LOANS

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



	December 31, 2018			December 31, 2017

Residential real estate	$	1,656,989		$	1,468,278
Home equity	153,496			139,499
Commercial and industrial	286,314			208,484
Commercial real estate	1,433,291			1,277,576
Consumer	51,190			29,162
DDA overdrafts	6,328			4,411
Gross loans	3,587,608			3,127,410
Allowance for loan losses	(15,966		)	(18,836		)
Net loans	$	3,571,642		$	3,108,574

Construction loans included in:
Residential real estate	$	21,834		$	25,270
Commercial real estate	37,869			28,871

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 the loan portfolio, including construction loans. In the judgment of the Company's management, adequate consideration has been given to these loans in establishing the Company's allowance for loan losses.