Loans

The following summarizes the Company’s major classifications for loans (in thousands):



	September 30, 2017			December 31, 2016
Residential real estate	$	1,465,942		$	1,451,462
Home equity	139,702			141,965
Commercial and industrial	204,722			185,667
Commercial real estate	1,260,906			1,229,516
Consumer	30,323			32,545
DDA overdrafts	4,317			5,071
Gross loans	3,105,912			3,046,226
Allowance for loan losses	(19,554		)	(19,730		)
Net loans	$	3,086,358		$	3,026,496

Construction loans of $19.8 million and $14.2 million are included within residential real estate loans at September 30, 2017 and December 31, 2016, respectively. Construction loans of $24.3 million and $12.8 million are included within commercial real estate loans at September 30, 2017 and December 31, 2016, respectively. The Company’s commercial and residential real estate construction loans are primarily secured by real estate within the Company’s principal markets. These loans were originated under the Company’s loan policy, which is focused on the risk characteristics of residential and commercial real estate lending, including specific risks related to construction lending. Adequate consideration has been given to these loans in establishing the Company’s allowance for loan losses.