On January 1, 2020, the Company adopted FASB ASU 2016-13, Financial Instruments - Credit Losses, which significantly changed the loan and allowance for credit loss accounting disclosures. The following loan and allowance for credit loss accounting disclosures are presented in accordance with ASC Topic 326, whereas prior periods are presented in accordance with the incurred loss model as disclosed in the Company’s 2019 Annual Report on Form 10-K.


(Dollars in thousands)	September 30, 2020		December 31, 2019
Residential real estate	$	862,614	926,388
Commercial real estate	6,201,817		5,579,307
Other commercial	3,593,322		2,094,254
Home equity	646,850		617,201
Other consumer	314,128		295,660
Loans receivable	11,618,731		9,512,810
Allowance for credit losses	(164,552)		(124,490)
Loans receivable, net	$	11,454,179	9,388,320
Net deferred origination (fees) costs included in loans receivable	$	(38,712)	(6,964)
Net purchase accounting (discounts) premiums included in loans receivable	$	(18,063)	(21,574)
Accrued interest receivable on loans	$	65,806	40,962

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


	Three Months ended September 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	162,509	9,986	89,104	48,838	9,962	4,619


Credit loss expense (reversal)	2,869		(216)	5,208	1,199	(2,526)	(796)
Charge-offs	(2,630)		—	(445)	(1,598)	(99)	(488)
Recoveries	1,804		35	530	314	93	832
Balance at end of period	$	164,552	9,805	94,397	48,753	7,430	4,167


	Three Months ended September 30, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	129,054	10,695	72,447	36,259	5,801	3,852
Credit loss expense (reversal)	—		(325)	(1,480)	1,220	(777)	1,362
Charge-offs	(5,890)		(141)	(1,858)	(1,399)	—	(2,492)
Recoveries	2,371		8	549	778	17	1,019
Balance at end of period	$	125,535	10,237	69,658	36,858	5,041	3,741


	Nine Months ended September 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	124,490	10,111	69,496	36,129	4,937	3,817
Impact of adopting CECL	3,720		3,584	10,533	(13,759)	3,400	(38)
Acquisitions	49		—	49	—	—	—
Credit loss expense (reversal)	39,165		(3,923)	14,084	28,358	(860)	1,506
Charge-offs	(7,865)		(21)	(625)	(3,471)	(293)	(3,455)
Recoveries	4,993		54	860	1,496	246	2,337
Balance at end of period	$	164,552	9,805	94,397	48,753	7,430	4,167


	Nine Months ended September 30, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Balance at beginning of period	$	131,239	10,631	72,448	38,160	5,811	4,189


Credit loss expense (reversal)	57		(152)	(1,824)	(524)	(786)	3,343
Charge-offs	(12,090)		(482)	(2,267)	(2,597)	(28)	(6,716)
Recoveries	6,329		240	1,301	1,819	44	2,925
Balance at end of period	$	125,535	10,237	69,658	36,858	5,041	3,741

As a result of the adoption of the CECL accounting standard, the Company adjusted the January 1, 2020 ACL balances within each loan segment to reflect the changes from the incurred loss model to the current expected credit loss model which resulted in increases and decreases in each loan segment based on, among other factors, quantitative and qualitative assumptions and the economic forecast to estimate the credit loss expense over the expected life of the loans. During the nine months ended September 30, 2020, primarily as a result of the COVID-19 pandemic, there was a significant increase in the overall ACL and increases and decreases within certain loan segments. In addition, the acquisition of SBAZ resulted in a $4,794,000 increase in the ACL due to the credit loss expense recorded subsequent to the acquisition date. The COVID-19 pandemic significantly adjusted the economic forecast used in the ACL model including a significant increase in national and regional unemployment rates and a significant decrease in the gross domestic product (“GDP”).

The most notable change in charge-offs was in the other consumer loan segment which was primarily driven by deposit overdraft charge-offs which typically experience high charge-off rates and the amounts were comparable to historical trends. During the nine months ended September 30, 2020, there have been no significant changes to the types of collateral securing collateral-dependent loans.

During the nine month period ended September 30, 2020, the Company acquired loans through the SBAZ acquisition. Such loans were evaluated at acquisition date and it was determined there were PCD loans totaling $3,401,000 with an ACL of $49,000. There was also a discount associated with such loans of $13,000, which was attributable to changes in interest rates and other factors such as liquidity as of acquisition date.


