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, 2018		December 31, 2017
Commercial and industrial	$	3,844,067	$	3,529,914
Agricultural	433,175		430,886
Commercial real estate:
Office, retail, and industrial	1,834,918		1,979,820
Multi-family	703,091		675,463
Construction	633,601		539,820
Other commercial real estate	1,337,396		1,358,515
Total commercial real estate	4,509,006		4,553,618
Total corporate loans	8,786,248		8,514,418
Home equity	847,903		827,055
1-4 family mortgages	880,181		774,357
Installment	377,233		321,982
Total consumer loans	2,105,317		1,923,394
Total loans	$	10,891,565	$	10,437,812
Deferred loan fees included in total loans	$	5,444	$	4,986
Overdrawn demand deposits included in total loans	8,163		8,587

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 2017 10-K.

Loan Sales

The following table presents loan sales for the quarters and six months ended June 30, 2018 and 2017.

Loan Sales

(Dollar amounts in thousands)



	Quarters Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Corporate loan sales
Proceeds from sales	$	3,991	$	19,569	$	12,312	$	34,937
Less book value of loans sold	3,861		19,123		11,984		34,240
Net gains on corporate loan sales⁽¹⁾	130		446		328		697
1-4 family mortgage loan sales
Proceeds from sales	$	65,715	$	60,894	$	130,900	$	116,655
Less book value of loans sold	64,336		59,461		128,094		114,059
Net gains on 1-4 family mortgage loan sales⁽²⁾	1,379		1,433		2,806		2,596
Total net gains on loan sales	$	1,509	$	1,879	$	3,134	$	3,293


⁽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. For additional disclosure related to the Company's obligations resulting from the sale of certain 1-4 family mortgage loans, see Note 10, "Commitments, Guarantees, and Contingent Liabilities."