Loans Receivable, Net

The Company’s loan portfolio is comprised of three segments: residential real estate, commercial, and consumer and other loans. The loan segments are further disaggregated into the following classes: residential real estate, commercial real estate, other commercial, home equity and other consumer loans. The following table presents loans receivable for each portfolio class of loans:



(Dollars in thousands)	June 30, 2015			December 31, 2014
Residential real estate loans	$	635,674		611,463
Commercial loans
Real estate	2,454,369			2,337,548
Other commercial	1,074,905			925,900
Total	3,529,274			3,263,448
Consumer and other loans
Home equity	410,708			394,670
Other consumer	231,775			218,514
Total	642,483			613,184
Loans receivable ¹	4,807,431			4,488,095
Allowance for loan and lease losses	(130,519		)	(129,753	)
Loans receivable, net	$	4,676,912		4,358,342

__________


¹	Includes net deferred fees, costs, premiums and discounts of $13,312,000 and $13,710,000 at June 30, 2015 and December 31, 2014, respectively.

Substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas.

The following tables summarize the activity in the ALLL by portfolio segment:



	Three Months ended June 30, 2015
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,856		15,131		67,327		31,515		9,519		6,364
Provision for loan losses	282			(258	)	491		532		(559	)	76
Charge-offs	(1,301		)	(44	)	(303	)	(675	)	(122	)	(157	)
Recoveries	1,682			21		1,182		111		108		260
Balance at end of period	$	130,519		14,850		68,697		31,483		8,946		6,543



	Three Months ended June 30, 2014
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	130,729		14,066		70,571		28,484		9,426		8,182
Provision for loan losses	239			915		(2,229	)	1,334		308		(89	)
Charge-offs	(1,738		)	(377	)	(83	)	(586	)	(186	)	(506	)
Recoveries	1,406			20		670		357		177		182
Balance at end of period	$	130,636		14,624		68,929		29,589		9,725		7,769



	Six Months ended June 30, 2015
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,753		14,680		67,799		30,891		9,963		6,420
Provision for loan losses	1,047			182		205		1,644		(1,018	)	34
Charge-offs	(2,598		)	(58	)	(748	)	(1,369	)	(153	)	(270	)
Recoveries	2,317			46		1,441		317		154		359
Balance at end of period	$	130,519		14,850		68,697		31,483		8,946		6,543



	Six Months ended June 30, 2014
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	130,351		14,067		70,332		28,630		9,299		8,023
Provision for loan losses	1,361			737		(2,189	)	2,267		511		35
Charge-offs	(3,324		)	(413	)	(264	)	(1,749	)	(299	)	(599	)
Recoveries	2,248			233		1,050		441		214		310
Balance at end of period	$	130,636		14,624		68,929		29,589		9,725		7,769

The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment:



	June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Allowance for loan and lease losses
Individually evaluated for impairment	$	7,254	793	2,546	3,306	111	498
Collectively evaluated for impairment	123,265		14,057	66,151	28,177	8,835	6,045
Total allowance for loan and lease losses	$	130,519	14,850	68,697	31,483	8,946	6,543
Loans receivable
Individually evaluated for impairment	$	151,732	18,199	94,860	28,061	6,580	4,032
Collectively evaluated for impairment	4,655,699		617,475	2,359,509	1,046,844	404,128	227,743
Total loans receivable	$	4,807,431	635,674	2,454,369	1,074,905	410,708	231,775



	December 31, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Allowance for loan and lease losses
Individually evaluated for impairment	$	11,597	853	2,967	6,836	447	494
Collectively evaluated for impairment	118,156		13,827	64,832	24,055	9,516	5,926
Total allowance for loan and lease losses	$	129,753	14,680	67,799	30,891	9,963	6,420
Loans receivable
Individually evaluated for impairment	$	161,366	19,576	105,264	25,321	6,901	4,304
Collectively evaluated for impairment	4,326,729		591,887	2,232,284	900,579	387,769	214,210
Total loans receivable	$	4,488,095	611,463	2,337,548	925,900	394,670	218,514

The following tables disclose information related to impaired loans by portfolio segment:



	At or for the Three or Six Months ended June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	34,014	5,055	15,111	11,862	234	1,752
Unpaid principal balance	35,374		5,186	15,505	12,184	253	2,246
Specific valuation allowance	7,254		793	2,546	3,306	111	498
Average balance - three months	34,166		5,081	14,034	13,003	319	1,729
Average balance - six months	38,006		4,757	18,408	12,461	617	1,763
Loans without a specific valuation allowance
Recorded balance	$	117,718	13,144	79,749	16,199	6,346	2,280
Unpaid principal balance	146,826		14,440	101,325	21,622	7,100	2,339
Average balance - three months	122,973		13,525	82,629	18,345	6,220	2,254
Average balance - six months	120,541		14,172	81,122	16,878	6,042	2,327
Total
Recorded balance	$	151,732	18,199	94,860	28,061	6,580	4,032
Unpaid principal balance	182,200		19,626	116,830	33,806	7,353	4,585
Specific valuation allowance	7,254		793	2,546	3,306	111	498
Average balance - three months	157,139		18,606	96,663	31,348	6,539	3,983
Average balance - six months	158,547		18,929	99,530	29,339	6,659	4,090