	September 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	9,534	520	2,662	2,782	2,160	1,410
Accruing loans 60-89 days past due	8,097		1,666	2,954	2,263	977	237
Accruing loans 90 days or more past due	2,952		217	1,426	1,102	80	127
Non-accrual loans with no ACL	32,047		3,213	16,318	9,441	2,804	271
Non-accrual loans with ACL	4,303		275	1,980	1,930	87	31
Total past due and non-accrual loans	56,933		5,891	25,340	17,518	6,108	2,076
Current loans receivable	11,561,798		856,723	6,176,477	3,575,804	640,742	312,052
Total loans receivable	$	11,618,731	862,614	6,201,817	3,593,322	646,850	314,128


	December 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Accruing loans 30-59 days past due	$	15,944	3,403	4,946	4,685	1,040	1,870
Accruing loans 60-89 days past due	7,248		749	2,317	1,190	1,902	1,090
Accruing loans 90 days or more past due	1,412		753	64	143	—	452
Non-accrual loans	30,883		4,715	15,650	6,592	3,266	660
Total past due and non-accrual loans	55,487		9,620	22,977	12,610	6,208	4,072
Current loans receivable	9,457,323		916,768	5,556,330	2,081,644	610,993	291,588
Total loans receivable	$	9,512,810	926,388	5,579,307	2,094,254	617,201	295,660

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table presents the amortized cost basis of collateral-dependent loans by collateral type:


	September 30, 2020
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Business assets	$	5,080	—	84	4,996	—	—
Residential real estate	4,201		1,536	658	—	1,954	53
Other real estate	13,572		31	12,880	624	21	16
Other	132		—	—	16	—	116
Total	$	22,985	1,567	13,622	5,636	1,975	185

A restructured loan is considered a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The following tables present the loans modified as TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted:


	Three Months ended September 30, 2020
(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	6		—	5	1	—	—
Pre-modification recorded balance	$	7,482	—	6,648	834	—	—
Post-modification recorded balance	$	7,482	—	6,648	834	—	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	Three Months ended September 30, 2019
(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	6		—	4	2	—	—
Pre-modification recorded balance	$	3,168	—	3,067	101	—	—
Post-modification recorded balance	$	3,168	—	3,067	101	—	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	Nine Months ended September 30, 2020
(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	16		1	10	4	1	—
Pre-modification recorded balance	$	14,945	210	13,392	1,304	39	—
Post-modification recorded balance	$	14,945	210	13,392	1,304	39	—
TDRs that subsequently defaulted
Number of loans	—		—	—	—	—	—
Recorded balance	$	—	—	—	—	—	—


	Nine Months ended September 30, 2019
(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	14		1	5	4	1	3
Pre-modification recorded balance	$	5,261	117	4,102	668	103	271
Post-modification recorded balance	$	5,247	123	4,102	668	103	251
TDRs that subsequently defaulted
Number of loans	1		—	—	—	—	1
Recorded balance	$	305	—	—	—	—	305

The modifications for the loans designated as TDRs during the nine months ended September 30, 2020 and 2019 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 loans designated as TDRs during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $2,265,000 and $2,982,000 for the nine months ended September 30, 2020 and 2019, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate for the nine months ended September 30, 2020 and 2019. At September 30, 2020 and December 31, 2019, the Company had $765,000 and $1,744,000, respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process. At September 30, 2020 and December 31, 2019, the Company had $1,917,000 and $1,504,000, respectively, of OREO secured by residential real estate properties.

The Company categorizes commercial real estate and other commercial loans into risk categories based on relevant information about the ability of borrowers to service their obligations. The following tables present the amortized cost in commercial real estate and other commercial loans based on the Company’s internal risk rating. The date of a modification, renewal or extension of a loan is considered for the year of origination if the terms of the loan are as favorable to the Company as the terms are for a comparable loan to other borrowers with similar credit risk.


