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:



	At or for the Nine Months ended			At or for the Year ended
(Dollars in thousands)	September 30, 2017			December 31, 2016
Residential real estate loans	$	734,242		674,347
Commercial loans
Real estate	3,503,976			2,990,141
Other commercial	1,575,514			1,342,250
Total	5,079,490			4,332,391
Consumer and other loans
Home equity	452,291			434,774
Other consumer	243,410			242,951
Total	695,701			677,725
Loans receivable	6,509,433			5,684,463
Allowance for loan and lease losses	(129,576		)	(129,572	)
Loans receivable, net	$	6,379,857		5,554,891
Net deferred origination (fees) costs included in loans receivable	$	(2,140	)	(1,228	)
Net purchase accounting (discounts) premiums included in loans receivable	$	(17,803	)	(12,144	)
Weighted-average interest rate on loans (tax-equivalent)	4.80		%	4.77	%

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



	Three Months ended September 30, 2017
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,877		11,522		68,503		36,984		7,662		5,206
Provision for loan losses	3,327			(10	)	2,214		696		(682	)	1,109
Charge-offs	(5,983		)	(44	)	(3,227	)	(374	)	(15	)	(2,323	)
Recoveries	2,355			12		735		514		16		1,078
Balance at end of period	$	129,576		11,480		68,225		37,820		6,981		5,070



	Three Months ended September 30, 2016
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	132,386		13,666		66,809		37,031		8,629		6,251
Provision for loan losses	626			108		—		(1,033	)	561		990
Charge-offs	(2,800		)	(11	)	(55	)	(342	)	(693	)	(1,699	)
Recoveries	2,322			148		490		923		77		684
Balance at end of period	$	132,534		13,911		67,244		36,579		8,574		6,226



	Nine Months ended September 30, 2017
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,572		12,436		65,773		37,823		7,572		5,968
Provision for loan losses	7,938			(946	)	6,403		551		(324	)	2,254
Charge-offs	(14,801		)	(87	)	(5,261	)	(1,855	)	(458	)	(7,140	)
Recoveries	6,867			77		1,310		1,301		191		3,988
Balance at end of period	$	129,576		11,480		68,225		37,820		6,981		5,070



	Nine Months ended September 30, 2016
(Dollars in thousands)	Total			Residential Real Estate		Commercial Real Estate		Other Commercial		Home Equity		Other Consumer
Balance at beginning of period	$	129,697		14,427		67,877		32,525		8,998		5,870
Provision for loan losses	1,194			(342	)	(3,490	)	3,407		215		1,404
Charge-offs	(5,332		)	(366	)	(342	)	(1,068	)	(891	)	(2,665	)
Recoveries	6,975			192		3,199		1,715		252		1,617
Balance at end of period	$	132,534		13,911		67,244		36,579		8,574		6,226

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



	September 30, 2017
(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	$	4,077	320	666	2,407	94	590
Collectively evaluated for impairment	125,499		11,160	67,559	35,413	6,887	4,480
Total allowance for loan and lease losses	$	129,576	11,480	68,225	37,820	6,981	5,070
Loans receivable
Individually evaluated for impairment	$	122,893	13,410	79,070	22,456	4,600	3,357
Collectively evaluated for impairment	6,386,540		720,832	3,424,906	1,553,058	447,691	240,053
Total loans receivable	$	6,509,433	734,242	3,503,976	1,575,514	452,291	243,410



	December 31, 2016
(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	$	6,881	856	922	4,419	296	388
Collectively evaluated for impairment	122,691		11,580	64,851	33,404	7,276	5,580
Total allowance for loan and lease losses	$	129,572	12,436	65,773	37,823	7,572	5,968
Loans receivable
Individually evaluated for impairment	$	130,263	11,612	85,634	23,950	5,934	3,133
Collectively evaluated for impairment	5,554,200		662,735	2,904,507	1,318,300	428,840	239,818
Total loans receivable	$	5,684,463	674,347	2,990,141	1,342,250	434,774	242,951

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 disclose information related to impaired loans by portfolio segment:



