XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.19.1

LOANS AND LEASES | 3 Months Ended
--- | ---
Mar. 31, 2019
Receivables [Abstract] |
LOANS AND LEASES | 3. LOANS AND LEASES Loans outstanding, excluding those held for sale, by general ledger classification, as of March 31, 2019 and December 31, 2018, consisted of the following:
|  |  |  |  |  | % of |  |  |  |  |  |  | % of |
|  | March 31, |  |  | Totals |  |  | December 31, |  |  | Total |
(Dollars in thousands) |  | 2019 |  |  | Loans |  |  | 2018 |  |  | Loans |
Residential mortgage |  | $ | 569,304 |  |  |  | 14.61 | % |  | $ | 571,570 |  |  |  | 14.55 | %
Multifamily mortgage |  |  | 1,104,406 |  |  |  | 28.34 |  |  |  | 1,135,805 |  |  |  | 28.92 |
Commercial mortgage |  |  | 705,221 |  |  |  | 18.09 |  |  |  | 702,165 |  |  |  | 17.88 |
Commercial loans (including equipment financing) |  |  | 1,406,215 |  |  |  | 36.08 |  |  |  | 1,397,057 |  |  |  | 35.57 |
Home equity lines of credit |  |  | 57,639 |  |  |  | 1.48 |  |  |  | 62,191 |  |  |  | 1.58 |
Consumer loans, including fixed rate home equity loans |  |  | 54,276 |  |  |  | 1.39 |  |  |  | 58,678 |  |  |  | 1.49 |
Other loans |  |  | 355 |  |  |  | 0.01 |  |  |  | 465 |  |  |  | 0.01 |
Total loans |  | $ | 3,897,416 |  |  |  | 100.00 | % |  | $ | 3,927,931 |  |  |  | 100.00 | %
In determining an appropriate amount for the allowance, the Bank segments and evaluates the loan portfolio based on federal Call Report codes. The following portfolio classes have been identified as of March 31, 2019 and December 31, 2018:
|  |  |  |  |  | % of |  |  |  |  |  |  | % of |
|  | March 31, |  |  | Totals |  |  | December 31, |  |  | Total |
(Dollars in thousands) |  | 2019 |  |  | Loans |  |  | 2018 |  |  | Loans |
Primary residential mortgage |  | $ | 598,299 |  |  |  | 15.37 | % |  | $ | 600,891 |  |  |  | 15.31 | %
Home equity lines of credit |  |  | 57,636 |  |  |  | 1.48 |  |  |  | 62,191 |  |  |  | 1.58 |
Junior lien loan on residence |  |  | 7,429 |  |  |  | 0.19 |  |  |  | 7,418 |  |  |  | 0.19 |
Multifamily property |  |  | 1,104,406 |  |  |  | 28.36 |  |  |  | 1,135,805 |  |  |  | 28.94 |
Owner-occupied commercial real estate |  |  | 251,948 |  |  |  | 6.47 |  |  |  | 261,193 |  |  |  | 6.65 |
Investment commercial real estate |  |  | 1,005,724 |  |  |  | 25.83 |  |  |  | 1,001,918 |  |  |  | 25.53 |
Commercial and industrial |  |  | 633,590 |  |  |  | 16.27 |  |  |  | 616,838 |  |  |  | 15.72 |
Lease financing |  |  | 175,517 |  |  |  | 4.51 |  |  |  | 172,643 |  |  |  | 4.40 |
Farmland/agricultural production |  |  | 145 |  |  |  | — |  |  |  | 149 |  |  |  | 0.01 |
Commercial construction loans |  |  | 86 |  |  |  | — |  |  |  | 86 |  |  |  | 0.01 |
Consumer and other loans |  |  | 59,138 |  |  |  | 1.52 |  |  |  | 65,180 |  |  |  | 1.66 |
Total loans |  | $ | 3,893,918 |  |  |  | 100.00 | % |  | $ | 3,924,312 |  |  |  | 100.00 | %
Net deferred costs |  |  | 3,498 |  |  |  |  |  |  |  | 3,619 |  |  |  |  |
Total loans including net deferred costs |  | $ | 3,897,416 |  |  |  |  |  |  | $ | 3,927,931 |  |  |  |  |
The following tables present the loan balances by portfolio class, based on impairment method, and the corresponding balances in the allowance for loan and lease losses (ALLL) as of March 31, 2019 and December 31, 2018:
|  | March 31, 2019 |
|  | Total |  |  | Ending ALLL |  |  | Total |  |  | Ending ALLL |  |  |  |  |  |  |  |  |
|  | Loans |  |  | Attributable |  |  | Loans |  |  | Attributable |  |  |  |  |  |  |  |  |
|  | Individually |  |  | To Loans |  |  | Collectively |  |  | To Loans |  |  |  |  |  |  |  |  |
