| Loans and reserve for credit losses | Loans and reserve for credit losses The composition of the loan portfolio at March 31, 2016 and December 31, 2015 was as follows (dollars in thousands): March 31, 2016 December 31, 2015 Amount Percent Amount Percent Originated loans (a): Commercial real estate: Owner occupied $ 270,034 17.4 % $ 263,095 18.1 % Non-owner occupied 455,123 29.1 % 431,379 29.7 % Total commercial real estate loans 725,157 46.5 % 694,474 47.8 % Construction 131,844 8.4 % 119,723 8.2 % Residential real estate 289,426 18.5 % 237,084 16.3 % Commercial and industrial 379,089 24.2 % 363,335 25.0 % Consumer 37,965 2.4 % 38,362 2.7 % Total loans 1,563,481 100.0 % 1,452,978 100.0 % Less: Deferred loan fees (1,805 ) (1,419 ) Reserve for loan losses (24,430 ) (24,415 ) Loans, net $ 1,537,246 $ 1,427,144 Acquired loans (b): Commercial real estate: Owner occupied $ 42,066 19.0 % $ 45,236 19.3 % Non-owner occupied 90,952 41.1 % 95,183 40.5 % Total commercial real estate loans 133,018 60.1 % 140,419 59.8 % Construction 10,429 4.7 % 10,629 4.5 % Residential real estate 55,527 25.1 % 61,306 26.1 % Commercial and industrial 21,077 9.5 % 21,109 9.0 % Consumer 1,301 0.6 % 1,488 0.6 % Total loans $ 221,352 100.0 % $ 234,951 100.0 % Total loans: Commercial real estate: Owner occupied $ 312,100 17.5 % $ 308,331 18.3 % Non-owner occupied 546,075 30.6 % 526,562 31.2 % Total commercial real estate loans 858,175 48.1 % 834,893 49.5 % Construction 142,273 8.0 % 130,352 7.7 % Residential real estate 344,953 19.3 % 298,390 17.7 % Commercial and industrial 400,166 22.4 % 384,444 22.8 % Consumer 39,266 2.2 % 39,850 2.3 % Total loans 1,784,833 100.0 % 1,687,929 100.0 % Less: Deferred loan fees (1,805 ) (1,419 ) Reserve for loan losses (24,430 ) (24,415 ) Loans, net $ 1,758,598 $ 1,662,095 (a) Originated loans are loans organically made through the Company’s normal and customary origination process. (b) Acquired loans are loans acquired in the acquisition of Home Federal Bancorp, Inc. The following describes the distinction between originated and acquired loan portfolios and certain significant accounting policies relevant to each of these portfolios. Originated loans Loans originated for investment are stated at their principal amount outstanding adjusted for partial charge-offs, the reserve for loan losses and net deferred loan fees and costs. Interest income on loans is accrued over the term of the loans. Interest is not accrued on loans where collectability is uncertain. Accrued interest on loans is presented in “Other assets” on the condensed consolidated balance sheet. Loan origination fees and certain direct costs incurred to extend credit are deferred and amortized over the term of the loan as an adjustment to the related loan yield. Approximately 73.4% of the Bank’s originated loan portfolio at March 31, 2016 consisted of real estate-related loans, including construction and development loans, residential mortgage loans, and commercial loans secured by commercial real estate. At March 31, 2016 , approximately 75.4% of the Bank’s total portfolio (inclusive of acquired loans) consisted of real estate-related loans as described above. The Bank’s results of operations and financial condition are affected by general economic trends and in particular, the strength of the local residential and commercial real estate markets in Central, Southern and Northwest Oregon, as well as the greater Boise/Treasure Valley, Idaho and Seattle, Washington metro areas. Real estate values could be affected by, among other things, a worsening of national and local economic conditions, an increase in foreclosures, a decline in home sale volumes, and an increase in interest rates. Furthermore, the Bank may experience an increase in the number of borrowers who become delinquent, file for protection under bankruptcy laws, or default on their loans or other obligations to the Bank in the event of a sustained downturn in business and economic conditions generally or specifically in the principal markets in which the Bank does business. An increase in the number of delinquencies, bankruptcies, or defaults could result in a higher level of non-performing assets, net charge-offs, and loan loss provision. Management expects to diversify its commercial real estate (“CRE”) concentration over time, but real estate-related loans will