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
	March 31, 2017		December 31, 2016
Commercial and industrial	$	3,370,780	$	2,827,658
Agricultural	422,784		389,496
Commercial real estate:
Office, retail, and industrial	1,988,979		1,581,967
Multi-family	671,710		614,052
Construction	568,460		451,540
Other commercial real estate	1,357,781		979,528
Total commercial real estate	4,586,930		3,627,087
Total corporate loans	8,380,494		6,844,241
Home equity	880,667		747,983
1-4 family mortgages	540,148		423,922
Installment	253,061		237,999
Total consumer loans	1,673,876		1,409,904
Total loans	$	10,054,370	$	8,254,145
Deferred loan fees included in total loans	$	4,429	$	3,838
Overdrawn demand deposits included in total loans	6,303		7,836

The increase in total loans for the quarter ended March 31, 2017 includes loans acquired in the Standard acquisition. For additional disclosure related to the Standard transaction, see note 3, "Acquisitions."

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 2016 10-K.

Loan Sales

The following table presents loan sales for the quarters ended March 31, 2017 and 2016.

Loan Sales

(Dollar amounts in thousands)



	Quarters Ended March 31,
	2017		2016
Corporate loan sales
Proceeds from sales	$	15,368	$	9,588
Less book value of loans sold	15,117		9,130
Net gains on corporate loan sales ⁽¹⁾	$	251	$	458
1-4 family mortgage loan sales
Proceeds from sales	$	55,761	$	39,507
Less book value of loans sold	54,598		38,680
Net gains on 1-4 family mortgage loan sales ⁽²⁾	1,163		827
Total net gains on loan sales	$	1,414	$	1,285


⁽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 13, "Commitments, Guarantees, and Contingent Liabilities."