|  | Evaluated |  |  | Individually |  |  | Evaluated |  |  | Collectively |  |  |  |  |  |  | Total |
|  | For |  |  | Evaluated for |  |  | For |  |  | Evaluated for |  |  | Total |  |  | Ending |
(In thousands) |  | Impairment |  |  | Impairment |  |  | Impairment |  |  | Impairment |  |  | Loans |  |  | ALLL |
Primary residential mortgage |  | $ | 9,131 |  |  | $ | 258 |  |  | $ | 589,168 |  |  | $ | 3,219 |  |  | $ | 598,299 |  |  | $ | 3,477 |
Home equity lines of credit |  |  | 214 |  |  |  | — |  |  |  | 57,422 |  |  |  | 152 |  |  |  | 57,636 |  |  |  | 152 |
Junior lien loan on residence |  |  | 33 |  |  |  | — |  |  |  | 7,396 |  |  |  | 15 |  |  |  | 7,429 |  |  |  | 15 |
Multifamily property |  |  | — |  |  |  | — |  |  |  | 1,104,406 |  |  |  | 5,768 |  |  |  | 1,104,406 |  |  |  | 5,768 |
Owner-occupied commercial real estate |  |  | 1,514 |  |  |  | — |  |  |  | 250,434 |  |  |  | 2,534 |  |  |  | 251,948 |  |  |  | 2,534 |
Investment commercial real estate |  |  | 18,293 |  |  |  | — |  |  |  | 987,431 |  |  |  | 14,410 |  |  |  | 1,005,724 |  |  |  | 14,410 |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | 633,590 |  |  |  | 10,185 |  |  |  | 633,590 |  |  |  | 10,185 |
Lease financing |  |  | — |  |  |  | — |  |  |  | 175,517 |  |  |  | 1,803 |  |  |  | 175,517 |  |  |  | 1,803 |
Farmland/agricultural production |  |  | — |  |  |  | — |  |  |  | 145 |  |  |  | 2 |  |  |  | 145 |  |  |  | 2 |
Commercial construction loans |  |  | — |  |  |  | — |  |  |  | 86 |  |  |  | 1 |  |  |  | 86 |  |  |  | 1 |
Consumer and other loans |  |  | — |  |  |  | — |  |  |  | 59,138 |  |  |  | 306 |  |  |  | 59,138 |  |  |  | 306 |
Total ALLL |  | $ | 29,185 |  |  | $ | 258 |  |  | $ | 3,864,733 |  |  | $ | 38,395 |  |  | $ | 3,893,918 |  |  | $ | 38,653 |
|  | December 31, 2018 |
|  | Total |  |  | Ending ALLL |  |  | Total |  |  | Ending ALLL |  |  |  |  |  |  |  |  |
|  | Loans |  |  | Attributable |  |  | Loans |  |  | Attributable |  |  |  |  |  |  |  |  |
|  | Individually |  |  | To Loans |  |  | Collectively |  |  | To Loans |  |  |  |  |  |  |  |  |
|  | Evaluated |  |  | Individually |  |  | Evaluated |  |  | Collectively |  |  |  |  |  |  | Total |
|  | For |  |  | Evaluated for |  |  | For |  |  | Evaluated for |  |  | Total |  |  | Ending |
(In thousands) |  | Impairment |  |  | Impairment |  |  | Impairment |  |  | Impairment |  |  | Loans |  |  | ALLL |
Primary residential mortgage |  | $ | 9,518 |  |  | $ | 262 |  |  | $ | 591,373 |  |  | $ | 3,244 |  |  | $ | 600,891 |  |  | $ | 3,506 |
Home equity lines of credit |  |  | 255 |  |  |  | — |  |  |  | 61,936 |  |  |  | 164 |  |  |  | 62,191 |  |  |  | 164 |
Junior lien loan on residence |  |  | 36 |  |  |  | — |  |  |  | 7,382 |  |  |  | 15 |  |  |  | 7,418 |  |  |  | 15 |
Multifamily property |  |  | 1,262 |  |  |  | — |  |  |  | 1,134,543 |  |  |  | 5,959 |  |  |  | 1,135,805 |  |  |  | 5,959 |
Owner-occupied commercial real estate |  |  | 1,574 |  |  |  | — |  |  |  | 259,619 |  |  |  | 2,614 |  |  |  | 261,193 |  |  |  | 2,614 |
Investment commercial real estate |  |  | 18,655 |  |  |  | — |  |  |  | 983,263 |  |  |  | 14,248 |  |  |  | 1,001,918 |  |  |  | 14,248 |
Commercial and industrial |  |  | — |  |  |  | — |  |  |  | 616,838 |  |  |  | 9,839 |  |  |  | 616,838 |  |  |  | 9,839 |
Lease financing |  |  | — |  |  |  | — |  |  |  | 172,643 |  |  |  | 1,772 |  |  |  | 172,643 |  |  |  | 1,772 |
Farmland/agricultural production |  |  | — |  |  |  | — |  |  |  | 149 |  |  |  | 2 |  |  |  | 149 |  |  |  | 2 |
Commercial construction loans |  |  | — |  |  |  | — |  |  |  | 86 |  |  |  | 1 |  |  |  | 86 |  |  |  | 1 |
