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.


(Dollars in thousands)	September 30, 2021		December 31, 2020
Residential real estate	$	781,538	802,508
Commercial real estate	6,912,569		6,315,895
Other commercial	2,598,616		3,054,817
Home equity	660,920		636,405
Other consumer	340,248		313,071
Loans receivable	11,293,891		11,122,696
Allowance for credit losses	(153,609)		(158,243)
Loans receivable, net	$	11,140,282	10,964,453
Net deferred origination (fees) costs included in loans receivable	$	(26,325)	(26,709)
Net purchase accounting (discounts) premiums included in loans receivable	$	(12,458)	(17,091)
Accrued interest receivable on loans	$	50,229	53,538

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 September 30, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	151,448	10,143	96,597	31,983	7,837	4,888


Provision for credit losses	2,313		1,703	2,931	(3,321)	(124)	1,124
Charge-offs	(2,620)		—	(162)	(677)	—	(1,781)
Recoveries	2,468		13	672	860	152	771
Balance at end of period	$	153,609	11,859	100,038	28,845	7,865	5,002


	Three Months ended September 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	162,509	9,986	89,104	48,838	9,962	4,619


Provision for credit losses	2,869		(216)	5,208	1,199	(2,526)	(796)
Charge-offs	(2,630)		—	(445)	(1,598)	(99)	(488)
Recoveries	1,804		35	530	314	93	832
Balance at end of period	$	164,552	9,805	94,397	48,753	7,430	4,167


	Nine Months ended September 30, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	158,243	9,604	86,999	49,133	8,182	4,325


Provision for credit losses	(2,921)		2,005	11,663	(18,905)	(491)	2,807
Charge-offs	(8,566)		(38)	(203)	(3,790)	(45)	(4,490)
Recoveries	6,853		288	1,579	2,407	219	2,360
Balance at end of period	$	153,609	11,859	100,038	28,845	7,865	5,002


	Nine Months ended September 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	—		—
Provision for credit losses	39,165		(3,923)	14,084	28,358	(860)	1,506
Charge-offs	(7,865)		(21)	(625)	(3,471)	(293)	(3,455)
Recoveries	4,993		54	860	1,496	246	2,337
Balance at end of period	$	164,552	9,805	94,397	48,753	7,430	4,167

During the nine months ended September 30, 2021, the ACL decreased primarily as a result of an improvement in the quantitative factors including the economic forecasts along with adjustments to qualitative factors.

The sizeable charge-offs in the other consumer loan segment is driven by deposit overdraft charge-offs which typically experience high charge-off rates and the amounts were comparable to historical trends. The other segments experience routine charge-offs and recoveries, with occasional large credit relationships charge-offs and recoveries that cause fluctuations from prior periods. During the nine months ended September 30, 2021, there have been no significant changes to the types of collateral securing collateral-dependent loans.


	September 30, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	9,541	—	2,662	2,071	2,438	2,370
Accruing loans 60-89 days past due	16,461		1,137	13,538	862	656	268
Accruing loans 90 days or more past due	5,172		52	2,785	2,083	98	154
Non-accrual loans with no ACL	24,989		2,173	10,144	9,753	2,406	513
Non-accrual loans with ACL	20,912		292	474	20,041	51	54
Total past due and non-accrual loans	77,075		3,654	29,603	34,810	5,649	3,359
Current loans receivable	11,216,816		777,884	6,882,966	2,563,806	655,271	336,889
Total loans receivable	$	11,293,891	781,538	6,912,569	2,598,616	660,920	340,248


	December 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	$	17,123	6,058	3,854	4,039	2,130	1,042
Accruing loans 60-89 days past due	5,598		584	2,299	809	756	1,150
Accruing loans 90 days or more past due	1,725		934	231	293	135	132
Non-accrual loans with no ACL	29,532		3,129	14,030	9,231	2,664	478
Non-accrual loans with ACL	2,432		274	1,787	278	49	44
Total past due and non-accrual loans	56,410		10,979	22,201	14,650	5,734	2,846
Current loans receivable	11,066,286		791,529	6,293,694	3,040,167	630,671	310,225
Total loans receivable	$	11,122,696	802,508	6,315,895	3,054,817	636,405	313,071

The Company had $472,000 and $628,000 of interest reversed on non-accrual loans during the nine months ended September 30, 2021 and September 30, 2020, respectively. The prior year modifications that were made under the CARES Act, along with related regulatory guidance, are included in current loan receivables.

