LOANS

Loans Held-for-Investment

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

Loan Portfolio

(Dollar amounts in thousands)



	March 31, 2015		December 31, 2014
Commercial and industrial	$	2,318,058	$	2,253,556
Agricultural	368,836		358,249
Commercial real estate:
Office, retail, and industrial	1,443,562		1,478,379
Multi-family	560,800		564,421
Construction	191,104		204,236
Other commercial real estate	881,026		887,897
Total commercial real estate	3,076,492		3,134,933
Total corporate loans	5,763,386		5,746,738
Home equity	599,543		543,185
1-4 family mortgages	285,758		291,463
Installment	92,834		76,032
Total consumer loans	978,135		910,680
Total loans, excluding covered loans	6,741,521		6,657,418
Covered loans ⁽¹⁾	62,830		79,435
Total loans	$	6,804,351	$	6,736,853
Deferred loan fees included in total loans	$	4,087	$	3,922
Overdrawn demand deposits included in total loans	2,141		3,438


⁽¹⁾	For information on covered loans, see Note 5, "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 5, "Loans" to the Consolidated Financial Statements in the Company’s 2014 10-K.

Loan Sales

The table below summarizes the Company's loan sales for the quarters ended March 31, 2015 and 2014.

Loan Sales

(Dollar amounts in thousands)



	Quarters Ended March 31,
	2015		2014
Corporate loans
Proceeds from sales	$	945	$	—
Less book value of loans sold	945		—
Net gains on sales of corporate loans	—		—
1-4 family mortgage loans
Proceeds from sales	35,582		51,900
Less book value of loans sold:
Loans originated with intent to sell	34,496		15,458
Loans held-for-investment	—		35,369
Total book value of loans sold	34,496		50,827
Net gains on sales of 1-4 family mortgages	1,086		1,073
Total net gains on loan sales	$	1,086	$	1,073

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 10, "Commitments, Guarantees, and Contingent Liabilities."