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Loan and Lease Receivables, Impaired Loans and Leases and Allowance for Loan and Lease Losses
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
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,
2022		December 31,
2021
 (In Thousands)
Commercial real estate:  
Commercial real estate — owner occupied
$268,354 $235,589 
Commercial real estate — non-owner occupied
687,091 661,423 
Land development
50,803 42,792 
Construction
167,948 179,841 
Multi-family
350,026 320,072 
1-4 family
17,728 14,911 
Total commercial real estate1,541,950 1,454,628 
Commercial and industrial841,178 730,819 
Direct financing leases, net12,149 15,743 
Consumer and other:  
Home equity and second mortgages6,761 4,223 
Other41,177 35,518 
Total consumer and other
47,938 39,741 
Total gross loans and leases receivable
2,443,215 2,240,931 
Less:  
Allowance for loan and lease losses
24,230 24,336 
Deferred loan fees
149 1,523 
Loans and leases receivable, net$2,418,836 $2,215,072 
As of December 31, 2022 and 2021, the Corporation had $554,000 and $27.9 million, respectively, in gross PPP loans outstanding included in the commercial and industrial loan category and deferred processing fees outstanding of $48,000 and $557,000, respectively, 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,
2022		December 31,
2021
(In Thousands)
SBA 7(a) loans$36,047 $33,223 
SBA 504 loans25,098 41,394 
SBA Express loans and lines of credit130 387 
SBA PPP loans554 27,854 
Total SBA loans$61,829 $102,858 
As of December 31, 2022 and 2021, $1.1 million and $1.7 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, 2022 and 2021 was $29.9 million and $33.5 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 year ended December 31, 2022 and 2021 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, 2022 and 2021 was $88.5 million and $93.0 million, respectively.
The total principal amount of transferred participation interests in other, non-SBA originated loans during the year ended December 31, 2022 and 2021 was $96.0 million and $70.9 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, 2022 and 2021 was $222.9 million and $195.2 million, respectively. As of December 31, 2022 and 2021, the total amount of the Corporation’s partial ownership of these transferred loans on the Consolidated Balance Sheets was $339.0 million and $314.5 million, respectively. As of December 31, 2022 and 2021, the non-SBA originated participation portfolio contained no impaired loans. The Corporation does not share in the participant’s portion of any potential charge-offs. There were no loan participations purchased on the Consolidated Balance Sheets as of December 31, 2022 and 2021.
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, 2022December 31, 2021
(In Thousands)
Balance at beginning of year$1,288 $1,632 
New loans656 570 
Repayments(1,560)(914)
Change due to status of executive officers and directors(160)— 
Balance at end of year$224 $1,288 
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, 2022
 Category 
IIIIIIIVTotal
 (Dollars in Thousands)
Commercial real estate:     
Commercial real estate — owner occupied$256,242 $2,602 $9,510 $— $268,354 
Commercial real estate — non-owner occupied630,396 34,022 22,673 — 687,091 
Land development50,803 — — — 50,803 
Construction157,157 — 10,791 — 167,948 
Multi-family342,030 7,996 — — 350,026 
1-4 family17,600 98 — 30 17,728 
Total commercial real estate1,454,228 44,718 42,974 30 1,541,950 
Commercial and industrial783,158 19,954 34,281 3,785 841,178 
Direct financing leases, net10,490 365 1,294 — 12,149 