Consumer and other loans |  |  | — |  |  |  | — |  |  |  | 65,180 |  |  |  | 384 |  |  |  | 65,180 |  |  |  | 384 |
Total ALLL |  | $ | 31,300 |  |  | $ | 262 |  |  | $ | 3,893,012 |  |  | $ | 38,242 |  |  | $ | 3,924,312 |  |  | $ | 38,504 |
Impaired loans include nonaccrual loans of $24.9 million at March 31, 2019 and $25.7 million at December 31, 2018. Impaired loans also include performing TDR loans of $4.3 million at both March 31, 2019 and December 31, 2018. At March 31, 2019, the allowance allocated to TDR loans totaled $258 thousand, of which $159 thousand was allocated to nonaccrual loans. At December 31, 2018, the allowance allocated to TDR loans totaled $262 thousand of which $161 thousand was allocated to nonaccrual loans. All accruing TDR loans were paying in accordance with restructured terms as of March 31, 2019. The Company has not committed to lend additional amounts as of March 31, 2019 to customers with outstanding loans that are classified as TDR loans. The following tables present loans individually evaluated for impairment by class of loans as of March 31, 2019 and December 31, 2018 (The average impaired loans on the following tables represent year to date impaired loans.):
|  | March 31, 2019 |
|  | Unpaid |  |  |  |  |  |  |  |  |  |  | Average |
|  | Principal |  |  | Recorded |  |  | Specific |  |  | Impaired |
(In thousands) |  | Balance |  |  | Investment |  |  | Reserves |  |  | Loans |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Primary residential mortgage |  | $ | 9,314 |  |  | $ | 8,126 |  |  | $ | — |  |  | $ | 8,304 |
Owner-occupied commercial real estate |  |  | 2,714 |  |  |  | 1,514 |  |  |  | — |  |  |  | 1,535 |
Investment commercial real estate |  |  | 20,041 |  |  |  | 18,293 |  |  |  | — |  |  |  | 18,434 |
Home equity lines of credit |  |  | 216 |  |  |  | 214 |  |  |  | — |  |  |  | 214 |
Junior lien loan on residence |  |  | 100 |  |  |  | 33 |  |  |  | — |  |  |  | 34 |
Total loans with no related allowance |  | $ | 32,385 |  |  | $ | 28,180 |  |  | $ | — |  |  | $ | 28,521 |
With related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Primary residential mortgage |  | $ | 1,005 |  |  | $ | 1,005 |  |  | $ | 258 |  |  | $ | 1,052 |
Total loans with related allowance |  | $ | 1,005 |  |  | $ | 1,005 |  |  | $ | 258 |  |  | $ | 1,052 |
Total loans individually evaluated for Impairment |  | $ | 33,390 |  |  | $ | 29,185 |  |  | $ | 258 |  |  | $ | 29,573 |
|  | December 31, 2018 |
|  | Unpaid |  |  |  |  |  |  |  |  |  |  | Average |
|  | Principal |  |  | Recorded |  |  | Specific |  |  | Impaired |
(In thousands) |  | Balance |  |  | Investment |  |  | Reserves |  |  | Loans |
With no related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Primary residential mortgage |  | $ | 9,789 |  |  | $ | 8,502 |  |  | $ | — |  |  | $ | 8,042 |
Owner-occupied commercial real estate |  |  | 2,741 |  |  |  | 1,574 |  |  |  | — |  |  |  | 2,025 |
Investment commercial real estate |  |  | 20,179 |  |  |  | 18,655 |  |  |  | — |  |  |  | 13,999 |
Home equity lines of credit |  |  | 257 |  |  |  | 255 |  |  |  | — |  |  |  | 123 |
Junior lien loan on residence |  |  | 102 |  |  |  | 36 |  |  |  | — |  |  |  | 45 |
Multifamily property |  |  | 1,262 |  |  |  | 1,262 |  |  |  | — |  |  |  | 105 |
Total loans with no related allowance |  | $ | 34,330 |  |  | $ | 30,284 |  |  | $ | — |  |  | $ | 24,339 |
With related allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Primary residential mortgage |  | $ | 1,016 |  |  | $ | 1,016 |  |  | $ | 262 |  |  | $ | 1,144 |
Total loans with related allowance |  | $ | 1,016 |  |  | $ | 1,016 |  |  | $ | 262 |  |  | $ | 1,144 |
