26,663 Total $ 1,359,136 $ 754,649 $ 36,730 $ 2,150,515 December 31, 2019 Commercial Commercial Consumer Total (In Thousands) Allowance for loan and lease losses: Collectively evaluated for impairment $ 9,770 $ 5,795 $ 590 $ 16,155 Individually evaluated for impairment 1,082 2,283 — 3,365 Total $ 10,852 $ 8,078 $ 590 $ 19,520 Loans and lease receivables: Collectively evaluated for impairment $ 1,148,070 $ 516,919 $ 29,523 $ 1,694,512 Individually evaluated for impairment 6,031 14,575 147 20,753 Total $ 1,154,101 $ 531,494 $ 29,670 $ 1,715,265 The Corporation’s net investment in direct financing leases consists of the following: December 31, December 31, (In Thousands) Minimum lease payments receivable $ 19,106 $ 24,165 Estimated unguaranteed residual values in leased property 5,434 6,732 Unearned lease and residual income (2,209) (2,805) Investment in commercial direct financing leases $ 22,331 $ 28,092 The Corporation leases equipment under direct financing leases expiring in future years. Some of these leases provide for additional rents based on use in excess of a stipulated minimum number of hours and generally allow the lessees to purchase the equipment for fair value at the end of the lease term. Future aggregate maturities of minimum lease payments to be received are as follows: (In Thousands) Maturities during year ended December 31, 2021 $ 6,467 2022 5,332 2023 3,797 2024 2,262 2025 1,036 Thereafter 212 $ 19,106 |
