On January 1, 2020, the Company adopted FASB ASU 2016-13, Financial Instruments - Credit Losses, which significantly changed the loan and allowance for credit loss accounting disclosures. The following loan and allowance for credit loss accounting disclosures are presented in accordance with ASC Topic 326, whereas prior periods are presented in accordance with the incurred loss model as disclosed in the Company’s 2019 Annual Report on Form 10-K.


(Dollars in thousands)	March 31, 2020		December 31, 2019
Residential real estate	$	957,830	926,388
Commercial real estate	5,928,303		5,579,307
Other commercial	2,239,878		2,094,254
Home equity	652,942		617,201
Other consumer	309,253		295,660
Loans receivable	10,088,206		9,512,810
Allowance for credit losses	(150,190)		(124,490)
Loans receivable, net	$	9,938,016	9,388,320
Net deferred origination (fees) costs included in loans receivable	$	(6,925)	(6,964)
Net purchase accounting (discounts) premiums included in loans receivable	$	(19,864)	(21,574)
Accrued interest receivable on loans	$	43,689	40,962

Substantially all of the Company’s loans receivable are with borrowers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of borrowers’ ability to service their obligations is dependent upon the economic performance in the Company’s market areas.


	Three Months ended March 31, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	124,490	10,111	69,496	36,129	4,937	3,817
Impact of adopting CECL	3,720		3,584	10,533	(13,759)	3,400	(38)
Acquisitions	49		—	49	—	—	—
Credit loss expense (reversal)	22,744		(4,369)	(9,433)	34,133	(508)	2,921
Charge-offs	(2,567)		(20)	(30)	(785)	(1)	(1,731)
Recoveries	1,754		9	470	454	106	715
Balance at end of period	$	150,190	9,315	71,085	56,172	7,934	5,684


	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
Credit loss expense (reversal)	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

As a result of the adoption of the CECL accounting standard, the Company adjusted the January 1, 2020 ACL balances within each loan segment to reflect the changes from the incurred loss model to the current expected credit loss model which resulted in increases and decreases in each loan segment based on, among other factors, quantitative and qualitative assumptions and economic forecasts to estimate the credit loss expense over the expected life of the loans. During the three months ended March 31, 2020, primarily as a result of the COVID-19 pandemic, there was a significant increase in the overall ACL and increases and decreases within the loan segments. In addition, the acquisition of SBAZ resulted in a $4,794,000 increase in the ACL due to the credit loss expense recorded subsequent to the acquisition date. The COVID-19 pandemic significantly adjusted the economic forecasts used in the ACL model including a significant increase in national unemployment rates and a significant decrease in the gross domestic product (“GDP”). The changes in the economic forecasts necessitated a change in weighting of the historical loss factors and the combined result was a significant increase in losses expected in the other commercial segment while other loan segments remained stable or experienced decreases in expected credit losses.

There were no significant changes in charge-offs during the three months ended March 31, 2020 compared to the same period in the prior year. Nonetheless, the most notable change was in the other consumer loan segment which was primarily driven by deposit overdraft charge-offs which typically experience high charge-off rates and the amounts were comparable to historical trends. During the three months ended March 31, 2020, there have been no significant changes to the types of collateral securing collateral-dependent loans.

During the period ended March 31, 2020, the Company acquired loans through the SBAZ acquisition. Such loans were evaluated at acquisition date and it was determined there were PCD loans totaling $3,401,000 with an ACL of $49,000. There was also a discount associated with such loans of $13,000, which was attributable to changes in interest rates and other factors such as liquidity as of acquisition date.


	March 31, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	31,688	8,419	9,516	7,791	3,808	2,154
Accruing loans 60-89 days past due	9,687		45	3,311	3,727	1,877	727
Accruing loans 90 days or more past due	6,624		701	3,700	1,738	140	345
Non-accrual loans with no ACL	25,219		4,126	11,328	6,395	2,953	417
Non-accrual loans with ACL	2,787		307	2,137	257	50	36
Total past due and non-accrual loans	76,005		13,598	29,992	19,908	8,828	3,679
Current loans receivable	10,012,201		944,232	5,898,311	2,219,970	644,114	305,574
Total loans receivable	$	10,088,206	957,830	5,928,303	2,239,878	652,942	309,253


	December 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	$	15,944	3,403	4,946	4,685	1,040	1,870
Accruing loans 60-89 days past due	7,248		749	2,317	1,190	1,902	1,090
Accruing loans 90 days or more past due	1,412		753	64	143	—	452
Non-accrual loans	30,883		4,715	15,650	6,592	3,266	660
Total past due and non-accrual loans	55,487		9,620	22,977	12,610	6,208	4,072
Current loans receivable	9,457,323		916,768	5,556,330	2,081,644	610,993	291,588
Total loans receivable	$	9,512,810	926,388	5,579,307	2,094,254	617,201	295,660

A restructured loan is considered a TDR 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 the loans modified as TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted:


	Three Months ended March 31, 2020
(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		—	3	2	—	—
Pre-modification recorded balance	$	7,268	—	6,857	411	—	—
Post-modification recorded balance	$	7,268	—	6,857	411	—	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	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	$	—	—	—	—	—	—

In addition to the loans designated as TDRs during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $568,000 and $1,940,000 for the three months ended March 31, 2020 and 2019, 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, 2020 and 2019. At March 31, 2020 and December 31, 2019, the Company had $1,364,000 and $1,744,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. At March 31, 2020 and December 31, 2019, the Company had $1,554,000 and $1,504,000, respectively, of OREO secured by residential real estate properties.