Consumer and other:    
Home equity and second mortgages6,761 — — — 6,761 
Other41,177 — — — 41,177 
Total consumer and other47,938 — — — 47,938 
Total gross loans and leases receivable$2,295,814 $65,037 $78,549 $3,815 $2,443,215 
Category as a % of total portfolio93.97 %2.66 %3.21 %0.16 %100.00 %
December 31, 2021
Category 
IIIIIIIVTotal
 (Dollars in Thousands)
Commercial real estate:     
Commercial real estate — owner occupied$218,965 $5,495 $10,781 $348 $235,589 
Commercial real estate — non-owner occupied599,089 30,363 31,971 — 661,423 
Land development42,291 501 — — 42,792 
Construction140,181 9,077 30,583 — 179,841 
Multi-family300,589 8,217 11,266 — 320,072 
1-4 family14,012 158 402 339 14,911 
Total commercial real estate1,315,127 53,811 85,003 687 1,454,628 
Commercial and industrial686,123 5,943 32,964 5,789 730,819 
Direct financing leases, net10,892 105 4,647 99 15,743 
Consumer and other:     
Home equity and second mortgages3,925 231 67 — 4,223 
Other35,385 133 — — 35,518 
Total consumer and other39,310 364 67 — 39,741 
Total gross loans and leases receivable$2,051,452 $60,223 $122,681 $6,575 $2,240,931 
Category as a % of total portfolio91.55 %2.69 %5.47 %0.29 %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 TDRs, 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, 2022
30-59
Days Past Due		60-89
Days Past Due		Greater
Than 90
Days Past Due		Total Past DueCurrentTotal Loans and Leases
 (Dollars in Thousands)
Accruing loans and leases      
Commercial real estate:      
Owner occupied$— $— $— $— $268,354 $268,354 
Non-owner occupied215 — — 215 686,876 687,091 
Land development— — — — 50,803 50,803 
Construction— — — — 167,948 167,948 
Multi-family— — — — 350,026 350,026 
1-4 family— — — — 17,698 17,698 
Commercial and industrial1,431 379 — 1,810 835,739 837,549 
Direct financing leases, net6 24 — 30 12,119 12,149 
Consumer and other: 
Home equity and second mortgages— — — — 6,761 6,761 
Other— — — — 41,177 41,177 
Total1,652 403 — 2,055 2,437,501 2,439,556 
Non-accruing loans and leases      
Commercial real estate:      
Owner occupied— — — — — — 
Non-owner occupied— — — — — — 
Land development— — — — — — 
Construction— — — — — — 
Multi-family— — — — — — 
1-4 family— — — — 30 30 
Commercial and industrial439 126 2,464 3,029 600 3,629 
Direct financing leases, net— — — — — — 
Consumer and other:  
Home equity and second mortgages— — — — — — 
Other— — — — — — 
Total439 126 2,464 3,029 630 3,659 
Total loans and leases      
Commercial real estate:      
Owner occupied— — — — 268,354 268,354 
Non-owner occupied215 — — 215 686,876 687,091 
Land development— — — — 50,803 50,803 
Construction— — — — 167,948 167,948 
Multi-family— — — — 350,026 350,026 
1-4 family— — — — 17,728 17,728 
Commercial and industrial1,870 505 2,464 4,839 836,339 841,178 
Direct financing leases, net6 24 — 30 12,119 12,149 
Consumer and other:   
Home equity and second mortgages— — — — 6,761 6,761 
Other— — — — 41,177 41,177 
Total$2,091 $529 $2,464 $5,084 $2,438,131 $2,443,215 
Percent of portfolio0.09 %0.02 %0.10 %0.21 %99.79 %100.00 %
December 31, 2021
30-59
Days Past Due		60-89
Days Past Due		Greater
Than 90
Days Past Due		Total Past DueCurrentTotal 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 
Construction394 — — 394 179,447 179,841 
Multi-family— — — — 320,072 320,072 
1-4 family100 — — 100 14,472 14,572 
Commercial and industrial907 536 — 1,443 723,804 725,247 
Direct financing leases, net281 14 — 295 15,349 15,644 
Consumer and other:      
Home equity and second mortgages— — — — 4,223 4,223 
Other— — — — 35,518 35,518 
