Loans

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



	September 30, 2018			December 31, 2017
Residential real estate	$	1,485,823		$	1,468,278
Home equity	143,540			139,499
Commercial and industrial	213,815			208,484
Commercial real estate	1,268,052			1,277,576
Consumer	31,869			29,162
DDA overdrafts	3,598			4,411
Gross loans	3,146,697			3,127,410
Allowance for loan losses	(16,311		)	(18,836		)
Net loans	$	3,130,386		$	3,108,574

Construction loans of $17.6 million and $25.3 million are included within residential real estate loans at September 30, 2018 and December 31, 2017, respectively. Construction loans of $24.1 million and $28.9 million are included within commercial real estate loans at September 30, 2018 and December 31, 2017, 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.