Loans

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



	March 31, 2019			December 31, 2018
Residential real estate	$	1,625,647		$	1,635,338
Home equity	152,251			153,496
Commercial and industrial	289,327			286,314
Commercial real estate	1,436,190			1,454,942
Consumer	52,483			51,190
DDA overdrafts	3,424			6,328
Gross loans	3,559,322			3,587,608
Allowance for loan losses	(14,646		)	(15,966		)
Net loans	$	3,544,676		$	3,571,642

Construction loans included in:
Residential real estate	$	22,635		$	21,834
Commercial real estate	56,282			37,869

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.