	At or for the Year ended December 31, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	45,688	4,110	27,155	11,377	1,214	1,832
Unpaid principal balance	48,477		4,276	28,048	12,461	1,336	2,356
Specific valuation allowance	11,597		853	2,967	6,836	447	494
Average balance	53,339		5,480	24,519	19,874	1,039	2,427
Loans without a specific valuation allowance
Recorded balance	$	115,678	15,466	78,109	13,944	5,687	2,472
Unpaid principal balance	145,038		16,683	100,266	19,117	6,403	2,569
Average balance	128,645		15,580	89,015	14,024	7,163	2,863
Total
Recorded balance	$	161,366	19,576	105,264	25,321	6,901	4,304
Unpaid principal balance	193,515		20,959	128,314	31,578	7,739	4,925
Specific valuation allowance	11,597		853	2,967	6,836	447	494
Average balance	181,984		21,060	113,534	33,898	8,202	5,290

Interest income recognized on impaired loans for the six months ended June 30, 2015 and 2014 was not significant.

The following tables present an aging analysis of the recorded investment in loans by portfolio segment:



	June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	19,801	473	10,057	6,484	1,943	844
Accruing loans 60-89 days past due	8,673		858	5,616	765	1,169	265
Accruing loans 90 days or more past due	618		—	396	33	—	189
Non-accrual loans	56,918		7,038	33,671	9,610	5,902	697
Total past due and non-accrual loans	86,010		8,369	49,740	16,892	9,014	1,995
Current loans receivable	4,721,421		627,305	2,404,629	1,058,013	401,694	229,780
Total loans receivable	$	4,807,431	635,674	2,454,369	1,074,905	410,708	231,775



	December 31, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	19,139	3,506	7,925	5,310	1,374	1,024
Accruing loans 60-89 days past due	6,765		1,686	3,592	609	679	199
Accruing loans 90 days or more past due	214		35	31	74	17	57
Non-accrual loans	61,882		6,798	39,717	8,421	5,969	977
Total past due and non-accrual loans	88,000		12,025	51,265	14,414	8,039	2,257
Current loans receivable	4,400,095		599,438	2,286,283	911,486	386,631	216,257
Total loans receivable	$	4,488,095	611,463	2,337,548	925,900	394,670	218,514

The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented:



	Three Months ended June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	15		—	7	5	—	3
Pre-modification recorded balance	$	4,038	—	2,828	1,006	—	204
Post-modification recorded balance	$	3,744	—	2,748	792	—	204
Troubled debt restructurings that subsequently defaulted
Number of loans	2		—	—	1	—	1
Recorded balance	$	101	—	—	99	—	2



	Three Months ended June 30, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	13		—	3	8	1	1
Pre-modification recorded balance	$	19,166	—	1,957	17,160	46	3
Post-modification recorded balance	$	19,158	—	2,000	17,109	46	3
Troubled debt restructurings that subsequently defaulted
Number of loans	1		—	—	1	—	—
Recorded balance	$	10	—	—	10	—	—



	Six Months ended June 30, 2015
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	20		—	9	8	—	3
Pre-modification recorded balance	$	7,123	—	5,010	1,909	—	204
Post-modification recorded balance	$	6,829	—	4,930	1,695	—	204
Troubled debt restructurings that subsequently defaulted
Number of loans	4		—	—	1	2	1
Recorded balance	$	217	—	—	99	116	2



	Six Months ended June 30, 2014
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Troubled debt restructurings
Number of loans	26		—	8	15	2	1
Pre-modification recorded balance	$	24,276	—	4,432	19,599	242	3
Post-modification recorded balance	$	23,639	—	4,475	18,919	242	3
Troubled debt restructurings that subsequently defaulted
Number of loans	2		—	—	2	—	—
Recorded balance	$	27	—	—	27	—	—

The modifications for the TDRs that occurred during the six months ended June 30, 2015 and 2014 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount.

In addition to the TDRs that occurred during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $5,494,000 and $6,604,000 for the six months ended June 30, 2015 and 2014, respectively, for which other real estate owned (“OREO”) was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate and residential real estate for the six months ended June 30, 2015 and 2014, respectively. At June 30, 2015, the Company had $1,007,000 of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At June 30, 2015, the Company had $1,626,000 of OREO secured by residential real estate properties.