Note 3. Loans Receivable, Net

The following schedules summarize the activity in the ALLL on a portfolio class basis:



	Three Months ended June 30, 2013
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Allowance for loan and lease losses
Balance at beginning of period	$	130,835		15,411		73,335		22,481		10,833		8,775
Provision for loan losses	1,078			(509	)	520		1,880		(1,016	)	203
Charge-offs	(2,271		)	(172	)	(538	)	(594	)	(291	)	(676	)
Recoveries	1,241			67		568		349		100		157
Balance at end of period	$	130,883		14,797		73,885		24,116		9,626		8,459



	Three Months ended June 30, 2012
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Allowance for loan and lease losses
Balance at beginning of period	$	136,586		19,003		73,240		22,444		13,364		8,535
Provision for loan losses	7,925			22		10,374		(1,255	)	(1,471	)	255
Charge-offs	(8,679		)	(953	)	(5,549	)	(887	)	(1,077	)	(213	)
Recoveries	1,627			67		1,033		268		88		171
Balance at end of period	$	137,459		18,139		79,098		20,570		10,904		8,748



	Six Months ended June 30, 2013
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Allowance for loan and lease losses
Balance at beginning of period	$	130,854		15,482		74,398		21,567		10,659		8,748
Provision for loan losses	3,178			(486	)	(432	)	3,579		441		76
Charge-offs	(5,885		)	(349	)	(1,303	)	(1,752	)	(1,629	)	(852	)
Recoveries	2,736			150		1,222		722		155		487
Balance at end of period	$	130,883		14,797		73,885		24,116		9,626		8,459



	Six Months ended June 30, 2012
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Allowance for loan and lease losses
Balance at beginning of period	$	137,516		17,227		76,920		20,833		13,616		8,920
Provision for loan losses	16,550			2,085		13,010		1,304		(470	)	621
Charge-offs	(19,737		)	(1,320	)	(12,534	)	(2,356	)	(2,358	)	(1,169	)
Recoveries	3,130			147		1,702		789		116		376
Balance at end of period	$	137,459		18,139		79,098		20,570		10,904		8,748

The following schedules disclose the ALLL and loans receivable on a portfolio class basis:



	June 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Allowance for loan and lease losses
Individually evaluated for impairment	$	11,382	1,026	6,100	3,553	24	679
Collectively evaluated for impairment	119,501		13,771	67,785	20,563	9,602	7,780
Total allowance for loan and lease losses	$	130,883	14,797	73,885	24,116	9,626	8,459
Loans receivable
Individually evaluated for impairment	$	192,573	24,719	117,836	36,705	8,432	4,881
Collectively evaluated for impairment	3,480,883		507,115	1,703,764	686,482	376,256	207,266
Total loans receivable	$	3,673,456	531,834	1,821,600	723,187	384,688	212,147



	December 31, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Allowance for loan and lease losses
Individually evaluated for impairment	$	15,534	1,680	7,716	3,859	870	1,409
Collectively evaluated for impairment	115,320		13,802	66,682	17,708	9,789	7,339
Total allowance for loan and lease losses	$	130,854	15,482	74,398	21,567	10,659	8,748
Loans receivable
Individually evaluated for impairment	$	201,735	25,862	125,282	33,593	11,074	5,924
Collectively evaluated for impairment	3,195,690		490,605	1,530,226	589,804	392,851	192,204
Total loans receivable	$	3,397,425	516,467	1,655,508	623,397	403,925	198,128

Substantially all of the Company’s loan receivables are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas. Net deferred fees, costs, premiums, and discounts of $4,722,000 and $1,379,000 were included in the loans receivable balance at June 30, 2013 and December 31, 2012, respectively.

The following schedules disclose the impaired loans by portfolio class basis:



	At or for the Three or Six Months ended June 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	57,021	6,975	24,857	21,191	318	3,680
Unpaid principal balance	58,739		7,199	25,954	21,298	321	3,967
Specific valuation allowance	11,382		1,026	6,100	3,553	24	679
Average balance - three months	56,118		6,865	24,411	20,856	460	3,526
Average balance - six months	58,331		7,021	26,139	20,972	758	3,441
Loans without a specific valuation allowance
Recorded balance	$	135,552	17,744	92,979	15,514	8,114	1,201
Unpaid principal balance	154,815		18,846	107,676	17,731	9,318	1,244
Average balance - three months	137,096		17,967	95,185	13,816	8,466	1,662
Average balance - six months	137,722		18,154	95,352	13,340	8,883	1,993
Totals
Recorded balance	$	192,573	24,719	117,836	36,705	8,432	4,881
Unpaid principal balance	213,554		26,045	133,630	39,029	9,639	5,211
Specific valuation allowance	11,382		1,026	6,100	3,553	24	679
Average balance - three months	193,214		24,832	119,596	34,672	8,926	5,188
Average balance - six months	196,053		25,175	121,491	34,312	9,641	5,434



	At or for the Year ended December 31, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	62,759	7,334	29,595	21,205	1,354	3,271
Unpaid principal balance	70,261		7,459	36,887	21,278	1,362	3,275
Specific valuation allowance	15,534		1,680	7,716	3,859	870	1,409
Average balance	76,656		12,797	36,164	22,665	1,390	3,640
Loans without a specific valuation allowance
Recorded balance	$	138,976	18,528	95,687	12,388	9,720	2,653
Unpaid principal balance	149,412		19,613	102,798	14,318	9,965	2,718
Average balance	162,505		16,034	111,554	19,733	11,993	3,191
Totals
Recorded balance	$	201,735	25,862	125,282	33,593	11,074	5,924
Unpaid principal balance	219,673		27,072	139,685	35,596	11,327	5,993
Specific valuation allowance	15,534		1,680	7,716	3,859	870	1,409
Average balance	239,161		28,831	147,718	42,398	13,383	6,831

Interest income recognized on impaired loans for the periods ended June 30, 2013 and December 31, 2012 was not significant.

The following is a loans receivable aging analysis on a portfolio class basis:



	June 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	18,772	1,318	8,904	4,007	3,774	769
Accruing loans 60-89 days past due	3,290		965	1,382	297	385	261
Accruing loans 90 days or more past due	456		240	—	22	146	48
Non-accrual loans	89,355		12,149	53,400	12,568	9,303	1,935
Total past due and non-accrual loans	111,873		14,672	63,686	16,894	13,608	3,013
Current loans receivable	3,561,583		517,162	1,757,914	706,293	371,080	209,134
Total loans receivable	$	3,673,456	531,834	1,821,600	723,187	384,688	212,147



	December 31, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	17,454	3,897	7,424	2,020	2,872	1,241
Accruing loans 60-89 days past due	9,643		1,870	3,745	645	2,980	403
Accruing loans 90 days or more past due	1,479		451	594	197	188	49
Non-accrual loans	96,933		14,237	55,687	13,200	11,241	2,568
Total past due and non-accrual loans	125,509		20,455	67,450	16,062	17,281	4,261
Current loans receivable	3,271,916		496,012	1,588,058	607,335	386,644	193,867
Total loans receivable	$	3,397,425	516,467	1,655,508	623,397	403,925	198,128

The following is a summary of the TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented on a portfolio class basis:



	Three Months ended June 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	18		—	4	10	2	2
Pre-modification recorded balance	$	2,645	—	1,340	1,067	160	78
Post-modification recorded balance	$	2,693	—	1,340	1,084	191	78
Troubled debt restructurings that subsequently defaulted
Number of loans	5		1	2	2	—	—
Recorded balance	$	1,982	265	1,555	162	—	—



	Three Months ended June 30, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	47		5	15	22	1	4
Pre-modification recorded balance	$	11,929	1,342	5,736	4,309	310	232
Post-modification recorded balance	$	10,650	1,342	4,444	4,322	310	232
Troubled debt restructurings that subsequently defaulted
Number of loans	9		—	4	2	1	2
Recorded balance	$	3,127	—	2,077	531	442	77



	Six Months ended June 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	42		7	13	17	2	3
Pre-modification recorded balance	$	9,160	1,623	4,656	2,572	160	149
Post-modification recorded balance	$	9,378	1,794	4,656	2,588	191	149
Troubled debt restructurings that subsequently defaulted
Number of loans	10		1	5	3	—	1
Recorded balance	$	3,145	265	2,607	228	—	45



	Six Months ended June 30, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	103		8	40	41	7	7
Pre-modification recorded balance	$	28,455	1,701	16,846	8,432	1,095	381
Post-modification recorded balance	$	26,469	1,701	14,838	8,454	1,095	381
Troubled debt restructurings that subsequently defaulted
Number of loans	20		—	11	5	2	2
Recorded balance	$	6,207	—	4,735	798	597	77

For the six months ended June 30, 2013 and 2012, the majority of TDRs occurring in most loan classes was a result of an extension of the maturity date which aggregated 48 percent and 31 percent, respectively, of total TDRs. For commercial real estate, the class with the largest dollar amount of TDRs, approximately 44 percent and 16 percent, respectively, was a result of an extension of the maturity date and 33 percent and 24 percent, respectively, was due to a combination of an interest rate reduction, extension of the maturity date, or reduction in the face amount.

In addition to the TDRs that occurred during the period provided in the preceding table, the Company had TDRs with pre-modification loan balances of $12,505,000 and $24,390,000 for the six months ended June 30, 2013 and 2012, respectively, for which other real estate owned (“OREO”) was received in full or partial satisfaction of the loans. The majority of such TDRs for both periods was in commercial real estate.