The Company categorizes commercial real estate and other commercial loans into risk categories based on relevant information about the ability of borrowers to service their obligations. The following tables present the amortized cost in commercial real estate and other commercial loans based on the Company’s internal risk rating. The date of a modification, renewal or extension of a loan is considered for the year of origination if the terms of the loan are as favorable to the Company as the terms are for a comparable loan to other borrowers with similar credit risk.


	March 31, 2020
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2020 (year-to-date)	$	339,688	338,459	—	1,229	—
2019	1,177,694		1,170,434	—	7,260	—
2018	1,082,524		1,048,933	—	33,591	—
2017	823,352		801,190	3,421	18,741	—
2016	560,146		542,535	—	17,611	—
Prior	1,782,598		1,732,836	—	49,352	410
Revolving loans	162,301		154,117	—	8,182	2

Total	$	5,928,303	5,788,504	3,421	135,966	412
Other commercial loans
Term loans by origination year
2020 (year-to-date)	$	142,965	139,929	—	3,036	—
2019	386,443		380,272	—	6,171	—
2018	350,710		345,567	—	5,142	1
2017	340,398		334,937	—	5,020	441
2016	217,527		214,790	—	2,588	149
Prior	220,822		213,739	—	6,513	570
Revolving loans	581,013		567,842	—	13,060	111

Total	$	2,239,878	2,197,076	—	41,530	1,272

For residential real estate, home equity and other consumer loan segments, the Company evaluates credit quality primarily on the aging status of the loan. The following tables present the amortized cost in residential real estate, home equity and other consumer loans based on payment performance:


	March 31, 2020
(Dollars in thousands)	Total		Performing	30-89 Days Past Due	Non-Accrual and 90 Days or More Past Due
Residential real estate loans
Term loans by origination year
2020 (year-to-date)	$	30,716	30,716	—	—
2019	268,951		266,516	2,250	185
2018	186,895		183,955	2,521	419
2017	126,134		125,673	461	—
2016	83,637		82,608	244	785
Prior	258,882		252,149	2,988	3,745
Revolving loans	2,615		2,615	—	—

Total	$	957,830	944,232	8,464	5,134
Home equity loans
Term loans by origination year
2020 (year-to-date)	$	—	—	—	—
2019	2,140		2,102	38	—
2018	2,643		2,643	—	—
2017	2,706		2,706	—	—
2016	1,747		1,747	—	—
Prior	21,116		19,696	696	724
Revolving loans	622,590		615,220	4,951	2,419

Total	$	652,942	644,114	5,685	3,143
Other consumer loans
Term loans by origination year
2020 (year-to-date)	$	33,081	33,077	4	—
2019	106,151		105,790	317	44
2018	69,022		68,594	350	78
2017	30,799		30,261	472	66
2016	16,696		16,217	231	248
Prior	30,219		28,412	1,452	355
Revolving loans	23,285		23,223	55	7

Total	$	309,253	305,574	2,881	798

The implementation of FASB ASU 2016-13, Financial Instruments - Credit Losses significantly changed disclosures related to loans and, as a result, certain disclosures are no longer required. The following tables represent disclosures for the prior period that are no longer required as of January 1, 2020, but are included in this Form 10-Q since the Company is required to disclose comparative information.


	December 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans receivable
Individually evaluated for impairment	$	94,504	7,804	58,609	21,475	3,745	2,871
Collectively evaluated for impairment	9,418,306		918,584	5,520,698	2,072,779	613,456	292,789
Total loans receivable	$	9,512,810	926,388	5,579,307	2,094,254	617,201	295,660
Allowance for loan and lease losses
Individually evaluated for impairment	$	95	—	73	10	—	12
Collectively evaluated for impairment	124,395		10,111	69,423	36,119	4,937	3,805
Total allowance for loan and lease losses	$	124,490	10,111	69,496	36,129	4,937	3,817


	At or for the Year ended December 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	$	5,388	—	5,343	10	—	35
Unpaid principal balance	5,388		—	5,343	10	—	35
Specific valuation allowance	95		—	73	10	—	12
Average balance	10,378		409	6,341	3,490	24	114
Loans without a specific valuation allowance
Recorded balance	89,116		7,804	53,266	21,465	3,745	2,836
Unpaid principal balance	99,355		9,220	57,735	24,758	4,494	3,148
Average balance	93,338		9,879	59,107	18,079	3,486	2,787
Total
Recorded balance	$	94,504	7,804	58,609	21,475	3,745	2,871
Unpaid principal balance	104,743		9,220	63,078	24,768	4,494	3,183
Specific valuation allowance	95		—	73	10	—	12
Average balance	103,716		10,288	65,448	21,569	3,510	2,901