Loans Receivable, Net

The Company’s loan portfolio is comprised of three segments: residential real estate, commercial, and consumer and other loans. The loan segments are further disaggregated into the following classes: residential real estate, commercial real estate, other commercial, home equity and other consumer loans. The following tables are presented for each portfolio class of loans receivable and provide information about the ALLL, loans receivable, impaired loans and TDRs.

The following schedules summarize the activity in the ALLL:



	Year ended December 31, 2014
(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	$	130,351		14,067		70,332		28,630		9,299		8,023
Provision for loan losses	1,912			716		(2,877	)	3,708		1,254		(889	)
Charge-offs	(7,603		)	(431	)	(1,802	)	(3,058	)	(1,038	)	(1,274	)
Recoveries	5,093			328		2,146		1,611		448		560
Balance at end of period	$	129,753		14,680		67,799		30,891		9,963		6,420



	Year ended December 31, 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	6,887			(921	)	(3,670	)	10,271		868		339
Charge-offs	(13,643		)	(793	)	(3,736	)	(4,671	)	(2,594	)	(1,849	)
Recoveries	6,253			299		3,340		1,463		366		785
Balance at end of period	$	130,351		14,067		70,332		28,630		9,299		8,023



	Year ended 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
Balance at beginning of period	$	137,516		17,227		76,920		20,833		13,616		8,920
Provision for loan losses	21,525			2,879		11,012		4,690		324		2,620
Charge-offs	(34,672		)	(5,267	)	(16,339	)	(5,239	)	(4,369	)	(3,458	)
Recoveries	6,485			643		2,805		1,283		1,088		666
Balance at end of period	$	130,854		15,482		74,398		21,567		10,659		8,748

Note 4. Loans Receivable, Net (continued)

The following schedules disclose the ALLL and loans receivable:



	December 31, 2014
(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	$	11,597	853	2,967	6,836	447	494
Collectively evaluated for impairment	118,156		13,827	64,832	24,055	9,516	5,926
Total allowance for loan and lease losses	$	129,753	14,680	67,799	30,891	9,963	6,420
Loans receivable
Individually evaluated for impairment	$	161,366	19,576	105,264	25,321	6,901	4,304
Collectively evaluated for impairment	4,326,729		591,887	2,232,284	900,579	387,769	214,210
Total loans receivable	$	4,488,095	611,463	2,337,548	925,900	394,670	218,514



	December 31, 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	$	11,949	990	3,763	6,155	265	776
Collectively evaluated for impairment	118,402		13,077	66,569	22,475	9,034	7,247
Total allowance for loan and lease losses	$	130,351	14,067	70,332	28,630	9,299	8,023
Loans receivable
Individually evaluated for impairment	$	199,680	24,070	119,526	41,504	9,039	5,541
Collectively evaluated for impairment	3,863,158		553,519	1,929,721	810,532	357,426	211,960
Total loans receivable	$	4,062,838	577,589	2,049,247	852,036	366,465	217,501

Substantially all of the Company’s loans receivable 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. The Company is subject to regulatory limits for the amount of loans to any individual borrower and the Company is in compliance with this regulation as of December 31, 2014 and 2013. No borrower had outstanding loans or commitments exceeding 10 percent of the Company’s consolidated stockholders’ equity as of December 31, 2014.

Net deferred fees, costs, premiums and discounts of $13,710,000 and $10,662,000 were included in the loans receivable balance at December 31, 2014 and 2013, respectively. At December 31, 2014, the Company had $2,915,617,000 in variable rate loans and $1,572,478,000 in fixed rate loans. The weighted-average interest rate on loans was 4.86 percent and 5.04 percent at December 31, 2014 and 2013, respectively. At December 31, 2014, 2013, and 2012, loans sold and serviced for others were $133,768,000, $148,376,000, and $116,439,000, respectively. At December 31, 2014, the Company had loans of $2,596,010,000 pledged as collateral for FHLB advances and FRB discount window. There were no significant purchases or sales of loans designated held-to-maturity during 2014 and 2013.

The Company has entered into transactions with its executive officers and directors and their affiliates. The aggregate amount of loans outstanding to such related parties at December 31, 2014 and 2013 was $49,446,000 and $35,224,000, respectively. During 2014, new loans to such related parties were $24,380,000, repayments were $9,864,000 and the effect of changes in composition of related parties was $(294,000). In management’s opinion, such loans were made in the ordinary course of business and were made on substantially the same terms as those prevailing at the time for comparable transaction with other persons.

