Loans and Leases

The following tables present loan and lease balances and weighted average coupon rates for the originated and acquired loan and lease portfolios at the dates indicated:



	At September 30, 2016
	Originated				Acquired				Total
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars in Thousands)
Commercial real estate loans:
Commercial real estate	$	1,880,163	3.94	%	$	158,314	4.19	%	$	2,038,477	3.96	%
Multi-family mortgage	673,108		3.77	%	30,635		4.52	%	703,743		3.81	%
Construction	140,990		3.72	%	218		3.67	%	141,208		3.72	%
Total commercial real estate loans	2,694,261		3.89	%	189,167		4.24	%	2,883,428		3.91	%
Commercial loans and leases:
Commercial	636,658		3.95	%	15,658		5.24	%	652,316		3.98	%
Equipment financing	758,086		7.06	%	6,561		5.87	%	764,647		7.05	%
Condominium association	53,903		4.41	%	—		—	%	53,903		4.41	%
Total commercial loans and leases	1,448,647		5.59	%	22,219		5.43	%	1,470,866		5.59	%
Indirect automobile loans	7,607		5.44	%	—		—	%	7,607		5.44	%
Consumer loans:
Residential mortgage	540,650		3.65	%	76,415		3.93	%	617,065		3.68	%
Home equity	282,504		3.42	%	58,450		4.15	%	340,954		3.54	%
Other consumer	12,254		5.15	%	126		17.85	%	12,380		5.28	%
Total consumer loans	835,408		3.59	%	134,991		4.04	%	970,399		3.65	%
Total loans and leases	$	4,985,923	4.34	%	$	346,377	4.24	%	$	5,332,300	4.33	%



	At December 31, 2015
	Originated				Acquired				Total
	Balance		Weighted Average Coupon		Balance		Weighted Average Coupon		Balance		Weighted Average Coupon
	(Dollars in Thousands)
Commercial real estate loans:
Commercial real estate	$	1,684,548	4.00	%	$	191,044	4.15	%	$	1,875,592	4.02	%
Multi-family mortgage	620,865		3.92	%	37,615		4.35	%	658,480		3.94	%
Construction	129,742		3.60	%	580		5.08	%	130,322		3.61	%
Total commercial real estate loans	2,435,155		3.96	%	229,239		4.19	%	2,664,394		3.98	%
Commercial loans and leases:
Commercial	576,599		3.90	%	15,932		5.65	%	592,531		3.95	%
Equipment financing	712,988		7.05	%	8,902		6.14	%	721,890		7.04	%
Condominium association	59,875		4.50	%	—		—	%	59,875		4.50	%
Total commercial loans and leases	1,349,462		5.59	%	24,834		5.83	%	1,374,296		5.59	%
Indirect automobile loans	13,678		5.53	%	—		—	%	13,678		5.53	%
Consumer loans:
Residential mortgage	527,846		3.64	%	88,603		3.85	%	616,449		3.67	%
Home equity	234,708		3.35	%	79,845		3.99	%	314,553		3.51	%
Other consumer	12,039		4.77	%	131		17.40	%	12,170		4.91	%
Total consumer loans	774,593		3.57	%	168,579		3.93	%	943,172		3.63	%
Total loans and leases	$	4,572,888	4.38	%	$	422,652	4.18	%	$	4,995,540	4.36	%

The net unamortized deferred loan origination fees and costs included in total loans and leases were $13.9 million and $12.8 million as of September 30, 2016 and December 31, 2015, respectively.

The Company's Banks and subsidiaries lend primarily in eastern Massachusetts, southern New Hampshire, and Rhode Island, with the exception of equipment financing, 31.3% of which is in the greater New York and New Jersey metropolitan area and 68.7% of which is in other areas in the United States of America at September 30, 2016, as compared to 32.8% of which is in the greater New York and New Jersey metropolitan area and 67.2% of which in other areas is in the United States of America as of December 31, 2015.

Competition for the indirect automobile loans increased significantly as credit unions and large national banks entered indirect automobile lending. That competition drove interest rates down and, in some cases, changed the manner in which interest rates are developed, from including a dealer-shared spread to imposing a dealer-based fee to originate the loan. Given this market condition, management ceased the Company's origination of indirect automobile loans in December 2014. For the three months ended March 31, 2015, the Company sold over 90% of the portfolio for $255.2 million, which resulted in a loss of $11.8 thousand excluding the impact of the allowance for loan and lease losses.

Accretable Yield for the Acquired Loan Portfolio

The following table summarizes activity in the accretable yield for the acquired loan portfolio for the periods indicated:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(In Thousands)
Balance at beginning of period	$	18,038		$	28,730		$	20,796		$	32,044
Accretion	(1,479		)	(2,387		)	(3,914		)	(7,822		)
Reclassification from nonaccretable difference for loans with improved cash flows	1,129			1,242			2,419			3,045
Changes in expected cash flows that do not affect nonaccretable difference ⁽¹⁾	(1,506		)	(3,403		)	(3,119		)	(3,085		)
Balance at end of period	$	16,182		$	24,182		$	16,182		$	24,182

⁽¹⁾ Represents changes in interest cash flows due to changes in interest rates on variable rate loans.

On a quarterly basis and subsequent to acquisition, management reforecasts the expected cash flows for acquired ASC 310-30 loans, taking into account prepayment speeds, probability of default, and loss given defaults. Management compares cash flow projections per the reforecast to the original cash flow projections and determines whether any reduction in cash flow expectations is due to credit deterioration, or if the change in cash flow expectations are related to noncredit events. This cash flow analysis is used to evaluate the need for a provision for loan and lease losses and/or prospective yield adjustments. During the three months ended September 30, 2016 and 2015, accretable yield adjustments totaling $1.1 million and $1.2 million, respectively, were made for certain loan pools. During the nine months ended September 30, 2016 and 2015, accretable yield adjustments totaling $2.4 million and $3.0 million, respectively, were made for certain loan pools. These prospective accretable yield adjustments, which are subject to continued re-assessment, will be recognized over the remaining lives of those pools.

The aggregate remaining nonaccretable difference applicable to acquired loans and leases totaled $2.2 million and $2.9 million at September 30, 2016 and December 31, 2015, respectively.

Loans and Leases Pledged as Collateral

At September 30, 2016 and December 31, 2015, respectively, $1.9 billion and $1.8 billion of loans and leases were pledged as collateral for repurchase agreements, municipal deposits, treasury, tax and loan deposits; swap agreements, and FHLB borrowings. The Banks did not have any outstanding FRB borrowings at September 30, 2016 and December 31, 2015.