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 Three Months ended			At or for the Year ended
(Dollars in thousands)	March 31, 2019			December 31, 2018
Residential real estate loans	$	884,732		887,742
Commercial loans
Real estate	4,686,082			4,657,561
Other commercial	1,909,452			1,911,171
Total	6,595,534			6,568,732
Consumer and other loans
Home equity	562,381			544,688
Other consumer	283,423			286,387
Total	845,804			831,075
Loans receivable	8,326,070			8,287,549
Allowance for loan and lease losses	(129,786		)	(131,239	)
Loans receivable, net	$	8,196,284		8,156,310
Net deferred origination (fees) costs included in loans receivable	$	(5,022	)	(5,685	)
Net purchase accounting (discounts) premiums included in loans receivable	$	(23,681	)	(25,172	)
Weighted-average interest rate on loans (tax-equivalent)	5.18		%	4.97	%

Allowance for Loan and Lease Losses

The ALLL is a valuation allowance for probable incurred credit losses. The following tables summarize the activity in the ALLL by loan class:



	Three Months ended March 31, 2019
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	131,239		10,631		72,448		38,160		5,811		4,189
Provision for loan losses	57			278		(148	)	(915	)	64		778
Charge-offs	(3,341		)	(292	)	(283	)	(840	)	(8	)	(1,918	)
Recoveries	1,831			94		311		444		13		969
Balance at end of period	$	129,786		10,711		72,328		36,849		5,880		4,018



	Three Months ended March 31, 2018
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,568		10,798		68,515		39,303		6,204		4,748
Provision for loan losses	795			(177	)	245		(3	)	(202	)	932
Charge-offs	(5,007		)	(3	)	(1,033	)	(1,788	)	(12	)	(2,171	)
Recoveries	2,252			16		615		596		50		975
Balance at end of period	$	127,608		10,634		68,342		38,108		6,040		4,484

The following tables disclose the recorded investment in loans and the balance in the ALLL by loan class:



	March 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans receivable
Individually evaluated for impairment	$	104,411	10,646	65,104	22,954	3,057	2,650
Collectively evaluated for impairment	8,221,659		874,086	4,620,978	1,886,498	559,324	280,773
Total loans receivable	$	8,326,070	884,732	4,686,082	1,909,452	562,381	283,423
ALLL
Individually evaluated for impairment	$	702	1	57	642	—	2
Collectively evaluated for impairment	129,084		10,710	72,271	36,207	5,880	4,016
Total ALLL	$	129,786	10,711	72,328	36,849	5,880	4,018



	December 31, 2018
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans receivable
Individually evaluated for impairment	$	108,788	12,685	68,837	20,975	3,497	2,794
Collectively evaluated for impairment	8,178,761		875,057	4,588,724	1,890,196	541,191	283,593
Total loans receivable	$	8,287,549	887,742	4,657,561	1,911,171	544,688	286,387
ALLL
Individually evaluated for impairment	$	3,223	83	568	2,313	39	220
Collectively evaluated for impairment	128,016		10,548	71,880	35,847	5,772	3,969
Total ALLL	$	131,239	10,631	72,448	38,160	5,811	4,189

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.

Aging Analysis

The following tables present an aging analysis of the recorded investment in loans by loan class:



	March 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	28,938	5,211	14,345	5,620	2,273	1,489
Accruing loans 60-89 days past due	7,956		768	3,564	1,839	1,082	703
Accruing loans 90 days or more past due	2,451		998	234	998	115	106
Non-accrual loans	40,269		6,219	24,096	6,766	2,454	734
Total past due and non-accrual loans	79,614		13,196	42,239	15,223	5,924	3,032
Current loans receivable	8,246,456		871,536	4,643,843	1,894,229	556,457	280,391
Total loans receivable	$	8,326,070	884,732	4,686,082	1,909,452	562,381	283,423



	December 31, 2018
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	24,312	5,251	9,477	4,282	3,213	2,089
Accruing loans 60-89 days past due	9,255		860	3,231	3,838	735	591
Accruing loans 90 days or more past due	2,018		788	—	492	428	310
Non-accrual loans	47,252		8,021	27,264	8,619	2,575	773
Total past due and non-accrual loans	82,837		14,920	39,972	17,231	6,951	3,763
Current loans receivable	8,204,712		872,822	4,617,589	1,893,940	537,737	282,624
Total loans receivable	$	8,287,549	887,742	4,657,561	1,911,171	544,688	286,387

Impaired Loans

Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. The following tables disclose information related to impaired loans by loan class:



	At or for the Three Months ended March 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	16,061	44	6,004	10,004	—	9
Unpaid principal balance	16,061		44	6,004	10,004	—	9
Specific valuation allowance	702		1	57	642	—	2
Average balance	17,629		1,001	7,674	8,636	60	258
Loans without a specific valuation allowance
Recorded balance	88,350		10,602	59,100	12,950	3,057	2,641
Unpaid principal balance	105,100		12,009	69,991	16,516	3,699	2,885
Average balance	88,970		10,665	59,296	13,328	3,217	2,464
Total
Recorded balance	104,411		10,646	65,104	22,954	3,057	2,650
Unpaid principal balance	121,161		12,053	75,995	26,520	3,699	2,894
Specific valuation allowance	702		1	57	642	—	2
Average balance	106,599		11,666	66,970	21,964	3,277	2,722



	At or for the Year ended December 31, 2018
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	19,197	1,957	9,345	7,268	120	507
Unpaid principal balance	19,491		2,220	9,345	7,268	120	538
Specific valuation allowance	3,223		83	568	2,313	39	220
Average balance	19,519		2,686	8,498	7,081	82	1,172
Loans without a specific valuation allowance
Recorded balance	89,591		10,728	59,492	13,707	3,377	2,287
Unpaid principal balance	107,486		11,989	71,300	17,689	3,986	2,522
Average balance	106,747		10,269	73,889	17,376	3,465	1,748
Total
Recorded balance	108,788		12,685	68,837	20,975	3,497	2,794
Unpaid principal balance	126,977		14,209	80,645	24,957	4,106	3,060
Specific valuation allowance	3,223		83	568	2,313	39	220
Average balance	126,266		12,955	82,387	24,457	3,547	2,920

Interest income recognized on impaired loans for the three months ended March 31, 2019 and 2018 was not significant.

Restructured Loans

A restructured loan is considered a troubled debt restructuring if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. 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 March 31, 2019
(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	4		—	1	2	1	—
Pre-modification recorded balance	$	1,705	—	1,035	567	103	—
Post-modification recorded balance	$	1,705	—	1,035	567	103	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—



	Three Months ended March 31, 2018
(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	12		2	4	6	—	—
Pre-modification recorded balance	$	15,997	439	8,278	7,280	—	—
Post-modification recorded balance	$	15,997	439	8,278	7,280	—	—
TDRs that subsequently defaulted
Number of loans	1		1	—	—	—	—
Recorded balance	$	334	334	—	—	—	—

The modifications for the TDRs that occurred during the three months ended March 31, 2019 and 2018 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 $1,940,000 and $431,000 for the three months ended March 31, 2019 and 2018, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate for the three months ended March 31, 2019 and 2018. At March 31, 2019 and December 31, 2018, the Company had $1,134,000 and $350,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At March 31, 2019 and December 31, 2018, the Company had $2,076,000 and $698,000, respectively, of OREO secured by residential real estate properties.