	At or for the Three or Nine Months ended September 30, 2017
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	17,940	3,121	5,275	7,832	336	1,376
Unpaid principal balance	18,432		3,272	5,364	8,038	353	1,405
Specific valuation allowance	4,077		320	666	2,407	94	590
Average balance - three months	17,616		3,005	5,151	7,667	363	1,430
Average balance - nine months	19,310		2,916	6,177	8,550	402	1,265
Loans without a specific valuation allowance
Recorded balance	$	104,953	10,289	73,795	14,624	4,264	1,981
Unpaid principal balance	129,250		11,151	94,342	16,898	4,799	2,060
Average balance - three months	107,038		10,369	76,233	14,332	4,300	1,804
Average balance - nine months	109,355		9,937	77,286	15,199	5,026	1,907
Total
Recorded balance	$	122,893	13,410	79,070	22,456	4,600	3,357
Unpaid principal balance	147,682		14,423	99,706	24,936	5,152	3,465
Specific valuation allowance	4,077		320	666	2,407	94	590
Average balance - three months	124,654		13,374	81,384	21,999	4,663	3,234
Average balance - nine months	128,665		12,853	83,463	23,749	5,428	3,172



	At or for the Year ended December 31, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	22,128	2,759	9,129	8,814	334	1,092
Unpaid principal balance	22,374		2,825	9,130	8,929	345	1,145
Specific valuation allowance	6,881		856	922	4,419	296	388
Average balance	26,745		4,942	10,441	9,840	257	1,265
Loans without a specific valuation allowance
Recorded balance	$	108,135	8,853	76,505	15,136	5,600	2,041
Unpaid principal balance	131,059		9,925	94,180	17,724	7,120	2,110
Average balance	108,827		12,858	72,323	15,537	6,004	2,105
Total
Recorded balance	$	130,263	11,612	85,634	23,950	5,934	3,133
Unpaid principal balance	153,433		12,750	103,310	26,653	7,465	3,255
Specific valuation allowance	6,881		856	922	4,419	296	388
Average balance	135,572		17,800	82,764	25,377	6,261	3,370

Interest income recognized on impaired loans for the nine months ended September 30, 2017 and 2016 was not significant.

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



	September 30, 2017
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	22,567	459	12,806	5,959	1,805	1,538
Accruing loans 60-89 days past due	6,548		1,000	2,800	1,090	987	671
Accruing loans 90 days or more past due	3,944		420	—	3,261	200	63
Non-accrual loans	46,770		5,321	27,924	8,540	3,945	1,040
Total past due and non-accrual loans	79,829		7,200	43,530	18,850	6,937	3,312
Current loans receivable	6,429,604		727,042	3,460,446	1,556,664	445,354	240,098
Total loans receivable	$	6,509,433	734,242	3,503,976	1,575,514	452,291	243,410



	December 31, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	20,599	6,338	5,079	5,388	2,439	1,355
Accruing loans 60-89 days past due	5,018		1,398	754	1,352	844	670
Accruing loans 90 days or more past due	1,099		266	145	283	191	214
Non-accrual loans	49,332		4,528	30,216	8,817	5,240	531
Total past due and non-accrual loans	76,048		12,530	36,194	15,840	8,714	2,770
Current loans receivable	5,608,415		661,817	2,953,947	1,326,410	426,060	240,181
Total loans receivable	$	5,684,463	674,347	2,990,141	1,342,250	434,774	242,951

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 September 30, 2017
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	5		1	1	3	—	—
Pre-modification recorded balance	$	956	317	386	253	—	—
Post-modification recorded balance	$	956	317	386	253	—	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—



	Three Months ended September 30, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	5		—	4	1	—	—
Pre-modification recorded balance	$	7,781	—	7,014	767	—	—
Post-modification recorded balance	$	7,718	—	6,990	728	—	—
TDRs that subsequently defaulted
Number of loans	1		—	—	1	—	—
Recorded balance	$	5	—	—	5	—	—



	Nine Months ended September 30, 2017
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	22		4	7	8	2	1
Pre-modification recorded balance	$	22,912	652	13,003	9,069	178	10
Post-modification recorded balance	$	20,230	652	10,321	9,069	178	10
TDRs that subsequently defaulted
Number of loans	1		—	—	1	—	—
Recorded balance	$	18	—	—	18	—	—



	Nine Months ended September 30, 2016
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
TDRs that occurred during the period
Number of loans	27		—	10	15	2	—
Pre-modification recorded balance	$	21,652	—	9,217	12,226	209	—
Post-modification recorded balance	$	21,613	—	9,193	12,211	209	—
TDRs that subsequently defaulted
Number of loans	9		—	1	2	—	6
Recorded balance	$	704	—	570	5	—	129

The modifications for the TDRs that occurred during the nine months ended September 30, 2017 and 2016 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 $5,152,000 and $4,967,000 for the nine months ended September 30, 2017 and 2016, 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 home equity and residential real estate for the nine months ended September 30, 2017 and 2016, respectively. At September 30, 2017 and December 31, 2016, the Company had $2,559,000 and $1,770,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At September 30, 2017 and December 31, 2016, the Company had $986,000 and $2,699,000, respectively, of OREO secured by residential real estate properties.