LOANS

Loans Held-for-Investment

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

Loan Portfolio

(Dollar amounts in thousands)



	As of
	June 30, 2016		December 31, 2015
Commercial and industrial	$	2,699,742	$	2,524,726
Agricultural	401,858		387,440
Commercial real estate:
Office, retail, and industrial	1,529,675		1,395,454
Multi-family	587,104		528,324
Construction	371,016		216,882
Other commercial real estate	1,000,655		931,190
Total commercial real estate	3,488,450		3,071,850
Total corporate loans	6,590,050		5,984,016
Home equity	722,881		653,468
1-4 family mortgages	415,581		355,854
Installment	223,845		137,602
Total consumer loans	1,362,307		1,146,924
Covered loans	27,180		30,775
Total loans	$	7,979,537	$	7,161,715
Deferred loan fees included in total loans	$	4,359	$	5,191
Overdrawn demand deposits included in total loans	4,480		2,810

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 2015 10-K.

Loan Sales

The following table presents loan sales for the quarters and six months ended June 30, 2016 and 2015.

Loan Sales

(Dollar amounts in thousands)



	Quarters Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Corporate loan sales
Proceeds from sales	$	14,271	$	4,138	$	23,859	$	9,423
Less book value of loans sold	13,760		3,864		22,890		9,009
Net gains on corporate loan sales ⁽¹⁾	511		274		969		414
1-4 family mortgage loan sales
Proceeds from sales	53,258		53,445		92,765		89,027
Less book value of loans sold	52,089		51,949		90,769		86,445
Net gains on 1-4 family mortgage loan sales ⁽²⁾	1,169		1,496		1,996		2,582
Total net gains on loan sales	$	1,680	$	1,770	$	2,965	$	2,996


⁽¹⁾	Net gains on corporate loan sales are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income.


⁽²⁾	Net gains on 1-4 family mortgage loan sales are included in mortgage banking income in the Condensed Consolidated Statements of Income.

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 1-4 family mortgage loans. A description of the recourse obligation is presented in Note 12, "Commitments, Guarantees, and Contingent Liabilities."