remain a significant portfolio component due to the nature of the economies, businesses, and markets the Bank serves. In the normal course of business, the Bank may participate portions of loans to third parties in order to extend the Bank’s lending capability or to mitigate risk. At March 31, 2016 and December 31, 2015 , the portion of loans participated to third parties (which are not included in the accompanying condensed consolidated financial statements) totaled $46.3 million and $44.2 million , respectively. Acquired loans Acquired loans are those purchased in the Company’s acquisition of Home Federal Bancorp, Inc. (“Home”), which was completed on May 16, 2014 (the “Acquisition Date”). These loans were recorded at estimated fair value at the Acquisition Date. The fair value estimates for acquired loans are based on expected prepayments, charge-offs and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the acquired loans at acquisition was a reduction of $ 6.0 million , representing a valuation adjustment for interest rate and credit which will be accreted over the life of the loans (approximately 10 years). As of March 31, 2016 , the remaining net fair value adjustment was $2.3 million . Of the loans acquired on the Acquisition Date and still held at March 31, 2016 , $12.4 million , or 5.6% , were graded substandard. With the amount of classified loans acquired being nominal, all loans acquired are treated in a manner consistent with originated loans for credit risk management and accounting purposes. As of March 31, 2016 , $29.1 million , or 13.2% , of the $ 221.4 million in acquired loans were covered under loss sharing agreements with the FDIC (“covered loans”). The agreements were entered into in September 2009 and September 2010 between the FDIC and Home. The loss sharing agreements have limited terms ( 10 years for net losses on single-family residential real estate loans, as defined by the FDIC, five years for losses on non-residential real estate loans, as defined by the FDIC, and an additional three years with respect to recoveries on non-residential real estate loans). After the expiration of the loss sharing agreements, the Company will not be indemnified for losses and related expenses on covered loans. When the loss sharing agreements expire, the Company’s and the Bank’s risk-based capital ratios will be reduced. While the agreements are in place, the covered loans receive a 20% risk-weighting. When the agreements expire, the risk-weighting for previously covered loans will most likely increase to 100% , based on current regulatory capital definitions. Nearly all of the assets remaining in the covered loans portfolios are non-single family covered loans. Therefore, most of the covered loans were no longer indemnified after September 30, 2014 or were no longer indemnified after September 30, 2015. With the amount of classified loans covered under these agreements being nominal, amounts that may be due to or due from the FDIC under loss sharing agreements will be accounted for on a cash basis. A net loss share payable was recorded at the Acquisition Date which represents the estimated value of reimbursement the Company expects to pay to the FDIC for recoveries net of incurred losses on covered loans. These expected reimbursements are recorded as part of covered loans in the accompanying consolidated balance sheets. Upon the determination of an incurred loss or recovery, the loss share receivable/payable will be changed by the amount due to or due from the FDIC. Changes in the loss share payable associated with cov ered loans for the three months ended March 31, 2016 were as follows (dollars in thousands) : Three months ended March 31, 2016 Balance at beginning of period $ 289 Paid to FDIC (289 ) Increase due to impairment — FDIC reimbursement 428 Shared loss expenses (61 ) Adjustments from prior periods — OREO loss carryforward — Balance at end of period $ 367 Reserve for loan losses The reserve for loan losses represents management’s estimate of known and inherent losses in the loan portfolio as of the condensed consolidated balance sheet date and is recorded as a reduction to loans. The reserve for loan losses is increased by charges to operating expense through the loan loss provision, and decreased by loans charged-off, net of recoveries. The reserve for loan losses requires complex subjective judgments as a result of the need to make estimates about matters that are uncertain. The reserve for loan losses is maintained at a level currently considered adequate to provide for potential loan losses based on management’s assessment of various factors affecting the loan portfolio. However, the reserve for loan losses is based on estimates and actual losses may vary from the current estimates. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. Therefore, management cannot provide assurance that, in any particular period, the Company will not have significant losses in relation to the amount reserved. The level of the reserve for loan losses is also determined after consideration of bank regulatory guidance and recommendations and is subject to review by such regulatory authorities who may require increases or decreases to the reserve based on their evaluation of the information available to them at the time of their examinations of the Bank. For purposes of assessing the appropriate level of the reserve for loan losses, the Company analyzes loans and commitments to loan, and the amount of reserves allocated to loans and commitments to loan in each of the following reserve categories: pooled reserves, specifically identified reserves for impaired loans, and the unallocated reserve. Also, for purposes of analyzing loan portfolio credit quality and determining the appropriate level of reserve for loan losses, the Company identifies loan portfolio segments and classes based on the nature of the underlying loan collateral. As of March 31, 2015, the reserve for loan loss methodology was enhanced within the Company’s commercial and industrial (“C&I”) loan portfolio with respect to its holdings of shared national credits (“SNCs”). Risk ratings for individual SNCs are estimated using analysis of both public debt ratings and internal ratings. Expected loss rates are determined based upon historical published specific loss data for similar loans based on average losses and losses stratified by public debt ratings. Public ratings combined with internal risk rates are used to determine a minimum historical loss factor for each SNC loan. This amount may be increased for qualitative conditions including macroeconomic environment and observations by the Company’s SNC management group. The SNC lending strategy is intended to diversify the Company’s credit risk profile geographically and by industry. Additionally, such loans enhance the Company’s interest rate risk profile as they float with LIBOR rates. The increase in the reserve for loan losses from December 31, 2015 to March 31, 2016 was related to net recoveries during the period. The unallocated reserve for loan losses at March 31, 2016 has increased $ 1.2 million from the balance at December 31, 2015 . Management believes that the amount of unallocated reserve for loan losses is appropriate and will continue to evaluate the amount going forward. Acquired reserve for loan losses The fair value estimates for acquired loans are based on expected prepayments, charge-offs, and the amount and timing of undiscounted expected principal, interest and other cash flows. The net fair value adjustment to the acquired loans was $ 6.0 million , representing a valuation adjustment for interest rate and credit quality. The credit portion of the fair value adjustment not accreted at any point in time represents the estimated reserve for loan losses for acquired loans. If the Company determines that this amount is insufficient, a provision to the reserve for loan losses will be made. As of March 31, 2016 , the remaining net fair value adjustment was $2.3 million . Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the three months ended March 31, 2016 and 2015 were as follows (dollars in thousands): Commercial Construction Residential Commercial Consumer Unallocated Total For the three months ended March 31, 2016 Allowance for Loan Losses Balance at December 31, 2015 $ 3,934 $ 1,044 $ 2,075 $ 13,969 $ 917 $ 2,476 $ 24,415 Loan loss provision (credit) (2,776 ) 16 204 1,129 265 1,162 — Recoveries 2,728 38 131 159 264 — 3,320 Loans charged off (40 ) — (18 ) (2,760 ) (487 ) — (3,305 ) Balance at end of period $ 3,846 $ 1,098 $ 2,392 $ 12,497 $ 959 $ 3,638 $ 24,430 Reserve for unfunded lending commitments Balance at December 31, 2015 $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Provision for unfunded loan commitments — — — — — — — Balance at end of period $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Reserve for credit losses Reserve for loan losses $ 3,846 $ 1,098 $ 2,392 $ 12,497 $ 959 $ 3,638 $ 24,430 Reserve for unfunded lending commitments 48 268 25 75 24 — 440 Total reserve for credit losses $ 3,894 $ 1,366 $ 2,417 $ 12,572 $ 983 $ 3,638 $ 24,870 Commercial Construction Residential Commercial Consumer Unallocated Total For the three months ended March 31, 2015 Allowance for Loan Losses Balance at December 31, 2014 $ 5,614 $ 1,133 $ 2,121 $ 6,844 $ 1,047 $ 5,294 $ 22,053 Loan loss provision (credit) (3,947 ) 23 276 4,436 147 (2,935 ) (2,000 ) Recoveries 3,390 99 325 211 115 — 4,140 Loans charged off (276 ) — (210 ) (132 ) (331 ) — (949 ) Balance at end of period $ 4,781 $ 1,255 $ 2,512 $ 11,359 $ 978 $ 2,359 $ 23,244 Reserve for unfunded lending commitments Balance at December 31, 2014 $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Provision for unfunded loan commitments — — — — — — — Balance at end of period $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Reserve for credit losses Reserve for loan losses $ 4,781 $ 1,255 $ 2,512 $ 11,359 $ 978 $ 2,359 $ 23,244 Reserve for unfunded lending commitments 48 268 25 75 24 — 440 Total reserve for credit losses $ 4,829 $ 1,523 $ 2,537 $ 11,434 $ 1,002 $ 2,359 $ 23,684 An individual loan is impaired when, based on current information and events, management believes that it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. The following table presents the reserve for loan losses and the recorded investment in loans by portfolio segment and impairment evaluation method at March 31, 2016 and December 31, 2015 (dollars in thousands): Reserve for loan losses Recorded investment in loans Individually Collectively Total Individually Collectively Total March 31, 2016 Commercial real estate $ 57 $ 3,789 $ 3,846 $ 5,132 $ 853,043 $ 858,175 Construction — 1,098 1,098 — 142,273 142,273 Residential real estate — 2,392 2,392 — 344,953 344,953 Commercial and industrial 144 12,353 12,497 7,677 392,489 400,166 Consumer — 959 959 — 39,266 39,266 $ 201 $ 20,591 20,792 $ 12,809 $ 1,772,024 $ 1,784,833 Unallocated 3,638 $ 24,430 December 31, 2015 Commercial real estate $ 78 $ 3,856 $ 3,934 $ 3,835 $ 831,058 $ 834,893 Construction — 1,044 1,044 365 129,987 130,352 Residential real estate — 2,075 2,075 18 298,372 298,390 Commercial and industrial 164 13,805 13,969 2,724 381,720 384,444 Consumer — 917 917 — 39,850 39,850 $ 242 $ 21,697 21,939 $ 6,942 $ 1,680,987 $ 1,687,929 Unallocated 2,476 $ 24,415 The above reserve for loan losses includes an unallocated allowance of $ 3.6 million at March 31, 2016 and $ 2.5 million at December 31, 2015 . The change in the unallocated allowance is mainly due to uncertainty associated with risk inherent in entering new loan markets and/or geographies, as well as, general uncertainty related to growth and economic conditions. The Company uses credit risk ratings, which reflect the Bank’s assessment of a loan’s risk or loss potential, for purposes of assessing the appropriate level of reserve for loan losses. The Bank’s credit risk rating definitions along with applicable borrower characteristics for each credit risk rating are as follows: Acceptable The borrower is a reasonable credit risk and demonstrates the ability to repay the loan from normal business operations. Loans are generally made to companies operating in an economy and/or industry that is generally sound. The borrower tends to operate in regional or local markets and has achieved sufficient revenues for the business to be financially viable. The borrowers financial performance has been consistent in normal economic times and has been average or better than average for its industry. A loan can also be considered Acceptable even though the borrower may have some vulnerability to downturns in the economy due to marginally satisfactory working capital and debt service cushion. Availability of alternate financing sources may be limited or nonexistent. In some cases, the borrower’s management may have limited depth or continuity but is still considered capable. An adequate primary source of repayment is identified while secondary sources may be illiquid, more