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 Nine Months ended			At or for the Year ended
(Dollars in thousands)	September 30, 2016			December 31, 2015
Residential real estate loans	$	696,817		688,912
Commercial loans
Real estate	2,919,415			2,633,953
Other commercial	1,303,241			1,099,564
Total	4,222,656			3,733,517
Consumer and other loans
Home equity	435,935			420,901
Other consumer	240,554			235,351
Total	676,489			656,252
Loans receivable ¹	5,595,962			5,078,681
Allowance for loan and lease losses	(132,534		)	(129,697	)
Loans receivable, net	$	5,463,428		4,948,984
Weighted-average interest rate on loans (tax-equivalent)	4.79		%	4.84	%

__________


¹	Includes net deferred fees, costs, premiums and discounts of $14,765,000 and $15,529,000 at September 30, 2016 and December 31, 2015, respectively.

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



	Three Months ended September 30, 2016
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	132,386		13,666		66,809		37,031		8,629		6,251
Provision for loan losses	626			108		—		(1,118	)	561		1,075
Charge-offs	(2,800		)	(11	)	(55	)	(131	)	(693	)	(1,910	)
Recoveries	2,322			148		490		797		77		810
Balance at end of period	$	132,534		13,911		67,244		36,579		8,574		6,226



	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



	Nine Months ended September 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	1,194			(342	)	(3,490	)	3,256		215		1,555
Charge-offs	(5,332		)	(366	)	(342	)	(722	)	(891	)	(3,011	)
Recoveries	6,975			192		3,199		1,520		252		1,812
Balance at end of period	$	132,534		13,911		67,244		36,579		8,574		6,226



	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

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



	September 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	$	5,966	880	1,375	3,120	196	395
Collectively evaluated for impairment	126,568		13,031	65,869	33,459	8,378	5,831
Total allowance for loan and lease losses	$	132,534	13,911	67,244	36,579	8,574	6,226
Loans receivable
Individually evaluated for impairment	$	135,153	17,336	84,765	24,036	5,876	3,140
Collectively evaluated for impairment	5,460,809		679,481	2,834,650	1,279,205	430,059	237,414
Total loans receivable	$	5,595,962	696,817	2,919,415	1,303,241	435,935	240,554



	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 Nine Months ended September 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	$	21,539	3,024	10,378	7,125	234	778
Unpaid principal balance	21,812		3,086	10,379	7,280	244	823
Specific valuation allowance	5,966		880	1,375	3,120	196	395
Average balance - three months	22,641		3,100	10,223	8,156	195	967
Average balance - nine months	27,899		5,489	10,769	10,096	237	1,308
Loans without a specific valuation allowance
Recorded balance	$	113,614	14,312	74,387	16,911	5,642	2,362
Unpaid principal balance	136,316		15,857	91,472	19,412	7,125	2,450
Average balance - three months	110,336		14,692	70,029	17,428	5,964	2,223
Average balance - nine months	108,999		13,859	71,278	15,637	6,105	2,120
Total
Recorded balance	$	135,153	17,336	84,765	24,036	5,876	3,140
Unpaid principal balance	158,128		18,943	101,851	26,692	7,369	3,273
Specific valuation allowance	5,966		880	1,375	3,120	196	395
Average balance - three months	132,977		17,792	80,252	25,584	6,159	3,190
Average balance - nine months	136,898		19,348	82,047	25,733	6,342	3,428



	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 nine months ended September 30, 2016 and 2015 was not significant.

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



	September 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	$	17,462	259	10,471	4,284	1,545	903
Accruing loans 60-89 days past due	9,922		1,086	4,631	2,493	1,471	241
Accruing loans 90 days or more past due	3,299		222	638	2,049	376	14
Non-accrual loans	52,280		4,538	32,411	9,810	5,016	505
Total past due and non-accrual loans	82,963		6,105	48,151	18,636	8,408	1,663
Current loans receivable	5,512,999		690,712	2,871,264	1,284,605	427,527	238,891
Total loans receivable	$	5,595,962	696,817	2,919,415	1,303,241	435,935	240,554



	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 September 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	5		—	4	1	—	—
Pre-modification recorded balance	$	7,781	—	7,014	767	—	—
Post-modification recorded balance	$	7,718	—	6,990	728	—	—
TDRs that subsequently defaulted
Number of loans	1		—	—	1	—	—
Recorded balance	$	5	—	—	5	—	—



	Three Months ended September 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	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
TDRs that subsequently defaulted
Number of loans	3		1	—	2	—	—
Recorded balance	$	2,287	1,947	—	340	—	—



	Nine Months ended September 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	27		—	10	15	2	—
Pre-modification recorded balance	$	21,652	—	9,217	12,226	209	—
Post-modification recorded balance	$	21,613	—	9,193	12,211	209	—
TDRs that subsequently defaulted
Number of loans	9		—	1	2	—	6
Recorded balance	$	704	—	570	5	—	129



	Nine Months ended September 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	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
TDRs that subsequently defaulted
Number of loans	7		1	1	3	1	1
Recorded balance	$	2,542	1,947	78	440	75	2

The modifications for the TDRs that occurred during the nine months ended September 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 $4,967,000 and $7,677,000 for the nine months ended September 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 nine months ended September 30, 2016 and 2015, respectively. At September 30, 2016 and December 31, 2015, the Company had $1,997,000 and $3,253,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At September 30, 2016 and December 31, 2015, the Company had $2,389,000 and $1,496,000, respectively, of OREO secured by residential real estate properties.