Total loans individually evaluated for impairment |  | $ | 35,346 |  |  | $ | 31,300 |  |  | $ | 262 |  |  | $ | 25,483 |
Interest income recognized on impaired loans for the quarters ended March 31, 2019 and 2018 was not material. The Company did not recognize any income on nonaccruing impaired loans for the three months ended March 31, 2019 and 2018. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2019 and December 31, 2018:
|  | March 31, 2019 |
|  |  |  |  |  | Loans Past Due |
|  |  |  |  |  | Over 90 Days |
|  |  |  |  |  | And Still |
(In thousands) |  | Nonaccrual |  |  | Accruing Interest |
Primary residential mortgage |  | $ | 4,857 |  |  | $ | — |
Home equity lines of credit |  |  | 195 |  |  |  | — |
Junior lien loan on residence |  |  | 33 |  |  |  | — |
Owner-occupied commercial real estate |  |  | 1,514 |  |  |  | — |
Investment commercial real estate |  |  | 18,293 |  |  |  | — |
Total |  | $ | 24,892 |  |  | $ | — |
|  | December 31, 2018 |
|  |  |  |  |  | Loans Past Due |
|  |  |  |  |  | Over 90 Days |
|  |  |  |  |  | And Still |
(In thousands) |  | Nonaccrual |  |  | Accruing Interest |
Primary residential mortgage |  | $ | 5,215 |  |  | $ | — |
Home equity lines of credit |  |  | 235 |  |  |  | — |
Junior lien loan on residence |  |  | 36 |  |  |  | — |
Owner-occupied commercial real estate |  |  | 1,574 |  |  |  | — |
Investment commercial real estate |  |  | 18,655 |  |  |  | — |
Total |  | $ | 25,715 |  |  | $ | — |
The following tables present the aging of the recorded investment in past due loans as of March 31, 2019 and December 31, 2018 by class of loans, excluding nonaccrual loans:
|  | March 31, 2019 |
|  | 30-59 |  |  | 60-89 |  |  | Greater Than |  |  |  |  |
|  | Days |  |  | Days |  |  | 90 Days |  |  | Total |
(In thousands) |  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Past Due |
Primary residential mortgage |  | $ | 656 |  |  | $ | 205 |  |  | $ | — |  |  | $ | 861 |
Multifamily property |  |  | 1,191 |  |  |  | — |  |  |  | — |  |  |  | 1,191 |
Owner-occupied commercial real estate |  |  | 354 |  |  |  | — |  |  |  | — |  |  |  | 354 |
Commercial construction loans |  |  | 86 |  |  |  | — |  |  |  | — |  |  |  | 86 |
Total |  | $ | 2,287 |  |  | $ | 205 |  |  | $ | — |  |  | $ | 2,492 |
|  | December 31, 2018 |
|  | 30-59 |  |  | 60-89 |  |  | Greater Than |  |  |  |  |
|  | Days |  |  | Days |  |  | 90 Days |  |  | Total |
(In thousands) |  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Past Due |
Primary residential mortgage |  | $ | 606 |  |  | $ | 491 |  |  | $ | — |  |  | $ | 1,097 |
Consumer and other loans |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | 2 |
Total |  | $ | 608 |  |  | $ | 491 |  |  | $ | — |  |  | $ | 1,099 |
Credit Quality Indicators: The Company places all commercial loans into various credit risk rating categories based on an assessment of the expected ability of the borrowers to properly service their debt. The assessment considers numerous factors including, but not limited to, current financial information on the borrower, historical payment experience, strength of any guarantor, nature of and value of any collateral, acceptability of the loan structure and documentation, relevant public information and current economic trends. This credit risk rating analysis is performed when the loan is initially underwritten and then annually based on set criteria in the loan policy. In addition, the Bank has engaged an independent loan review firm to validate risk ratings and to ensure compliance with our policies and procedures. This review of the following types of loans is performed quarterly:
| • | A majority of relationships or new lending to existing relationships greater than $1,000,000;
| • | All criticized and classified rated borrowers with relationship exposure of more than $500,000;
| • | A random sample of borrowers with relationships less than $1,000,000;
| • | All leveraged loans;
| • | At least two borrowing relationships managed by each commercial banker;
| • | Any new Regulation “O” loan commitments over $1,000,000;
| • | Any other credits requested by Bank senior management or a member of the Board of Directors and any borrower for which the reviewer determines a review is warranted based upon knowledge of the portfolio, local events, industry stresses, etc.
The Company uses the following regulatory definitions for criticized and classified risk ratings: Special Mention: These loans have a potential weakness that deserves Management’s close attention. If left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date. Substandard: These loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: These loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable, based on currently existing facts, conditions and values. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. Loans that are considered to be impaired are individually evaluated for potential loss and allowance adequacy. Loans not deemed impaired are collectively evaluated for potential loss and allowance adequacy. As of March 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
|  |  |  |  |  | Special |  |  |  |  |  |  |  |  |
(In thousands) |  | Pass |  |  | Mention |  |  | Substandard |  |  | Doubtful |
Primary residential mortgage |  | $ | 588,077 |  |  | $ | 1,033 |  |  | $ | 9,189 |  |  | $ | — |
Home equity lines of credit |  |  | 57,422 |  |  |  | — |  |  |  | 214 |  |  |  | — |
Junior lien loan on residence |  |  | 7,396 |  |  |  | — |  |  |  | 33 |  |  |  | — |
Multifamily property |  |  | 1,102,458 |  |  |  | 1,599 |  |  |  | 349 |  |  |  | — |
Owner-occupied commercial real estate |  |  | 245,404 |  |  |  | 1,257 |  |  |  | 5,287 |  |  |  | — |
Investment commercial real estate |  |  | 956,874 |  |  |  | 20,603 |  |  |  | 28,247 |  |  |  | — |
Commercial and industrial |  |  | 617,523 |  |  |  | 8,311 |  |  |  | 7,756 |  |  |  | — |
Lease financing |  |  | 175,517 |  |  |  | — |  |  |  | — |  |  |  | — |
Farmland/agricultural production |  |  | 145 |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial construction loans |  |  | — |  |  |  | 86 |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  | 58,907 |  |  |  | — |  |  |  | 231 |  |  |  | — |
Total |  | $ | 3,809,723 |  |  | $ | 32,889 |  |  | $ | 51,306 |  |  | $ | — |
As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
|  |  |  |  |  | Special |  |  |  |  |  |  |  |  |
(In thousands) |  | Pass |  |  | Mention |  |  | Substandard |  |  | Doubtful |
Primary residential mortgage |  | $ | 590,372 |  |  | $ | 943 |  |  | $ | 9,576 |  |  | $ | — |
Home equity lines of credit |  |  | 61,936 |  |  |  | — |  |  |  | 255 |  |  |  | — |
Junior lien loan on residence |  |  | 7,382 |  |  |  | — |  |  |  | 36 |  |  |  | — |
Multifamily property |  |  | 1,130,926 |  |  |  | 3,263 |  |  |  | 1,616 |  |  |  | — |
Owner-occupied commercial real estate |  |  | 255,417 |  |  |  | 249 |  |  |  | 5,527 |  |  |  | — |
Investment commercial real estate |  |  | 948,300 |  |  |  | 20,756 |  |  |  | 32,862 |  |  |  | — |
Commercial and industrial |  |  | 608,262 |  |  |  | 417 |  |  |  | 8,159 |  |  |  | — |
Lease financing |  |  | 172,643 |  |  |  | — |  |  |  | — |  |  |  | — |
Farmland/agricultural production |  |  | 149 |  |  |  | — |  |  |  | — |  |  |  | — |