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 collateral on the loans is a significant portion of what secures the collateral-dependent loans and significant changes to the fair value of the collateral can impact the ACL. During 2021, there were no significant change to collateral which secures the collateral-dependent loans, whether due to general deterioration or other reasons. The following table presents the amortized cost basis of collateral-dependent loans by collateral type:


	September 30, 2021
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	26,992	—	60	26,932	—	—
Residential real estate	5,558		2,412	569	126	2,276	175
Other real estate	24,255		646	20,976	2,114	181	338
Other	12,728		—	—	12,390	—	338
Total	$	69,533	3,058	21,605	41,562	2,457	851


	December 31, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	4,325	—	37	4,288	—	—
Residential real estate	7,148		3,338	1,043	198	2,513	56
Other real estate	16,127		64	14,738	1,086	200	39
Other	36,855		—	—	36,469	—	386
Total	$	64,455	3,402	15,818	42,041	2,713	481

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. There were no TDRs that occurred during the three months ended September 30 ,2021. 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, 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	6		—	5	1	—	—
Pre-modification recorded balance	$	7,482	—	6,648	834	—	—
Post-modification recorded balance	$	7,482	—	6,648	834	—	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	Nine Months ended September 30, 2021
(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		1	5	3	—	1
Pre-modification recorded balance	$	2,368	210	1,473	554	—	131
Post-modification recorded balance	$	2,368	210	1,473	554	—	131
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	Nine Months ended September 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	16		1	10	4	1	—
Pre-modification recorded balance	$	14,945	210	13,392	1,304	39	—
Post-modification recorded balance	$	14,945	210	13,392	1,304	39	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—

The modifications for the loans designated as TDRs during the nine months ended September 30, 2021 and 2020 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 loans designated as TDRs during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $1,624,000 and $2,265,000 for the nine months ended September 30, 2021 and 2020, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in consumer for the nine months ended September 30, 2021 and commercial real estate for the nine months ended September 30, 2020. At September 30, 2021 and December 31, 2020, the Company had $83,000 and $548,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. At September 30, 2021 and December 31, 2020, the Company had $88,000 and $273,000, respectively, of OREO secured by residential real estate properties.

The Company also modified loans under the CARES Act, along with related regulatory guidance, that were not classified as TDRs. In addition, the state of Montana created the Montana Loan Deferment Program for only Montana-based business that utilized Cares Act funds to provide interest payments upfront on behalf of participating borrowers. The Montana Loan Deferment Program provided modifications for customers under the CARES Act that were not classified as TDRs.

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.


	September 30, 2021
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2021 (year-to-date)	$	1,665,923	1,664,908	—	1,015	—
2020	1,310,854		1,306,097	—	4,757	—
2019	883,727		872,635	—	11,092	—
2018	748,629		695,068	—	53,561	—
2017	558,997		531,073	—	27,924	—
Prior	1,598,606		1,547,558	—	51,023	25
Revolving loans	145,833		142,781	—	3,051	1

Total	$	6,912,569	6,760,120	—	152,423	26
Other commercial loans 1
Term loans by origination year
2021 (year-to-date)	$	694,243	690,542	—	3,701	—
2020	477,065		461,088	—	15,976	1
2019	239,843		230,852	—	8,988	3
2018	184,542		178,564	—	5,977	1
2017	215,294		214,143	—	1,148	3
Prior	314,426		300,084	—	13,792	550
Revolving loans	473,203		443,561	—	29,626	16

Total	$	2,598,616	2,518,834	—	79,208	574


	December 31, 2020
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2020	$	1,496,094	1,490,947	—	5,147	—
2019	1,077,461		1,069,503	—	7,958	—
2018	914,506		874,673	—	39,833	—
2017	723,448		696,371	—	27,077	—
2016	496,275		481,392	—	14,883	—
Prior	1,488,281		1,450,596	—	37,574	111
Revolving loans	119,830		116,548	—	3,282	—

Total	$	6,315,895	6,180,030	—	135,754	111
Other commercial loans 1
Term loans by origination year
2020	$	1,366,664	1,341,316	19,564	5,784	—
2019	304,430		284,981	12,582	6,864	3
2018	241,222		234,988	—	6,233	1
2017	269,857		264,651	—	5,114	92
2016	179,225		177,164	—	2,056	5
Prior	218,306		206,431	—	11,329	546
Revolving loans	475,113		467,929	54	7,112	18

Total	$	3,054,817	2,977,460	32,200	44,492	665

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:


	September 30, 2021
(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
2021 (year-to-date)	$	256,012	256,012	—	—
2020	177,765		177,617	148	—
2019	78,061		78,061	—	—
2018	56,371		56,088	—	283
2017	50,489		49,418	892	179
Prior	160,662		158,510	97	2,055
Revolving loans	2,178		2,178	—	—

Total	$	781,538	777,884	1,137	2,517
Home equity loans
Term loans by origination year
2021 (year-to-date)	$	38	38	—	—
2020	67		67	—	—
2019	589		555	—	34
2018	887		887	—	—
2017	783		783	—	—
Prior	10,780		10,114	161	505
Revolving loans	647,776		642,827	2,933	2,016

Total	$	660,920	655,271	3,094	2,555
Other consumer loans
Term loans by origination year
2021 (year-to-date)	$	127,963	127,893	65	5
2020	87,303		87,072	189	42
2019	42,347		41,943	172	232
2018	23,468		23,180	94	194
2017	9,548		9,495	42	11
Prior	19,132		16,871	2,042	219
Revolving loans	30,487		30,435	34	18

Total	$	340,248	336,889	2,638	721