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 table presents loans receivable for each portfolio class of loans:



(Dollars in thousands)	September 30, 2015			December 31, 2014
Residential real estate loans	$	644,694		611,463
Commercial loans
Real estate	2,500,952			2,337,548
Other commercial	1,080,715			925,900
Total	3,581,667			3,263,448
Consumer and other loans
Home equity	412,256			394,670
Other consumer	237,802			218,514
Total	650,058			613,184
Loans receivable ¹	4,876,419			4,488,095
Allowance for loan and lease losses	(130,768		)	(129,753	)
Loans receivable, net	$	4,745,651		4,358,342

__________


¹	Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014, respectively.

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 following tables summarize the activity in the ALLL by portfolio segment:



	Three Months ended September 30, 2015
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	130,519		14,850		68,697		31,483		8,946		6,543
Provision for loan losses	826			854		(657	)	195		397		37
Charge-offs	(2,073		)	(20	)	(921	)	(367	)	(433	)	(332	)
Recoveries	1,496			24		907		290		136		139
Balance at end of period	$	130,768		15,708		68,026		31,601		9,046		6,387



	Three Months ended September 30, 2014
(Dollars in thousands)	Total			Residential Real Estate	Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	130,636		14,624	68,929		29,589		9,725		7,769
Provision for loan losses	360			374	(1,072	)	758		900		(600	)
Charge-offs	(2,243		)	—	(944	)	(579	)	(607	)	(113	)
Recoveries	1,879			42	650		997		86		104
Balance at end of period	$	130,632		15,040	67,563		30,765		10,104		7,160



	Nine Months ended September 30, 2015
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,753		14,680		67,799		30,891		9,963		6,420
Provision for loan losses	1,873			1,036		(452	)	1,839		(621	)	71
Charge-offs	(4,671		)	(78	)	(1,669	)	(1,736	)	(586	)	(602	)
Recoveries	3,813			70		2,348		607		290		498
Balance at end of period	$	130,768		15,708		68,026		31,601		9,046		6,387



	Nine Months ended September 30, 2014
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	130,351		14,067		70,332		28,630		9,299		8,023
Provision for loan losses	1,721			1,111		(3,261	)	3,025		1,411		(565	)
Charge-offs	(5,567		)	(413	)	(1,208	)	(2,328	)	(906	)	(712	)
Recoveries	4,127			275		1,700		1,438		300		414
Balance at end of period	$	130,632		15,040		67,563		30,765		10,104		7,160

The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment:



	September 30, 2015
(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	$	7,497	1,857	1,224	3,956	52	408
Collectively evaluated for impairment	123,271		13,851	66,802	27,645	8,994	5,979
Total allowance for loan and lease losses	$	130,768	15,708	68,026	31,601	9,046	6,387
Loans receivable
Individually evaluated for impairment	$	146,239	22,483	88,122	24,343	7,405	3,886
Collectively evaluated for impairment	4,730,180		622,211	2,412,830	1,056,372	404,851	233,916
Total loans receivable	$	4,876,419	644,694	2,500,952	1,080,715	412,256	237,802



	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

The following tables disclose information related to impaired loans by portfolio segment:



	At or for the Three or Nine Months ended September 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	32,176	9,438	11,360	9,532	175	1,671
Unpaid principal balance	32,931		9,580	11,384	9,613	195	2,159
Specific valuation allowance	7,497		1,857	1,224	3,956	52	408
Average balance - three months	33,095		7,246	13,236	10,697	205	1,711
Average balance - nine months	36,549		5,927	16,646	11,729	507	1,740
Loans without a specific valuation allowance
Recorded balance	$	114,063	13,045	76,762	14,811	7,230	2,215
Unpaid principal balance	140,979		14,389	97,633	18,469	8,209	2,279
Average balance - three months	115,891		13,095	78,255	15,505	6,788	2,248
Average balance - nine months	118,921		13,890	80,032	16,361	6,339	2,299
Total
Recorded balance	$	146,239	22,483	88,122	24,343	7,405	3,886
Unpaid principal balance	173,910		23,969	109,017	28,082	8,404	4,438
Specific valuation allowance	7,497		1,857	1,224	3,956	52	408
Average balance - three months	148,986		20,341	91,491	26,202	6,993	3,959
Average balance - nine months	155,470		19,817	96,678	28,090	6,846	4,039



	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

Interest income recognized on impaired loans for the nine months ended September 30, 2015 and 2014 was not significant.

The following tables present an aging analysis of the recorded investment in loans by portfolio segment:



	September 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	10,753	399	4,126	3,958	1,380	890
Accruing loans 60-89 days past due	7,069		236	5,567	501	549	216
Accruing loans 90 days or more past due	3,784		43	1,675	1,999	22	45
Non-accrual loans	54,632		9,590	29,251	8,160	6,856	775
Total past due and non-accrual loans	76,238		10,268	40,619	14,618	8,807	1,926
Current loans receivable	4,800,181		634,426	2,460,333	1,066,097	403,449	235,876
Total loans receivable	$	4,876,419	644,694	2,500,952	1,080,715	412,256	237,802



	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

The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented:



	Three Months ended September 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	10		2	3	4	—	1
Pre-modification recorded balance	$	3,004	2,134	436	397	—	37
Post-modification recorded balance	$	3,004	2,134	436	397	—	37
Troubled debt restructurings that subsequently defaulted
Number of loans	3		1	—	2	—	—
Recorded balance	$	2,287	1,947	—	340	—	—



	Three Months ended September 30, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	12		—	8	3	—	1
Pre-modification recorded balance	$	8,681	—	8,361	309	—	11
Post-modification recorded balance	$	8,681	—	8,361	309	—	11
Troubled debt restructurings that subsequently defaulted
Number of loans	3		—	2	1	—	—
Recorded balance	$	1,620	—	927	693	—	—



	Nine Months ended September 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	30		2	12	12	—	4
Pre-modification recorded balance	$	10,127	2,134	5,446	2,306	—	241
Post-modification recorded balance	$	9,833	2,134	5,366	2,092	—	241
Troubled debt restructurings that subsequently defaulted
Number of loans	7		1	1	3	1	1
Recorded balance	$	2,542	1,947	78	440	75	2



	Nine Months ended September 30, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	38		—	16	18	2	2
Pre-modification recorded balance	$	32,957	—	12,793	19,908	242	14
Post-modification recorded balance	$	32,320	—	12,836	19,228	242	14
Troubled debt restructurings that subsequently defaulted
Number of loans	7		—	2	5	—	—
Recorded balance	$	1,676	—	927	749	—	—

The modifications for the TDRs that occurred during the nine months ended September 30, 2015 and 2014 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount.

In addition to the TDRs that occurred during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $7,677,000 and $10,178,000 for the nine months ended September 30, 2015 and 2014, respectively, for which other real estate owned (“OREO”) was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate for the nine months ended September 30, 2015 and 2014. At September 30, 2015, the Company had $3,864,000 of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At September 30, 2015, the Company had $1,308,000 of OREO secured by residential real estate properties.