Note 3. Loans Receivable, Net

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



	Three Months ended September 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	$	130,883		14,797		73,885		24,116		9,626		8,459
Provision for loan losses	1,907			950		381		385		125		66
Charge-offs	(3,077		)	(42	)	(1,235	)	(1,065	)	(333	)	(402	)
Recoveries	1,052			45		367		385		73		182
Balance at end of period	$	130,765		15,750		73,398		23,821		9,491		8,305



	Three Months ended September 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	$	137,459		18,139		79,098		20,570		10,904		8,748
Provision for loan losses	2,700			209		(1,210	)	2,859		(555	)	1,397
Charge-offs	(5,052		)	(1,172	)	(586	)	(1,441	)	(1,044	)	(809	)
Recoveries	1,553			73		453		241		679		107
Balance at end of period	$	136,660		17,249		77,755		22,229		9,984		9,443



	Nine Months ended September 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	5,085			464		(51	)	3,964		566		142
Charge-offs	(8,962		)	(391	)	(2,538	)	(2,817	)	(1,962	)	(1,254	)
Recoveries	3,788			195		1,589		1,107		228		669
Balance at end of period	$	130,765		15,750		73,398		23,821		9,491		8,305



	Nine Months ended September 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	19,250			2,294		11,800		4,163		(1,025	)	2,018
Charge-offs	(24,789		)	(2,492	)	(13,120	)	(3,797	)	(3,402	)	(1,978	)
Recoveries	4,683			220		2,155		1,030		795		483
Balance at end of period	$	136,660		17,249		77,755		22,229		9,984		9,443

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



	September 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	$	12,728	1,088	6,662	3,810	109	1,059
Collectively evaluated for impairment	118,037		14,662	66,736	20,011	9,382	7,246
Total allowance for loan and lease losses	$	130,765	15,750	73,398	23,821	9,491	8,305
Loans receivable
Individually evaluated for impairment	$	206,918	27,104	125,566	38,390	10,091	5,767
Collectively evaluated for impairment	3,794,181		556,713	1,868,492	795,839	363,421	209,716
Total loans receivable	$	4,001,099	583,817	1,994,058	834,229	373,512	215,483



	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 $10,870,000 and $1,379,000 were included in the loans receivable balance at September 30, 2013 and December 31, 2012, respectively.

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



	At or for the Three or Nine Months ended September 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	$	62,614	7,887	28,194	22,368	673	3,492
Unpaid principal balance	64,969		8,032	29,463	22,986	717	3,771
Specific valuation allowance	12,728		1,088	6,662	3,810	109	1,059
Average balance - three months	59,817		7,431	26,525	21,780	495	3,586
Average balance - nine months	59,402		7,237	26,653	21,321	737	3,454
Loans without a specific valuation allowance
Recorded balance	$	144,304	19,217	97,372	16,022	9,418	2,275
Unpaid principal balance	174,258		20,681	120,914	19,233	11,026	2,404
Average balance - three months	139,928		18,481	95,175	15,768	8,766	1,738
Average balance - nine months	139,368		18,420	95,857	14,011	9,017	2,063
Totals
Recorded balance	$	206,918	27,104	125,566	38,390	10,091	5,767
Unpaid principal balance	239,227		28,713	150,377	42,219	11,743	6,175
Specific valuation allowance	12,728		1,088	6,662	3,810	109	1,059
Average balance - three months	199,745		25,912	121,700	37,548	9,261	5,324
Average balance - nine months	198,770		25,657	122,510	35,332	9,754	5,517



	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 September 30, 2013 and December 31, 2012 was not significant.

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



	September 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	$	21,294	516	11,829	5,854	1,828	1,267
Accruing loans 60-89 days past due	5,107		824	2,419	683	797	384
Accruing loans 90 days or more past due	174		—	109	35	28	2
Non-accrual loans	88,293		12,604	53,536	11,591	8,953	1,609
Total past due and non-accrual loans	114,868		13,944	67,893	18,163	11,606	3,262
Current loans receivable	3,886,231		569,873	1,926,165	816,066	361,906	212,221
Total loans receivable	$	4,001,099	583,817	1,994,058	834,229	373,512	215,483



	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 September 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	9		2	4	—	1	2
Pre-modification recorded balance	$	2,926	284	2,481	—	57	104
Post-modification recorded balance	$	3,141	499	2,481	—	57	104
Troubled debt restructurings that subsequently defaulted
Number of loans	2		—	—	2	—	—
Recorded balance	$	363	—	—	363	—	—



	Three Months ended September 30, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	46		1	21	19	2	3
Pre-modification recorded balance	$	38,125	280	20,866	16,601	219	159
Post-modification recorded balance	$	35,475	281	18,242	16,571	222	159
Troubled debt restructurings that subsequently defaulted
Number of loans	3		2	—	—	1	—
Recorded balance	$	1,792	1,622	—	—	170	—



	Nine Months ended September 30, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	50		9	17	17	2	5
Pre-modification recorded balance	$	12,016	1,907	7,137	2,572	147	253
Post-modification recorded balance	$	12,418	2,293	7,137	2,588	147	253
Troubled debt restructurings that subsequently defaulted
Number of loans	10		1	4	5	—	—
Recorded balance	$	2,772	265	1,918	589	—	—



	Nine Months ended September 30, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	149		9	61	60	9	10
Pre-modification recorded balance	$	66,580	1,981	37,712	25,033	1,314	540
Post-modification recorded balance	$	61,944	1,982	33,080	25,025	1,317	540
Troubled debt restructurings that subsequently defaulted
Number of loans	17		2	10	3	1	1
Recorded balance	$	10,204	1,622	7,553	801	170	58

For the nine months ended September 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 59 percent and 56 percent, respectively, of total TDRs. For commercial real estate, the class with the largest dollar amount of TDRs, approximately 63 percent and 44 percent, respectively, was a result of an extension of the maturity date and 25 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 $14,695,000 and $30,261,000 for the nine months ended September 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.