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:



	At or for the Six Months ended			At or for the Year ended
(Dollars in thousands)	June 30, 2016			December 31, 2015
Residential real estate loans	$	672,895		688,912
Commercial loans
Real estate	2,773,298			2,633,953
Other commercial	1,258,227			1,099,564
Total	4,031,525			3,733,517
Consumer and other loans
Home equity	431,659			420,901
Other consumer	242,538			235,351
Total	674,197			656,252
Loans receivable ¹	5,378,617			5,078,681
Allowance for loan and lease losses	(132,386		)	(129,697	)
Loans receivable, net	$	5,246,231		4,948,984
Weighted-average interest rate on loans (tax-equivalent)	4.83		%	4.84	%

__________


¹	Includes net deferred fees, costs, premiums and discounts of $12,188,000 and $15,529,000 at June 30, 2016 and December 31, 2015, respectively.

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



	Three Months ended June 30, 2016
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity	Other Consumer
Balance at beginning of period	$	130,071		13,196		67,046		36,054		8,149	5,626
Provision for loan losses	—			699		(2,617	)	654		447	817
Charge-offs	(1,369		)	(255	)	(34	)	(267	)	31	(844	)
Recoveries	3,684			26		2,414		590		2	652
Balance at end of period	$	132,386		13,666		66,809		37,031		8,629	6,251



	Three Months ended June 30, 2015
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,856		15,131		67,327		31,515		9,519		6,364
Provision for loan losses	282			(258	)	491		532		(559	)	76
Charge-offs	(1,301		)	(44	)	(303	)	(675	)	(122	)	(157	)
Recoveries	1,682			21		1,182		111		108		260
Balance at end of period	$	130,519		14,850		68,697		31,483		8,946		6,543



	Six Months ended June 30, 2016
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,697		14,427		67,877		32,525		8,998		5,870
Provision for loan losses	568			(450	)	(3,490	)	4,374		(346	)	480
Charge-offs	(2,532		)	(355	)	(287	)	(591	)	(198	)	(1,101	)
Recoveries	4,653			44		2,709		723		175		1,002
Balance at end of period	$	132,386		13,666		66,809		37,031		8,629		6,251



	Six Months ended June 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	1,047			182		205		1,644		(1,018	)	34
Charge-offs	(2,598		)	(58	)	(748	)	(1,369	)	(153	)	(270	)
Recoveries	2,317			46		1,441		317		154		359
Balance at end of period	$	130,519		14,850		68,697		31,483		8,946		6,543

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



	June 30, 2016
(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	$	4,365	215	877	2,761	118	394
Collectively evaluated for impairment	128,021		13,451	65,932	34,270	8,511	5,857
Total allowance for loan and lease losses	$	132,386	13,666	66,809	37,031	8,629	6,251
Loans receivable
Individually evaluated for impairment	$	130,803	18,248	75,739	27,133	6,442	3,241
Collectively evaluated for impairment	5,247,814		654,647	2,697,559	1,231,094	425,217	239,297
Total loans receivable	$	5,378,617	672,895	2,773,298	1,258,227	431,659	242,538



	December 31, 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	$	8,124	782	1,629	5,277	64	372
Collectively evaluated for impairment	121,573		13,645	66,248	27,248	8,934	5,498
Total allowance for loan and lease losses	$	129,697	14,427	67,877	32,525	8,998	5,870
Loans receivable
Individually evaluated for impairment	$	140,773	20,767	85,845	23,874	6,493	3,794
Collectively evaluated for impairment	4,937,908		668,145	2,548,108	1,075,690	414,408	231,557
Total loans receivable	$	5,078,681	688,912	2,633,953	1,099,564	420,901	235,351

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 disclose information related to impaired loans by portfolio segment:



	At or for the Three or Six Months ended June 30, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	23,744	3,176	10,068	9,188	156	1,156
Unpaid principal balance	23,991		3,243	10,084	9,307	165	1,192
Specific valuation allowance	4,365		215	877	2,761	118	394
Average balance - three months	27,688		5,338	10,073	10,669	306	1,302
Average balance - six months	30,020		6,310	10,900	11,087	238	1,485
Loans without a specific valuation allowance
Recorded balance	$	107,059	15,072	65,671	17,945	6,286	2,085
Unpaid principal balance	131,848		16,617	82,908	22,932	7,221	2,170
Average balance - three months	108,147		14,306	68,717	16,842	6,194	2,088
Average balance - six months	107,461		13,709	70,241	15,212	6,259	2,040
Total
Recorded balance	$	130,803	18,248	75,739	27,133	6,442	3,241
Unpaid principal balance	155,839		19,860	92,992	32,239	7,386	3,362
Specific valuation allowance	4,365		215	877	2,761	118	394
Average balance - three months	135,835		19,644	78,790	27,511	6,500	3,390
Average balance - six months	137,481		20,019	81,141	26,299	6,497	3,525