	September 30, 2020
(Dollars in thousands)	Total		Pass	Special Mention	Substandard	Doubtful/ Loss
Commercial real estate loans
Term loans by origination year
2020 (year-to-date)	$	1,023,640	1,018,529	697	4,414	—
2019	1,149,893		1,141,014	335	8,544	—
2018	986,619		947,230	1,190	38,199	—
2017	786,907		756,583	—	30,324	—
2016	526,236		507,694	206	18,336	—
Prior	1,581,948		1,546,314	—	35,286	348
Revolving loans	146,574		143,265	691	2,617	1

Total	$	6,201,817	6,060,629	3,119	137,720	349
Other commercial loans
Term loans by origination year
2020 (year-to-date)	$	1,790,810	1,784,359	606	5,845	—
2019	335,126		330,303	—	4,820	3
2018	281,578		275,011	—	6,566	1
2017	287,150		281,371	—	5,323	456
2016	191,092		188,849	—	2,066	177
Prior	239,070		229,806	—	8,100	1,164
Revolving loans	468,496		453,105	—	14,416	975

Total	$	3,593,322	3,542,804	606	47,136	2,776

For residential real estate, home equity and other consumer loan segments, the Company evaluates credit quality primarily on the aging status of the loan. The following tables present the amortized cost in residential real estate, home equity and other consumer loans based on payment performance:


	September 30, 2020
(Dollars in thousands)	Total		Performing	30-89 Days Past Due	Non-Accrual and 90 Days or More Past Due
Residential real estate loans
Term loans by origination year
2020 (year-to-date)	$	141,655	141,655	—	—
2019	228,558		228,558	—	—
2018	129,077		128,043	791	243
2017	92,899		92,899	—	—
2016	65,216		64,382	—	834
Prior	202,810		198,787	1,395	2,628
Revolving loans	2,399		2,399	—	—

Total	$	862,614	856,723	2,186	3,705
Home equity loans
Term loans by origination year
2020 (year-to-date)	$	75	75	—	—
2019	1,028		992	—	36
2018	1,862		1,861	—	1
2017	1,745		1,745	—	—
2016	1,047		1,047	—	—
Prior	17,337		15,599	1,059	679
Revolving loans	623,756		619,423	2,078	2,255

Total	$	646,850	640,742	3,137	2,971
Other consumer loans
Term loans by origination year
2020 (year-to-date)	$	106,569	106,501	56	12
2019	75,743		75,340	354	49
2018	49,929		49,737	144	48
2017	21,930		21,829	62	39
2016	12,424		12,278	80	66
Prior	22,250		21,106	932	212
Revolving loans	25,283		25,261	19	3

Total	$	314,128	312,052	1,647	429

The implementation of FASB ASU 2016-13, Financial Instruments - Credit Losses significantly changed disclosures related to loans and, as a result, certain disclosures are no longer required. The following tables represent disclosures for the prior period that are no longer required as of January 1, 2020, but are included in this Form 10-Q since the Company is required to disclose comparative information.


	December 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans receivable
Individually evaluated for impairment	$	94,504	7,804	58,609	21,475	3,745	2,871
Collectively evaluated for impairment	9,418,306		918,584	5,520,698	2,072,779	613,456	292,789
Total loans receivable	$	9,512,810	926,388	5,579,307	2,094,254	617,201	295,660
Allowance for loan and lease losses
Individually evaluated for impairment	$	95	—	73	10	—	12
Collectively evaluated for impairment	124,395		10,111	69,423	36,119	4,937	3,805
Total allowance for loan and lease losses	$	124,490	10,111	69,496	36,129	4,937	3,817


	At or for the Year ended December 31, 2019
(Dollars in thousands)	Total		Residential Real Estate	Commercial Real Estate	Other Commercial	Home Equity	Other Consumer
Loans with a specific valuation allowance
Recorded balance	$	5,388	—	5,343	10	—	35
Unpaid principal balance	5,388		—	5,343	10	—	35
Specific valuation allowance	95		—	73	10	—	12
Average balance	10,378		409	6,341	3,490	24	114
Loans without a specific valuation allowance
Recorded balance	89,116		7,804	53,266	21,465	3,745	2,836
Unpaid principal balance	99,355		9,220	57,735	24,758	4,494	3,148
Average balance	93,338		9,879	59,107	18,079	3,486	2,787
Total
Recorded balance	$	94,504	7,804	58,609	21,475	3,745	2,871
Unpaid principal balance	104,743		9,220	63,078	24,768	4,494	3,183
Specific valuation allowance	95		—	73	10	—	12
Average balance	103,716		10,288	65,448	21,569	3,510	2,901