LOANS

Loans Held-for-Investment

The following table presents the Company's loans held-for-investment by class.

Loan Portfolio

(Dollar amounts in thousands)



	September 30, 2014		December 31, 2013
Commercial and industrial	$	2,208,166	$	1,830,638
Agricultural	347,511		321,702
Commercial real estate:
Office, retail, and industrial	1,422,522		1,353,685
Multi-family	559,689		332,873
Construction	193,445		186,197
Other commercial real estate	871,825		807,071
Total commercial real estate	3,047,481		2,679,826
Total corporate loans	5,603,158		4,832,166
Home equity	517,446		427,020
1-4 family mortgages	238,172		275,992
Installment	69,428		44,827
Total consumer loans	825,046		747,839
Total loans, excluding covered loans	6,428,204		5,580,005
Covered loans ⁽¹⁾	90,875		134,355
Total loans	$	6,519,079	$	5,714,360
Deferred loan fees included in total loans	$	4,163	$	4,656
Overdrawn demand deposits included in total loans	3,632		5,047


⁽¹⁾	For information on covered loans, refer to Note 6, “Acquired and Covered Loans.”

The Company primarily lends to community-based and mid-sized businesses, commercial real estate customers, and consumers in its markets. Within these areas, the Company diversifies its loan portfolio by loan type, industry, and borrower.

It is the Company’s policy to review each prospective credit to determine the appropriateness and the adequacy of security or collateral prior to making a loan. In the event of borrower default, the Company seeks recovery in compliance with state lending laws, the Company’s lending standards, and credit monitoring and remediation procedures. A discussion of risk characteristics relevant to each portfolio segment is presented in Note 4, “Loans,” in the Company’s 2013 10-K.

Loan Sales

The table below summarizes the Company's loan sales for the quarter and nine months ended September 30, 2014 and 2013.

Loan Sales

(Dollar amounts in thousands)



	Quarters Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
1-4 family mortgage loans
Proceeds from sales	$	32,611	$	37,060	$	117,549	$	122,067
Less book value of loans sold:
Loans originated with intent to sell	26,384		32,485		62,319		32,807
Loans held-for-investment	5,302		3,592		52,384		85,271
Total book value of loans sold	31,686		36,077		114,703		118,078
Net gains on sales of 1-4 family mortgages	$	925	$	983	$	2,846	$	3,989

The Company retained servicing responsibilities for a portion of the 1-4 family mortgage loans sold and collects servicing fees equal to a percentage of the outstanding principal balance. The Company also retained limited recourse for credit losses on the sold loans. A description of the recourse obligation is presented in Note 11, “Commitments, Guarantees, and Contingent Liabilities.”