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Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses (Tables) | 6 Months Ended
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Jun. 30, 2022
Receivables [Abstract] |
Loan Composition Schedule | Loan and lease receivables consist of the following:
|  | June 30, 2022 |  | December 31, 2021
|  | (In Thousands)
Commercial real estate: |  |  |  |
Commercial real estate — owner occupied |  | $ | 258,375 |  |  | $ | 235,589 |
Commercial real estate — non-owner occupied |  | 651,920 |  |  | 661,423 |
Land development |  | 42,545 |  |  | 42,792 |
Construction |  | 203,913 |  |  | 179,841 |
Multi-family |  | 314,392 |  |  | 320,072 |
1-4 family |  | 17,335 |  |  | 14,911 |
Total commercial real estate |  | 1,488,480 |  |  | 1,454,628 |
Commercial and industrial |  | 741,363 |  |  | 730,819 |
Direct financing leases, net |  | 13,718 |  |  | 15,743 |
Consumer and other: |  |  |  |
Home equity and second mortgages |  | 5,132 |  |  | 4,223 |
Other |  | 42,387 |  |  | 35,518 |
Total consumer and other |  | 47,519 |  |  | 39,741 |
Total gross loans and leases receivable |  | 2,291,080 |  |  | 2,240,931 |
Less: |  |  |  |
Allowance for loan and lease losses |  | 24,104 |  |  | 24,336 |
Deferred loan fees |  | 980 |  |  | 1,523 |
Loans and leases receivable, net |  | $ | 2,265,996 |  |  | $ | 2,215,072 |
Ownership of SBA Loans | The total amount of the Corporation’s ownership of SBA loans on-balance sheet is comprised of the following:
|  | June 30, 2022 |  | December 31, 2021
|  | (In Thousands)
SBA 7(a) loans |  | $ | 32,927 |  |  | $ | 33,223 |
SBA 504 loans |  | 38,569 |  |  | 41,394 |
SBA Express loans and lines of credit |  | 233 |  |  | 387 |
SBA PPP loans |  | 8,285 |  |  | 27,854 |
Total SBA loans |  | $ | 80,014 |  |  | $ | 102,858 |
Financing Receivable by Credit Quality Indicators | 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, 2022
|  | Category |  |
|  | I |  | II |  | III |  | IV |  | Total
|  | (Dollars in Thousands)
Commercial real estate: |  |  |  |  |  |  |  |  |  |
Commercial real estate — owner occupied |  | $ | 203,127 |  |  | $ | 36,688 |  |  | $ | 18,447 |  |  | $ | 113 |  |  | $ | 258,375 |
Commercial real estate — non-owner occupied |  | 540,971 |  |  | 92,025 |  |  | 18,924 |  |  | — |  |  | 651,920 |
Land development |  | 42,221 |  |  | 324 |  |  | — |  |  | — |  |  | 42,545 |
Construction |  | 162,066 |  |  | 17,475 |  |  | 24,372 |  |  | — |  |  | 203,913 |
Multi-family |  | 280,188 |  |  | 23,018 |  |  | 11,186 |  |  | — |  |  | 314,392 |
1-4 family |  | 13,470 |  |  | 3,832 |  |  | — |  |  | 33 |  |  | 17,335 |
Total commercial real estate |  | 1,242,043 |  |  | 173,362 |  |  | 72,929 |  |  | 146 |  |  | 1,488,480 |
Commercial and industrial |  | 576,320 |  |  | 119,543 |  |  | 39,922 |  |  | 5,578 |  |  | 741,363 |
Direct financing leases, net |  | 9,136 |  |  | 320 |  |  | 4,213 |  |  | 49 |  |  | 13,718 |
Consumer and other: |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | 3,047 |  |  | 1,822 |  |  | 263 |  |  | — |  |  | 5,132 |
Other |  | 42,153 |  |  | 234 |  |  | — |  |  | — |  |  | 42,387 |
Total consumer and other |  | 45,200 |  |  | 2,056 |  |  | 263 |  |  | — |  |  | 47,519 |
Total gross loans and leases receivable |  | $ | 1,872,699 |  |  | $ | 295,281 |  |  | $ | 117,327 |  |  | $ | 5,773 |  |  | $ | 2,291,080 |
Category as a % of total portfolio |  | 81.74 | % |  | 12.89 | % |  | 5.12 | % |  | 0.25 | % |  | 100.00 | %
|  | December 31, 2021
|  | Category |  |
|  | I |  | II |  | III |  | IV |  | Total