Commercial construction loans |  |  | — |  |  |  | 86 |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  | 64,946 |  |  |  | — |  |  |  | 234 |  |  |  | — |
Total |  | $ | 3,840,333 |  |  | $ | 25,714 |  |  | $ | 58,265 |  |  | $ | — |
At March 31, 2019, $29.1 million of substandard loans were also considered impaired, compared to December 31, 2018, when $31.2 million of substandard loans were also impaired. The activity in the allowance for loan and lease losses for the three months ended March 31, 2019 is summarized below:
|  | January 1, |  |  |  |  |  |  |  |  |  |  |  |  |  |  | March 31, |
|  | 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2019 |
|  | Beginning |  |  |  |  |  |  |  |  |  |  | Provision |  |  | Ending |
(In thousands) |  | ALLL |  |  | Charge-offs |  |  | Recoveries |  |  | (Credit) |  |  | ALLL |
Primary residential mortgage |  | $ | 3,506 |  |  | $ | — |  |  | $ | 42 |  |  | $ | (71 | ) |  | $ | 3,477 |
Home equity lines of credit |  |  | 164 |  |  |  | — |  |  |  | 2 |  |  |  | (14 | ) |  |  | 152 |
Junior lien loan on residence |  |  | 15 |  |  |  | — |  |  |  | 11 |  |  |  | (11 | ) |  |  | 15 |
Multifamily property |  |  | 5,959 |  |  |  | — |  |  |  | — |  |  |  | (191 | ) |  |  | 5,768 |
Owner-occupied commercial real estate |  |  | 2,614 |  |  |  | — |  |  |  | — |  |  |  | (80 | ) |  |  | 2,534 |
Investment commercial real estate |  |  | 14,248 |  |  |  | — |  |  |  | — |  |  |  | 162 |  |  |  | 14,410 |
Commercial and industrial |  |  | 9,839 |  |  |  | — |  |  |  | 4 |  |  |  | 342 |  |  |  | 10,185 |
Lease financing |  |  | 1,772 |  |  |  | — |  |  |  | — |  |  |  | 31 |  |  |  | 1,803 |
Farmland/agricultural production |  |  | 2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |
Commercial construction loans |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Consumer and other loans |  |  | 384 |  |  |  | (11 | ) |  |  | 1 |  |  |  | (68 | ) |  |  | 306 |
Total ALLL |  | $ | 38,504 |  |  | $ | (11 | ) |  | $ | 60 |  |  | $ | 100 |  |  | $ | 38,653 |
The activity in the allowance for loan and lease losses for the three months ended March 31, 2018 is summarized below:
|  | January 1, |  |  |  |  |  |  |  |  |  |  |  |  |  |  | March 31, |
|  | 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2018 |
|  | Beginning |  |  |  |  |  |  |  |  |  |  | Provision |  |  | Ending |
(In thousands) |  | ALLL |  |  | Charge-offs |  |  | Recoveries |  |  | (Credit) |  |  | ALLL |
Primary residential mortgage |  | $ | 4,085 |  |  | $ | (77 | ) |  | $ | — |  |  | $ | 395 |  |  | $ | 4,403 |
Home equity lines of credit |  |  | 221 |  |  |  | — |  |  |  | 2 |  |  |  | (31 | ) |  |  | 192 |
Junior lien loan on residence |  |  | 12 |  |  |  | — |  |  |  | 9 |  |  |  | (5 | ) |  |  | 16 |
Multifamily property |  |  | 10,007 |  |  |  | — |  |  |  | — |  |  |  | (867 | ) |  |  | 9,140 |
Owner-occupied commercial real estate |  |  | 2,385 |  |  |  | — |  |  |  | 66 |  |  |  | (87 | ) |  |  | 2,364 |
Investment commercial real estate |  |  | 11,933 |  |  |  | — |  |  |  | — |  |  |  | 434 |  |  |  | 12,367 |
Commercial and industrial |  |  | 6,563 |  |  |  | — |  |  |  | 16 |  |  |  | 1,174 |  |  |  | 7,753 |
Lease financing |  |  | 884 |  |  |  | — |  |  |  | — |  |  |  | 152 |  |  |  | 1,036 |
Farmland/agricultural production |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | 2 |
Commercial construction loans |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |
Consumer and other loans |  |  | 349 |  |  |  | (11 | ) |  |  | 1 |  |  |  | 83 |  |  |  | 422 |
Total ALLL |  | $ | 36,440 |  |  | $ | (88 | ) |  | $ | 94 |  |  | $ | 1,250 |  |  | $ | 37,696 |