	At or for the Year ended December 31, 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	$	34,683	8,253	12,554	11,923	102	1,851
Unpaid principal balance	36,157		9,198	12,581	12,335	109	1,934
Specific valuation allowance	8,124		782	1,629	5,277	64	372
Average balance	36,176		6,393	15,827	11,768	426	1,762
Loans without a specific valuation allowance
Recorded balance	$	106,090	12,514	73,291	11,951	6,391	1,943
Unpaid principal balance	132,718		13,969	94,028	15,539	7,153	2,029
Average balance	116,356		13,615	78,684	15,479	6,350	2,228
Total
Recorded balance	$	140,773	20,767	85,845	23,874	6,493	3,794
Unpaid principal balance	168,875		23,167	106,609	27,874	7,262	3,963
Specific valuation allowance	8,124		782	1,629	5,277	64	372
Average balance	152,532		20,008	94,511	27,247	6,776	3,990

Interest income recognized on impaired loans for the six months ended June 30, 2016 and 2015 was not significant.

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



	June 30, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	18,253	453	7,515	6,709	2,872	704
Accruing loans 60-89 days past due	5,226		1,183	885	1,910	385	863
Accruing loans 90 days or more past due	6,194		772	1,924	3,115	382	1
Non-accrual loans	45,017		4,409	23,147	11,308	5,572	581
Total past due and non-accrual loans	74,690		6,817	33,471	23,042	9,211	2,149
Current loans receivable	5,303,927		666,078	2,739,827	1,235,185	422,448	240,389
Total loans receivable	$	5,378,617	672,895	2,773,298	1,258,227	431,659	242,538



	December 31, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	15,801	4,895	4,393	3,564	1,601	1,348
Accruing loans 60-89 days past due	3,612		961	1,841	286	280	244
Accruing loans 90 days or more past due	2,131		—	231	1,820	15	65
Non-accrual loans	51,133		8,073	28,819	7,691	6,022	528
Total past due and non-accrual loans	72,677		13,929	35,284	13,361	7,918	2,185
Current loans receivable	5,006,004		674,983	2,598,669	1,086,203	412,983	233,166
Total loans receivable	$	5,078,681	688,912	2,633,953	1,099,564	420,901	235,351

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 June 30, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	19		—	5	13	1	—
Pre-modification recorded balance	$	4,912	—	2,147	2,704	61	—
Post-modification recorded balance	$	4,936	—	2,147	2,728	61	—
TDRs that subsequently defaulted
Number of loans	11		1	1	3	—	6
Recorded balance	$	2,933	1,918	570	316	—	129



	Three Months ended June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	15		—	7	5	—	3
Pre-modification recorded balance	$	4,038	—	2,828	1,006	—	204
Post-modification recorded balance	$	3,744	—	2,748	792	—	204
TDRs that subsequently defaulted
Number of loans	2		—	—	1	—	1
Recorded balance	$	101	—	—	99	—	2



	Six Months ended June 30, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	22		—	6	14	2	—
Pre-modification recorded balance	$	13,871	—	2,203	11,459	209	—
Post-modification recorded balance	$	13,895	—	2,203	11,483	209	—
TDRs that subsequently defaulted
Number of loans	11		1	1	3	—	6
Recorded balance	$	2,933	1,918	570	316	—	129



	Six Months ended June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	20		—	9	8	—	3
Pre-modification recorded balance	$	7,123	—	5,010	1,909	—	204
Post-modification recorded balance	$	6,829	—	4,930	1,695	—	204
TDRs that subsequently defaulted
Number of loans	4		—	—	1	2	1
Recorded balance	$	217	—	—	99	116	2

The modifications for the TDRs that occurred during the six months ended June 30, 2016 and 2015 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 $3,649,000 and $5,494,000 for the six months ended June 30, 2016 and 2015, 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 residential real estate and commercial real estate for the six months ended June 30, 2016 and 2015, respectively. At June 30, 2016 and December 31, 2015, the Company had $4,044,000 and $3,253,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At June 30, 2016 and December 31, 2015, the Company had $4,173,000 and $1,496,000, respectively, of OREO secured by residential real estate properties.