|  | (Dollars in Thousands)
Commercial real estate: |  |  |  |  |  |  |  |  |  |
Commercial real estate — owner occupied |  | $ | 192,849 |  |  | $ | 31,611 |  |  | $ | 10,781 |  |  | $ | 348 |  |  | $ | 235,589 |
Commercial real estate — non-owner occupied |  | 540,572 |  |  | 88,880 |  |  | 31,971 |  |  | — |  |  | 661,423 |
Land development |  | 41,745 |  |  | 1,047 |  |  | — |  |  | — |  |  | 42,792 |
Construction |  | 130,285 |  |  | 18,973 |  |  | 30,583 |  |  | — |  |  | 179,841 |
Multi-family |  | 280,183 |  |  | 28,623 |  |  | 11,266 |  |  | — |  |  | 320,072 |
1-4 family |  | 12,057 |  |  | 2,113 |  |  | 402 |  |  | 339 |  |  | 14,911 |
Total commercial real estate |  | 1,197,691 |  |  | 171,247 |  |  | 85,003 |  |  | 687 |  |  | 1,454,628 |
Commercial and industrial |  | 594,388 |  |  | 97,678 |  |  | 32,964 |  |  | 5,789 |  |  | 730,819 |
Direct financing leases, net |  | 10,829 |  |  | 168 |  |  | 4,647 |  |  | 99 |  |  | 15,743 |
Consumer and other: |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | 2,473 |  |  | 1,683 |  |  | 67 |  |  | — |  |  | 4,223 |
Other |  | 35,249 |  |  | 269 |  |  | — |  |  | — |  |  | 35,518 |
Total consumer and other |  | 37,722 |  |  | 1,952 |  |  | 67 |  |  | — |  |  | 39,741 |
Total gross loans and leases receivable |  | $ | 1,840,630 |  |  | $ | 271,045 |  |  | $ | 122,681 |  |  | $ | 6,575 |  |  | $ | 2,240,931 |
Category as a % of total portfolio |  | 82.14 | % |  | 12.10 | % |  | 5.47 | % |  | 0.29 | % |  | 100.00 | %
Past Due Financing Receivables | The delinquency aging of the loan and lease portfolio by class of receivable was as follows:
|  | June 30, 2022
|  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 90 Days Past Due |  | Total Past Due |  | Current |  | Total Loans and Leases
|  | (Dollars in Thousands)
Accruing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 258,262 |  |  | $ | 258,262 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 651,920 |  |  | 651,920 |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,545 |  |  | 42,545 |
Construction |  | 13,400 |  |  | — |  |  | — |  |  | 13,400 |  |  | 190,513 |  |  | 203,913 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 314,392 |  |  | 314,392 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,302 |  |  | 17,302 |
Commercial and industrial |  | 3,685 |  |  | 437 |  |  | — |  |  | 4,122 |  |  | 731,851 |  |  | 735,973 |
Direct financing leases, net |  | 2,827 |  |  | 59 |  |  | — |  |  | 2,886 |  |  | 10,783 |  |  | 13,669 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,132 |  |  | 5,132 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,387 |  |  | 42,387 |
Total |  | 19,912 |  |  | 496 |  |  | — |  |  | 20,408 |  |  | 2,265,087 |  |  | 2,285,495 |
Non-accruing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | 113 |  |  | 113 |  |  | — |  |  | 113 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 33 |  |  | 33 |
Commercial and industrial |  | 77 |  |  | 79 |  |  | 1,377 |  |  | 1,533 |  |  | 3,857 |  |  | 5,390 |
Direct financing leases, net |  | — |  |  | — |  |  | 49 |  |  | 49 |  |  | — |  |  | 49 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 77 |  |  | 79 |  |  | 1,539 |  |  | 1,695 |  |  | 3,890 |  |  | 5,585 |
Total loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | 113 |  |  | 113 |  |  | 258,262 |  |  | 258,375 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 651,920 |  |  | 651,920 |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,545 |  |  | 42,545 |
Construction |  | 13,400 |  |  | — |  |  | — |  |  | 13,400 |  |  | 190,513 |  |  | 203,913 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 314,392 |  |  | 314,392 |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 17,335 |  |  | 17,335 |
Commercial and industrial |  | 3,762 |  |  | 516 |  |  | 1,377 |  |  | 5,655 |  |  | 735,708 |  |  | 741,363 |
Direct financing leases, net |  | 2,827 |  |  | 59 |  |  | 49 |  |  | 2,935 |  |  | 10,783 |  |  | 13,718 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,132 |  |  | 5,132 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,387 |  |  | 42,387 |
Total |  | $ | 19,989 |  |  | $ | 575 |  |  | $ | 1,539 |  |  | $ | 22,103 |  |  | $ | 2,268,977 |  |  | $ | 2,291,080 |
Percent of portfolio |  | 0.87 | % |  | 0.03 | % |  | 0.07 | % |  | 0.97 | % |  | 99.03 | % |  | 100.00 | %
|  | December 31, 2021
|  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | Greater Than 90 Days Past Due |  | Total Past Due |  | Current |  | Total Loans and Leases
|  | (Dollars in Thousands)
Accruing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | $ | 420 |  |  | $ | — |  |  | $ | — |  |  | $ | 420 |  |  | $ | 234,821 |  |  | $ | 235,241 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 661,423 |  |  | 661,423 |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,792 |  |  | 42,792 |
Construction |  | 394 |  |  | — |  |  | — |  |  | 394 |  |  | 179,447 |  |  | 179,841 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 320,072 |  |  | 320,072 |
1-4 family |  | 100 |  |  | — |  |  | — |  |  | 100 |  |  | 14,472 |  |  | 14,572 |
Commercial and industrial |  | 907 |  |  | 536 |  |  | — |  |  | 1,443 |  |  | 723,804 |  |  | 725,247 |
Direct financing leases, net |  | 281 |  |  | 14 |  |  | — |  |  | 295 |  |  | 15,349 |  |  | 15,644 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,223 |  |  | 4,223 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,518 |  |  | 35,518 |
Total |  | 2,102 |  |  | 550 |  |  | — |  |  | 2,652 |  |  | 2,231,921 |  |  | 2,234,573 |
Non-accruing loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | 113 |  |  | 113 |  |  | 235 |  |  | 348 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | 339 |  |  | 339 |
Commercial and industrial |  | 23 |  |  | 36 |  |  | 1,445 |  |  | 1,504 |  |  | 4,068 |  |  | 5,572 |
Direct financing leases, net |  | — |  |  | — |  |  | 84 |  |  | 84 |  |  | 15 |  |  | 99 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 23 |  |  | 36 |  |  | 1,642 |  |  | 1,701 |  |  | 4,657 |  |  | 6,358 |
Total loans and leases |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | 420 |  |  | — |  |  | 113 |  |  | 533 |  |  | 235,056 |  |  | 235,589 |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | 661,423 |  |  | 661,423 |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | 42,792 |  |  | 42,792 |
Construction |  | 394 |  |  | — |  |  | — |  |  | 394 |  |  | 179,447 |  |  | 179,841 |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | 320,072 |  |  | 320,072 |
1-4 family |  | 100 |  |  | — |  |  | — |  |  | 100 |  |  | 14,811 |  |  | 14,911 |
Commercial and industrial |  | 930 |  |  | 572 |  |  | 1,445 |  |  | 2,947 |  |  | 727,872 |  |  | 730,819 |
Direct financing leases, net |  | 281 |  |  | 14 |  |  | 84 |  |  | 379 |  |  | 15,364 |  |  | 15,743 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,223 |  |  | 4,223 |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | 35,518 |  |  | 35,518 |
Total |  | $ | 2,125 |  |  | $ | 586 |  |  | $ | 1,642 |  |  | $ | 4,353 |  |  | $ | 2,236,578 |  |  | $ | 2,240,931 |
Percent of portfolio |  | 0.09 | % |  | 0.03 | % |  | 0.07 | % |  | 0.19 | % |  | 99.81 | % |  | 100.00 | %
Schedule of Financing Receivables, Non Accrual Status | The Corporation’s total impaired assets consisted of the following:
|  | June 30, 2022 |  | December 31, 2021
|  | (In Thousands)
Non-accrual loans and leases |  |  |  |
Commercial real estate: |  |  |  |
Commercial real estate — owner occupied |  | $ | 113 |  |  | $ | 348 |
Commercial real estate — non-owner occupied |  | — |  |  | — |
Land development |  | — |  |  | — |
Construction |  | — |  |  | — |
Multi-family |  | — |  |  | — |
1-4 family |  | 33 |  |  | 339 |
Total non-accrual commercial real estate |  | 146 |  |  | 687 |
Commercial and industrial |  | 5,390 |  |  | 5,572 |
Direct financing leases, net |  | 49 |  |  | 99 |
Consumer and other: |  |  |  |
Home equity and second mortgages |  | — |  |  | — |
Other |  | — |  |  | — |
Total non-accrual consumer and other loans |  | — |  |  | — |
Total non-accrual loans and leases |  | 5,585 |  |  | 6,358 |
Foreclosed properties, net |  | 124 |  |  | 164 |
Total non-performing assets |  | 5,709 |  |  | 6,522 |
Performing troubled debt restructurings |  | 188 |  |  | 217 |
Total impaired assets |  | $ | 5,897 |  |  | $ | 6,739 |
|  | June 30, 2022 |  | December 31, 2021
Total non-accrual loans and leases to gross loans and leases |  | 0.24 | % |  | 0.28 | %
Total non-performing assets to total gross loans and leases plus foreclosed properties, net |  | 0.25 |  |  | 0.29 |
Total non-performing assets to total assets |  | 0.21 |  |  | 0.25 |
Allowance for loan and lease losses to gross loans and leases |  | 1.05 |  |  | 1.09 |
Allowance for loan and lease losses to non-accrual loans and leases |  | 431.58 |  |  | 382.76 |
Troubled Debt Restructurings on Financing Receivables | The following table provides the number of loans modified as a TDR and the pre- and post-modification recorded investment by class of receivable for the three and six months ended June 30, 2021:
|  | For the Three Months Ended June 30, |  | For the Six Months Ended June 30,
|  | 2021 |  | 2021
|  | Number of Loans |  | Pre-Modification Recorded Investment |  | Post-Modification Recorded Investment |  | Number of Loans |  | Pre-Modification Recorded Investment |  | Post-Modification Recorded Investment
|  | (Dollars in Thousands)
Commercial and industrial |  | — |  | — |  |  | — |  |  | 1 |  | $ | 56 |  |  | $ | 43 |
Impaired Financing Receivables | The following represents additional information regarding the Corporation’s impaired loans and leases, including performing TDRs, by class:
|  | As of and for the Six Months Ended June 30, 2022
|  | 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 |  | $ | 113 |  |  | $ | 151 |  |  | $ | — |  |  | $ | 343 |  |  | $ | 13 |  |  | $ | 735 |  |  | $ | (722) |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (1) |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 33 |  |  | 38 |  |  | — |  |  | 193 |  |  | 6 |  |  | 29 |  |  | (23) |
Commercial and industrial |  | 3,998 |  |  | 4,099 |  |  | — |  |  | 4,256 |  |  | 135 |  |  | 45 |  |  | 90 |
Direct financing leases, net |  | — |  |  | — |  |  | — |  |  | 26 |  |  | — |  |  | 2 |  |  | (2) |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 4,144 |  |  | 4,288 |  |  | — |  |  | 4,818 |  |  | 154 |  |  | 812 |  |  | (658) |
With impairment reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 1,580 |  |  | 1,580 |  |  | 1,205 |  |  | 1,142 |  |  | 51 |  |  | 1 |  |  | 50 |
Direct financing leases, net |  | 49 |  |  | 49 |  |  | 49 |  |  | 49 |  |  | 1 |  |  | — |  |  | 1 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 1,629 |  |  | 1,629 |  |  | 1,254 |  |  | 1,191 |  |  | 52 |  |  | 1 |  |  | 51 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | 113 |  |  | 151 |  |  | — |  |  | 343 |  |  | 13 |  |  | 735 |  |  | (722) |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (1) |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 33 |  |  | 38 |  |  | — |  |  | 193 |  |  | 6 |  |  | 29 |  |  | (23) |
Commercial and industrial |  | 5,578 |  |  | 5,679 |  |  | 1,205 |  |  | 5,398 |  |  | 186 |  |  | 46 |  |  | 140 |
Direct financing leases, net |  | 49 |  |  | 49 |  |  | 49 |  |  | 75 |  |  | 1 |  |  | 2 |  |  | (1) |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Grand total |  | $ | 5,773 |  |  | $ | 5,917 |  |  | $ | 1,254 |  |  | $ | 6,009 |  |  | $ | 206 |  |  | $ | 813 |  |  | $ | (607) |
(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, 2021
|  | 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 |  | $ | 348 |  |  | $ | 386 |  |  | $ | — |  |  | $ | 2,217 |  |  | $ | 145 |  |  | $ | 218 |  |  | $ | (73) |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | 2,281 |  |  | 233 |  |  | 16 |  |  | 217 |
Land development |  | — |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 339 |  |  | 344 |  |  | — |  |  | 285 |  |  | 60 |  |  | 24 |  |  | 36 |
Commercial and industrial |  | 3,717 |  |  | 3,819 |  |  | — |  |  | 7,914 |  |  | 522 |  |  | 179 |  |  | 343 |
Direct financing leases, net |  | 15 |  |  | 15 |  |  | — |  |  | 2 |  |  | 1 |  |  | — |  |  | 1 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | 40 |  |  | 7 |  |  | 9 |  |  | (2) |
Other |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 23 |  |  | — |  |  | 23 |
Total |  | 4,419 |  |  | 4,564 |  |  | — |  |  | 12,754 |  |  | 991 |  |  | 446 |  |  | 545 |
With impairment reserve recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Land development |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial and industrial |  | 2,072 |  |  | 2,072 |  |  | 1,439 |  |  | 1,456 |  |  | 109 |  |  | 8 |  |  | 101 |
Direct financing leases, net |  | 84 |  |  | 84 |  |  | 66 |  |  | 50 |  |  | 4 |  |  | — |  |  | 4 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | 2,156 |  |  | 2,156 |  |  | 1,505 |  |  | 1,506 |  |  | 113 |  |  | 8 |  |  | 105 |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Owner occupied |  | 348 |  |  | 386 |  |  | — |  |  | 2,217 |  |  | 145 |  |  | 218 |  |  | (73) |
Non-owner occupied |  | — |  |  | — |  |  | — |  |  | 2,281 |  |  | 233 |  |  | 16 |  |  | 217 |
Land development |  | — |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | — |
Construction |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Multi-family |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
1-4 family |  | 339 |  |  | 344 |  |  | — |  |  | 285 |  |  | 60 |  |  | 24 |  |  | 36 |
Commercial and industrial |  | 5,789 |  |  | 5,891 |  |  | 1,439 |  |  | 9,370 |  |  | 631 |  |  | 187 |  |  | 444 |
Direct financing leases, net |  | 99 |  |  | 99 |  |  | 66 |  |  | 52 |  |  | 5 |  |  | — |  |  | 5 |
Consumer and other: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity and second mortgages |  | — |  |  | — |  |  | — |  |  | 40 |  |  | 7 |  |  | 9 |  |  | (2) |
Other |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 23 |  |  | — |  |  | 23 |
Grand total |  | $ | 6,575 |  |  | $ | 6,720 |  |  | $ | 1,505 |  |  | $ | 14,260 |  |  | $ | 1,104 |  |  | $ | 454 |  |  | $ | 650 |
(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.
Allowance for Loan and Lease Losses by Portfolio Segment | 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, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 13,765 |  |  | $ | 8,912 |  |  | $ | 992 |  |  | $ | 23,669 |
Charge-offs |  | — |  |  | (85) |  |  | — |  |  | (85) |
Recoveries |  | 4,121 |  |  | 117 |  |  | 9 |  |  | 4,247 |
Net recoveries (charge-offs) |  | 4,121 |  |  | 32 |  |  | 9 |  |  | 4,162 |
Provision for loan and lease losses |  | (4,476) |  |  | 922 |  |  | (173) |  |  | (3,727) |
Ending balance |  | $ | 13,410 |  |  | $ | 9,866 |  |  | $ | 828 |  |  | $ | 24,104 |
|  | As of and for the Three Months Ended June 30, 2021
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 18,445 |  |  | $ | 9,544 |  |  | $ | 993 |  |  | $ | 28,982 |
Charge-offs |  | (249) |  |  | (2,621) |  |  | (24) |  |  | (2,894) |
Recoveries |  | 84 |  |  | 460 |  |  | 1 |  |  | 545 |
Net (charge-offs) recoveries |  | (165) |  |  | (2,161) |  |  | (23) |  |  | (2,349) |
Provision for loan and lease losses |  | (1,404) |  |  | 498 |  |  | (52) |  |  | (958) |
Ending balance |  | $ | 16,876 |  |  | $ | 7,881 |  |  | $ | 918 |  |  | $ | 25,675 |
|  | As of and for the Six Months Ended June 30, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 15,110 |  |  | $ | 8,413 |  |  | $ | 813 |  |  | $ | 24,336 |
Charge-offs |  | — |  |  | (107) |  |  | — |  |  | (107) |
Recoveries |  | 4,237 |  |  | 201 |  |  | 19 |  |  | 4,457 |
Net recoveries (charge-offs) |  | 4,237 |  |  | 94 |  |  | 19 |  |  | 4,350 |
Provision for loan and lease losses |  | (5,937) |  |  | 1,359 |  |  | (4) |  |  | (4,582) |
Ending balance |  | $ | 13,410 |  |  | $ | 9,866 |  |  | $ | 828 |  |  | $ | 24,104 |
|  | As of and for the Six Months Ended June 30, 2021
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Beginning balance |  | $ | 17,157 |  |  | $ | 10,593 |  |  | $ | 771 |  |  | $ | 28,521 |
Charge-offs |  | (249) |  |  | (2,765) |  |  | (24) |  |  | (3,038) |
Recoveries |  | 2,303 |  |  | 913 |  |  | 2 |  |  | 3,218 |
Net (charge-offs) recoveries |  | 2,054 |  |  | (1,852) |  |  | (22) |  |  | 180 |
Provision for loan and lease losses |  | (2,335) |  |  | (860) |  |  | 169 |  |  | (3,026) |
Ending balance |  | $ | 16,876 |  |  | $ | 7,881 |  |  | $ | 918 |  |  | $ | 25,675 |
Allowance for Loan and Lease Losses and Balances by Type of Allowance Methodology | The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology.
|  | As of June 30, 2022
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Allowance for loan and lease losses: |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | $ | 13,410 |  |  | $ | 8,612 |  |  | $ | 828 |  |  | $ | 22,850 |
Individually evaluated for impairment |  | — |  |  | 1,254 |  |  | — |  |  | 1,254 |
Total |  | $ | 13,410 |  |  | $ | 9,866 |  |  | $ | 828 |  |  | $ | 24,104 |
Loans and lease receivables: |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | $ | 1,488,334 |  |  | $ | 749,454 |  |  | $ | 47,519 |  |  | $ | 2,285,307 |
Individually evaluated for impairment |  | 146 |  |  | 5,627 |  |  | — |  |  | 5,773 |
Total |  | $ | 1,488,480 |  |  | $ | 755,081 |  |  | $ | 47,519 |  |  | $ | 2,291,080 |
|  | As of December 31, 2021
|  | Commercial Real Estate |  | Commercial and Industrial |  | Consumer and Other |  | Total
|  | (In Thousands)
Allowance for loan and lease losses: |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | $ | 15,110 |  |  | $ | 6,908 |  |  | $ | 813 |  |  | $ | 22,831 |
Individually evaluated for impairment |  | — |  |  | 1,505 |  |  | — |  |  | 1,505 |
Total |  | $ | 15,110 |  |  | $ | 8,413 |  |  | $ | 813 |  |  | $ | 24,336 |
Loans and lease receivables: |  |  |  |  |  |  |  |
Collectively evaluated for impairment |  | $ | 1,453,941 |  |  | $ | 740,674 |  |  | $ | 39,741 |  |  | $ | 2,234,356 |
Individually evaluated for impairment |  | 687 |  |  | 5,888 |  |  | — |  |  | 6,575 |
Total |  | $ | 1,454,628 |  |  | $ | 746,562 |  |  | $ | 39,741 |  |  | $ | 2,240,931 |

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