Troubled Debt Restructurings: The Company has allocated $258 thousand and $262 thousand of specific reserves on TDRs to customers whose loan terms have been modified in TDRs as of March 31, 2019 and December 31, 2018, respectively. There were no unfunded commitments to lend additional amounts to customers with outstanding loans that are classified as TDRs. The terms of certain loans were modified as TDRs when one or a combination of the following occurred: a reduction of the stated interest rate of the loan; the maturity date was extended; or some other modification or extension occurred which would not be readily available in the market. There were no loans modified as TDRs during the three-month periods ended March 31, 2019 and March 31, 2018. The identification of the TDRs did not have a significant impact on the allowance for loan and lease losses. The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default as March 31, 2019:
|  | Number of |  |  | Recorded |
(Dollars in thousands) |  | Contracts |  |  | Investment |
Investment commercial real estate |  |  | 1 |  |  | $ | 14,841 |
Total |  |  | 1 |  |  | $ | 14,841 |
The following table presents loans by class modified as TDRs that failed to comply with the modified terms in the twelve months following modification and resulted in a payment default at March 31, 2018:
|  | Number of |  |  | Recorded |
(Dollars in thousands) |  | Contracts |  |  | Investment |
Primary residential mortgage |  |  | 1 |  |  | $ | 336 |
Total |  |  | 1 |  |  | $ | 336 |
In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. The modification of the terms of such loans may include one or more of the following: (1) a reduction of the stated interest rate of the loan to a rate that is lower than the current market rate for new debt with similar risk; (2) an extension of an interest only period for a predetermined period of time; (3) an extension of the maturity date; or (4) an extension of the amortization period over which future payments will be computed. At the time a loan is restructured, the Bank performs a full re-underwriting analysis, which includes, at a minimum, obtaining current financial statements and tax returns, copies of all leases, and an updated independent appraisal of the property. A loan will continue to accrue interest if it can be reasonably determined that the borrower should be able to perform under the modified terms, that the loan has not been chronically delinquent (both to debt service and real estate taxes) or in nonaccrual status since its inception, and that there have been no charge-offs on the loan. Restructured loans with previous charge-offs would not accrue interest at the time of the TDR. At a minimum, six consecutive months of contractual payments would need to be made on a restructured loan before returning it to accrual status. Once a loan is classified as a TDR, the loan is reported as a TDR until the loan is paid in full, sold or charged-off. In rare circumstances, a loan may be removed from TDR status if it meets the requirements of ASC 310-40-50-2.

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5074-111524 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03(a)(5)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5162-111524 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84173941&loc=d3e5066-111524 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03(7)) -URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-04(6)) -URI http://asc.fasb.org/extlink&oid=6488278&loc=d3e603758-122996 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration