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)	June 30, 2020		December 31, 2019
Residential real estate	$	903,198	926,388
Commercial real estate	6,047,692		5,579,307
Other commercial	3,547,249		2,094,254
Home equity	654,392		617,201
Other consumer	300,847		295,660
Loans receivable	11,453,378		9,512,810
Allowance for credit losses	(162,509)		(124,490)
Loans receivable, net	$	11,290,869	9,388,320
Net deferred origination (fees) costs included in loans receivable	$	(41,811)	(6,964)
Net purchase accounting (discounts) premiums included in loans receivable	$	(18,954)	(21,574)
Accrued interest receivable on loans	$	56,415	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 June 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	150,190	9,315	70,848	56,409	7,934	5,684


Credit loss expense (reversal)	13,552		662	18,309	(6,974)	2,174	(619)
Charge-offs	(2,668)		(1)	(150)	(1,088)	(193)	(1,236)
Recoveries	1,435		10	97	491	47	790
Balance at end of period	$	162,509	9,986	89,104	48,838	9,962	4,619


	Three Months ended June 30, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	129,786	10,711	72,328	36,849	5,880	4,018
Credit loss expense (reversal)	—		(105)	(196)	(829)	(73)	1,203
Charge-offs	(2,859)		(49)	(126)	(358)	(20)	(2,306)
Recoveries	2,127		138	441	597	14	937
Balance at end of period	$	129,054	10,695	72,447	36,259	5,801	3,852


	Six Months ended June 30, 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)	36,296		(3,707)	8,876	27,159	1,666	2,302
Charge-offs	(5,235)		(21)	(180)	(1,873)	(194)	(2,967)
Recoveries	3,189		19	330	1,182	153	1,505
Balance at end of period	$	162,509	9,986	89,104	48,838	9,962	4,619


	Six Months ended June 30, 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		173	(344)	(1,744)	(9)	1,981
Charge-offs	(6,200)		(341)	(409)	(1,198)	(28)	(4,224)
Recoveries	3,958		232	752	1,041	27	1,906
Balance at end of period	$	129,054	10,695	72,447	36,259	5,801	3,852

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 the economic forecast to estimate the credit loss expense over the expected life of the loans. During the six months ended June 30, 2020, primarily as a result of the COVID-19 pandemic, there was a significant increase in the overall ACL and increases and decreases within certain 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 forecast used in the ACL model including a significant increase in national and regional unemployment rates and a significant decrease in the gross domestic product (“GDP”). The changes in the economic forecast 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 six months ended June 30, 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 six months ended June 30, 2020, there have been no significant changes to the types of collateral securing collateral-dependent loans.

During the six month period ended June 30, 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.


	June 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	11,607	—	2,737	4,904	2,437	1,529
Accruing loans 60-89 days past due	13,618		231	8,117	3,905	1,192	173
Accruing loans 90 days or more past due	6,071		206	3,110	2,519	98	138
Non-accrual loans with no ACL	30,578		3,774	17,767	5,676	2,971	390
Non-accrual loans with ACL	4,579		469	1,915	2,037	115	43
Total past due and non-accrual loans	66,453		4,680	33,646	19,041	6,813	2,273
Current loans receivable	11,386,925		898,518	6,014,046	3,528,208	647,579	298,574
Total loans receivable	$	11,453,378	903,198	6,047,692	3,547,249	654,392	300,847


	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 loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by collateral type:


	June 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	4,631	—	109	4,522	—	—
Residential real estate	4,937		1,942	891	117	1,932	55
Other real estate	14,310		32	13,415	825	22	16
Other	163		—	—	28	—	135
Total	$	24,041	1,974	14,415	5,492	1,954	206

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 June 30, 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	8		1	3	3	1	—
Pre-modification recorded balance	$	1,672	210	1,263	160	39	—
Post-modification recorded balance	$	1,672	210	1,263	160	39	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	Three Months ended June 30, 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	—	—	—	3
Pre-modification recorded balance	$	388	117	—	—	—	271
Post-modification recorded balance	$	374	123	—	—	—	251
TDRs that subsequently defaulted
Number of loans	1		—	—	—	—	1
Recorded balance	$	305	—	—	—	—	305


	Six Months ended June 30, 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	13		1	6	5	1	—
Pre-modification recorded balance	$	8,940	210	8,120	571	39	—
Post-modification recorded balance	$	8,940	210	8,120	571	39	—
TDRs that subsequently defaulted
Number of loans	1		—	1	—	—	—
Recorded balance	$	106	—	106	—	—	—


	Six Months ended June 30, 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	8		1	1	2	1	3
Pre-modification recorded balance	$	2,093	117	1,035	567	103	271
Post-modification recorded balance	$	2,079	123	1,035	567	103	251
TDRs that subsequently defaulted
Number of loans	1		—	—	—	—	1
Recorded balance	$	305	—	—	—	—	305

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 $904,000 and $2,528,000 for the six months ended June 30, 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 six months ended June 30, 2020 and 2019. At June 30, 2020 and December 31, 2019, the Company had $1,001,000 and $1,744,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. At June 30, 2020 and December 31, 2019, the Company had $1,896,000 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.


	June 30, 2020
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2020 (year-to-date)	$	659,384	656,332	—	3,052	—
2019	1,185,582		1,176,792	—	8,790	—
2018	1,037,111		1,003,201	—	33,910	—
2017	809,549		786,960	—	22,589	—
2016	553,420		534,881	—	18,539	—
Prior	1,654,405		1,622,710	66	31,256	373
Revolving loans	148,241		146,605	—	1,636	—

Total	$	6,047,692	5,927,481	66	119,772	373
Other commercial loans
Term loans by origination year
2020 (year-to-date)	$	1,646,307	1,641,537	—	4,770	—
2019	359,481		353,800	—	5,679	2
2018	311,638		305,819	—	5,818	1
2017	312,198		306,956	—	4,747	495
2016	201,794		199,013	—	2,582	199
Prior	253,062		243,393	2,767	5,738	1,164
Revolving loans	462,769		450,404	849	10,541	975

Total	$	3,547,249	3,500,922	3,616	39,875	2,836

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:


	June 30, 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)	$	81,889	81,789	100	—
2019	256,534		256,352	—	182
2018	156,524		156,280	—	244
2017	107,758		107,652	—	106
2016	73,516		72,483	—	1,033
Prior	224,321		221,306	131	2,884
Revolving loans	2,656		2,656	—	—

Total	$	903,198	898,518	231	4,449
Home equity loans
Term loans by origination year
2020 (year-to-date)	$	—	—	—	—
2019	2,039		2,001	—	38
2018	2,202		2,202	—	—
2017	2,015		2,015	—	—
2016	1,571		1,571	—	—
Prior	18,947		17,864	381	702
Revolving loans	627,618		621,926	3,248	2,444

Total	$	654,392	647,579	3,629	3,184
Other consumer loans
Term loans by origination year
2020 (year-to-date)	$	62,392	62,371	21	—
2019	89,495		89,300	154	41
2018	59,295		59,099	140	56
2017	26,418		25,848	511	59
2016	14,793		14,713	3	77
Prior	26,035		24,864	839	332
Revolving loans	22,419		22,379	34	6

Total	$	300,847	298,574	1,702	571

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