Total2,102 550 — 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 industrial23 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— — — — — — 
Total23 36 1,642 1,701 4,657 6,358 
Total loans and leases      
Commercial real estate:      
Owner occupied420 — 113 533 235,056 235,589 
Non-owner occupied— — — — 661,423 661,423 
Land development— — — — 42,792 42,792 
Construction394 — — 394 179,447 179,841 
Multi-family— — — — 320,072 320,072 
1-4 family100 — — 100 14,811 14,911 
Commercial and industrial930 572 1,445 2,947 727,872 730,819 
Direct financing leases, net281 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 $2,240,931 
Percent of portfolio0.09 %0.03 %0.07 %0.19 %99.81 %100.00 %
The Corporation’s total impaired assets consisted of the following:
December 31,
2022		December 31,
2021
 (In Thousands)
Non-accrual loans and leases  
Commercial real estate:  
Commercial real estate — owner occupied$— $348 
Commercial real estate — non-owner occupied— — 
Land development— — 
Construction— — 
Multi-family— — 
1-4 family30 339 
Total non-accrual commercial real estate30 687 
Commercial and industrial3,629 5,572 
Direct financing leases, net— 99 
Consumer and other:  
Home equity and second mortgages— — 
Other— — 
Total non-accrual consumer and other loans— — 
Total non-accrual loans and leases3,659 6,358 
Repossessed assets, net95 164 
Total non-performing assets3,754 6,522 
Performing troubled debt restructurings156 217 
Total impaired assets$3,910 $6,739 
December 31,
2022		December 31,
2021
Total non-accrual loans and leases to gross loans and leases0.15 %0.28 %
Total non-performing assets to total gross loans and leases plus repossessed assets, net0.15 0.29 
Total non-performing assets to total assets0.13 0.25 
Allowance for loan and lease losses to gross loans and leases0.99 1.09 
Allowance for loan and lease losses to non-accrual loans and leases662.20 382.76 

As of December 31, 2022 and 2021, $30,000 and $627,000 of the non-accrual loans and leases were considered TDRs, respectively. As of December 31, 2022 and 2021, the Corporation allocated $0 and $134,000 of specific reserves to TDRs, respectively. There were no unfunded commitments associated with TDR loans and leases as of December 31, 2022.

All loans and leases modified as a TDR 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 as TDRs and the pre- and post-modification recorded investment by class of receivable:
For the Year Ended December 31,
2021
Number of LoansPre-Modification
Recorded
Investment		Post-Modification
Recorded
Investment
 (Dollars in Thousands)
Commercial and industrial3$239 $217 
For the year ended December 31, 2022, no loans were modified as a TDR.

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, 2021, the modification of terms primarily consisted of payment schedule modifications or principal reductions.

There were no loans modified as a TDR during the previous 12 months which subsequently defaulted during the year ended December 31, 2022 and one with a recorded investment of $280,000 that defaulted during the year ended December 31, 2021.

Additionally, the Corporation worked with borrowers impacted by COVID-19 and provided modifications to include interest only deferrals and principal and interest deferrals. These modifications were excluded from TDR classification under Section 4013 of the CARES Act or under applicable interagency guidance of the federal banking regulators. As of December 31, 2022, the Corporation had no deferrals outstanding. As of December 31, 2021, the Corporation had three deferrals outstanding, representing $293,000 in total loans.