Note 4. Loans Receivable, Net (continued)

The following schedules disclose the impaired loans:



	At or for the Year ended December 31, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	45,688	4,110	27,155	11,377	1,214	1,832
Unpaid principal balance	48,477		4,276	28,048	12,461	1,336	2,356
Specific valuation allowance	11,597		853	2,967	6,836	447	494
Average balance	53,339		5,480	24,519	19,874	1,039	2,427
Loans without a specific valuation allowance
Recorded balance	$	115,678	15,466	78,109	13,944	5,687	2,472
Unpaid principal balance	145,038		16,683	100,266	19,117	6,403	2,569
Average balance	128,645		15,580	89,015	14,024	7,163	2,863
Total
Recorded balance	$	161,366	19,576	105,264	25,321	6,901	4,304
Unpaid principal balance	193,515		20,959	128,314	31,578	7,739	4,925
Specific valuation allowance	11,597		853	2,967	6,836	447	494
Average balance	181,984		21,060	113,534	33,898	8,202	5,290



	At or for the Year ended December 31, 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	$	61,503	7,233	23,917	27,015	886	2,452
Unpaid principal balance	63,406		7,394	25,331	27,238	949	2,494
Specific valuation allowance	11,949		990	3,763	6,155	265	776
Average balance	59,823		7,237	26,105	22,460	767	3,254
Loans without a specific valuation allowance
Recorded balance	$	138,177	16,837	95,609	14,489	8,153	3,089
Unpaid principal balance	169,082		18,033	119,017	19,156	9,631	3,245
Average balance	139,129		18,103	95,808	14,106	8,844	2,268
Total
Recorded balance	$	199,680	24,070	119,526	41,504	9,039	5,541
Unpaid principal balance	232,488		25,427	144,348	46,394	10,580	5,739
Specific valuation allowance	11,949		990	3,763	6,155	265	776
Average balance	198,952		25,340	121,913	36,566	9,611	5,522

Interest income recognized on impaired loans for the years ended December 31, 2014, 2013, and 2012 was not significant.

Note 4. Loans Receivable, Net (continued)

The following is a loans receivable aging analysis:



	December 31, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	19,139	3,506	7,925	5,310	1,374	1,024
Accruing loans 60-89 days past due	6,765		1,686	3,592	609	679	199
Accruing loans 90 days or more past due	214		35	31	74	17	57
Non-accrual loans	61,882		6,798	39,717	8,421	5,969	977
Total past due and non-accrual loans	88,000		12,025	51,265	14,414	8,039	2,257
Current loans receivable	4,400,095		599,438	2,286,283	911,486	386,631	216,257
Total loans receivable	$	4,488,095	611,463	2,337,548	925,900	394,670	218,514



	December 31, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	25,761	10,367	7,016	3,673	2,432	2,273
Accruing loans 60-89 days past due	6,355		1,055	2,709	1,421	668	502
Accruing loans 90 days or more past due	604		429	—	160	5	10
Non-accrual loans	81,956		10,702	51,438	10,139	7,950	1,727
Total past due and non-accrual loans	114,676		22,553	61,163	15,393	11,055	4,512
Current loans receivable	3,948,162		555,036	1,988,084	836,643	355,410	212,989
Total loans receivable	$	4,062,838	577,589	2,049,247	852,036	366,465	217,501

Interest income that would have been recorded on non-accrual loans if such loans had been current for the entire period would have been approximately $3,005,000, $4,122,000, and $5,161,000 for the years ended December 31, 2014, 2013, and 2012, respectively.

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:



	Year ended December 31, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	51		—	18	24	6	3
Pre-modification recorded balance	$	37,781	—	21,760	12,522	3,385	114
Post-modification recorded balance	$	37,075	—	21,803	11,884	3,274	114
Troubled debt restructurings that subsequently defaulted
Number of loans	5		—	2	1	2	—
Recorded balance	$	4,453	—	927	693	2,833	—

Note 4. Loans Receivable, Net (continued)



	Year ended December 31, 2013
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	63		9	21	23	2	8
Pre-modification recorded balance	$	29,046	1,907	20,334	6,087	147	571
Post-modification recorded balance	$	29,359	2,293	20,334	6,087	147	498
Troubled debt restructurings that subsequently defaulted
Number of loans	5		1	1	3	—	—
Recorded balance	$	849	265	79	505	—	—



	Year ended December 31, 2012
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	198		11	85	75	10	17
Pre-modification recorded balance	$	90,747	2,280	57,382	28,639	1,358	1,088
Post-modification recorded balance	$	89,558	2,281	56,120	28,711	1,358	1,088
Troubled debt restructurings that subsequently defaulted
Number of loans	14		—	4	6	3	1
Recorded balance	$	8,304	—	6,192	1,753	301	58

For the years ended December 31, 2014, 2013 and 2012 the majority of TDRs occurred in the commercial real estate class. The concessions granted typically were for extensions of maturity date and 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 $12,674,000, $18,345,000 and $39,769,000 for the years ended December 31, 2014, 2013 and 2012, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs for all years was in commercial real estate. At December 31, 2014, the Company had $698,000 of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At December 31, 2014, the Company had $2,322,000 of OREO secured by residential real estate properties.

There were $4,263,000 and $2,024,000 of additional unfunded commitments on TDRs outstanding at December 31, 2014 and 2013, respectively. The amount of charge-offs on TDRs during 2014, 2013 and 2012 was $1,361,000, $1,945,000 and $6,271,000, respectively.