The following represents additional information regarding the Corporation’s impaired loans and leases, including performing TDRs, by class:
As of and for the Year Ended December 31, 2022
Recorded
Investment(1)
Unpaid
Principal
Balance		Impairment
Reserve
Average
Recorded
Investment(2)
Foregone
Interest
Income		Interest
Income
Recognized		Net Foregone
Interest
Income
 (In Thousands)
With no impairment reserve recorded:       
Commercial real estate:       
Owner occupied$— $— $— $180 $14 $759 $(745)
Non-owner occupied— — — — — 1 (1)
Land development— — — — — — — 
Construction— — — — — 47 (47)
Multi-family— — — — — — — 
1-4 family30 35 — 112 8 41 (33)
Commercial and industrial1,193 1,194 — 3,271 275 585 (310)
Direct financing leases, net— — — 67 2 2 — 
Consumer and other:      
Home equity and second mortgages
— — — — — — — 
Other— — — — — — — 
Total1,223 1,229 — 3,630 299 1,435 (1,136)
With impairment reserve recorded:       
Commercial real estate:       
Owner occupied— — — — — — — 
Non-owner occupied— — — — — — — 
Land development— — — — — — — 
Construction— — — — — — — 
Multi-family— — — — — — — 
1-4 family— — — — — — — 
Commercial and industrial2,592 2,612 1,650 1,454 101 1 100 
Direct financing leases, net— — — — — — — 
Consumer and other:       
Home equity and second mortgages
— — — — — — — 
Other— — — — — — — 
Total2,592 2,612 1,650 1,454 101 1 100 
Total:       
Commercial real estate:       
Owner occupied— — — 180 14 759 (745)
Non-owner occupied— — — — — 1 (1)
Land development— — — — — — — 
Construction— — — — — 47 (47)
Multi-family— — — — — — — 
1-4 family30 35 — 112 8 41 (33)
Commercial and industrial3,785 3,806 1,650 4,725 376 586 (210)
Direct financing leases, net— — — 67 2 2 — 
Consumer and other:       
Home equity and second mortgages
— — — — — — — 
Other— — — — — — — 
Grand total$3,815 $3,841 $1,650 $5,084 $400 $1,436 $(1,036)
(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 family339 344 — 285 60 24 36 
Commercial and industrial3,717 3,819 — 7,914 522 179 343 
Direct financing leases, net15 15 — 2 1 — 1 
Consumer and other:       
   Home equity and second mortgages
— — — 40 7 9 (2)
   Other— — — 8 23 — 23 
      Total4,419 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 industrial2,072 2,072 1,439 1,456 109 8 101 
Direct financing leases, net84 84 66 50 4 — 4 
Consumer and other:       
   Home equity and second mortgages
— — — — — — — 
   Other— — — — — — — 
      Total2,156 2,156 1,505 1,506 113 8 105 
Total:       
Commercial real estate:       
   Owner occupied348 386 — 2,217 145 218 (73)
   Non-owner occupied— — — 2,281 233 16 217 
   Land development— — — 7 — — — 
   Construction— — — — — — — 
   Multi-family— — — — — — — 
   1-4 family339 344 — 285 60 24 36 
Commercial and industrial5,789 5,891 1,439 9,370 631 187 444 
Direct financing leases, net99 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.
As of and for the Year Ended December 31, 2020
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$4,338 $4,365 $— $4,565 $291 $72 $219 
   Non-owner occupied3,783 6,563 — 1,519 486 — 486 
   Land development890 5,187 — 1,192 14 — 14 
   Construction— — — — — — — 
   Multi-family— — — — — — — 
   1-4 family46 51 — 307 31 141 (110)
Commercial and industrial9,888 12,337 — 13,951 1,219 423 796 
Direct financing leases, net— — — 89 — — — 
Consumer and other:
   Home equity and second mortgages
— — — 1 — — — 
   Other21 688 — 85 41 — 41 
      Total18,966 29,191 — 21,709 2,082 636 1,446 
With impairment reserve recorded:       
Commercial real estate:       
   Owner occupied1,091 4,792 471 2,349 384 — 384 
   Non-owner occupied— — — — — — — 
   Land development— — — — — — — 
   Construction— — — — — — — 
   Multi-family— — — — — — — 
   1-4 family250 250 29 21 — — — 
Commercial and industrial6,267 6,972 3,125 3,585 324 — 324 
Direct financing leases, net49 49 49 39 3 — 3 
Consumer and other:
   Home equity and second mortgages
40 40 7 — 1 — 1 
   Other— — — — — — — 
      Total7,697 12,103 3,681 5,994 712 — 712 
Total:       
Commercial real estate:       
   Owner occupied5,429 9,157 471 6,914 675 72 603 
   Non-owner occupied3,783 6,563 — 1,519 486 — 486 
   Land development890 5,187 — 1,192 14 — 14 
   Construction— — — — — — — 
   Multi-family— — — — — — — 
   1-4 family296 301 29 328 31 141 (110)
Commercial and industrial16,155 19,309 3,125 17,536 1,543 423 1,120 
Direct financing leases, net49 49 49 128 3 — 3 
Consumer and other:
Home equity and second mortgages40 40 7 1 1 — 1 
Other21 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.
The difference between the recorded investment of loans and leases and the unpaid principal balance of $26,000 and $145,000 as of December 31, 2022 and 2021, 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 $156,000 and $217,000 of loans as of December 31, 2022 and 2021, respectively, that were performing TDRs, 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 Year Ended December 31, 2022
Commercial
Real Estate		Commercial
and
Industrial		Consumer
and Other		Total
 (In Thousands)
Beginning balance$15,110 $8,413 $813 $24,336 
Charge-offs— (958)(21)(979)
Recoveries4,262 437 42 4,741 
Net recoveries (charge-offs)4,262 (521)21 3,762 
Provision for loan and lease losses(6,812)3,236 (292)(3,868)
Ending balance$12,560 $11,128 $542 $24,230 
 As of and for the Year Ended December 31, 2021
Commercial
Real Estate		Commercial
and
Industrial		Consumer
and Other		Total
 (In Thousands)
Beginning balance$17,157 $10,593 $771 $28,521 
Charge-offs(256)(3,227)(25)(3,508)
Recoveries3,935 1,168 23 5,126 
Net recoveries (charge-offs)3,679 (2,059)(2)1,618 
Provision for loan and lease losses(5,726)(121)44 (5,803)
Ending balance$15,110 $8,413 $813 $24,336 
 As of and for the Year Ended December 31, 2020
Commercial
Real Estate		Commercial
and
Industrial		Consumer
and Other		Total
 (In Thousands)
Beginning balance$10,852 $8,078 $590 $19,520 
Charge-offs(6,119)(2,007)(13)(8,139)
Recoveries4 325 3 332 
Net charge-offs(6,115)(1,682)(10)(7,807)
Provision for loan and lease losses12,420 4,197 191 16,808 
Ending balance$17,157 $10,593 $771 $28,521 
The following tables provide information regarding the allowance for loan and lease losses and balances by type of allowance methodology:
 December 31, 2022
Commercial
Real Estate		Commercial
and
Industrial		Consumer
and Other		Total
 (In Thousands)
Allowance for loan and lease losses:    
Collectively evaluated for impairment$12,560 $9,478 $542 $22,580 
Individually evaluated for impairment— 1,650 — 1,650 
Total$12,560 $11,128 $542 $24,230 
Loans and lease receivables:    
Collectively evaluated for impairment$1,541,920 $849,542 $47,938 2,439,400 
Individually evaluated for impairment30 3,785 — 3,815 
Total$1,541,950 $853,327 $47,938 $2,443,215 
 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 impairment687 5,888 — 6,575 
Total$1,454,628 $746,562 $39,741 $2,240,931 

The Corporation’s net investment in direct financing leases consists of the following:
 December 31,
2022		December 31,
2021
 (In Thousands)
Minimum lease payments receivable$10,673 $13,641 
Estimated unguaranteed residual values in leased property2,776 3,564 
Unearned lease and residual income(1,300)(1,462)
Investment in commercial direct financing leases$12,149 $15,743 

The Corporation leases equipment under direct financing leases expiring in future years. Some of these leases provide for additional rents 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, 
2023$4,246 
20242,802 
20251,507 
2026967 
2027637 
Thereafter514 
$10,673