speculative, less readily identified, or reliant upon collateral liquidation. Loan agreements will be well defined, including several financial performance covenants and detailed operating covenants. This category also includes commercial loans to individuals with average or better than average capacity to repay. Pass-Watch Loans are graded Pass-Watch when temporary situations increase the level of the Bank’s risk associated with the loan, and remain graded Pass-Watch until the situation has been corrected. These situations may involve one or more weaknesses in cash flow, collateral value or indebtedness that could, if not corrected within a reasonable period of time, jeopardize the full repayment of the debt. In general, loans in this category remain adequately protected by the borrower’s net worth and paying capacity, or pledged collateral. Special Mention A Special Mention credit has potential weaknesses that may, if not checked or corrected, weaken the loan or leave the Bank inadequately protected at some future date. Loans in this category are deemed by management of the Bank to be currently protected but reflect potential problems that warrant more than the usual management attention but do not justify a Substandard classification. Substandard Substandard loans are those inadequately protected by the net worth and paying capacity of the obligor and/or by the value of the pledged collateral, if any. Substandard loans have a high probability of payment default or they have other well-defined weaknesses. They require more intensive supervision and borrowers are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization. Repayment may depend on collateral or other credit risk mitigants. CRE and construction loans are classified Substandard when well-defined weaknesses are present which jeopardize the orderly liquidation of the loan. Well-defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time, and/or the project’s failure to fulfill economic expectations. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Substandard loans also include impaired loans. Impaired loans bear the characteristics of Substandard loans as described above, and the Company has determined it does not expect timely payment of all contractually due interest and principal. Impaired loans may be adequately secured by collateral. During the three months ended March 31, 2016 , the Bank saw relatively steady credit quality metrics. An improvement in Special Mention loans was partially offset by an increase in the Substandard portfolio. Increases in the Substandard loan balances were largely due to certain energy/mining sector shared national credits, included in C&I loans. Aggregate portfolio exposure to the energy/mining sector is less than 1% of total loans outstanding. The following table presents, by portfolio class, the recorded investment in loans by internally assigned grades at March 31, 2016 and December 31, 2015 (dollars in thousands): Loan grades Acceptable Pass-Watch Special Mention Substandard Total March 31, 2016 Originated loans (a): Commercial real estate: Owner occupied $ 252,661 $ 8,715 $ 1,599 $ 7,059 $ 270,034 Non-owner occupied 438,127 8,917 3,488 4,591 455,123 Total commercial real estate loans 690,788 17,632 5,087 11,650 725,157 Construction 131,844 — — — 131,844 Residential real estate 288,820 — — 606 289,426 Commercial and industrial 335,841 15,127 3,326 24,795 379,089 Consumer 37,954 — — 11 37,965 $ 1,485,247 $ 32,759 $ 8,413 $ 37,062 $ 1,563,481 Acquired loans (b): Commercial real estate: Owner occupied $ 36,551 $ 2,088 $ 2,342 $ 1,085 $ 42,066 Non-owner occupied 71,612 557 9,295 9,488 90,952 Total commercial real estate loans 108,163 2,645 11,637 10,573 133,018 Construction 10,400 — — 29 10,429 Residential real estate 54,371 — — 1,156 55,527 Commercial and industrial 20,308 99 — 670 21,077 Consumer 1,301 — — — 1,301 $ 194,543 $ 2,744 $ 11,637 $ 12,428 $ 221,352 Total loans: Commercial real estate: Owner occupied $ 289,212 $ 10,803 $ 3,941 $ 8,144 $ 312,100 Non-owner occupied 509,739 9,474 12,783 14,079 546,075 Total commercial real estate loans 798,951 20,277 16,724 22,223 858,175 Construction 142,244 — — 29 142,273 Residential real estate 343,191 — — 1,762 344,953 Commercial and industrial 356,149 15,226 3,326 25,465 400,166 Consumer 39,255 — — 11 39,266 $ 1,679,790 $ 35,503 $ 20,050 $ 49,490 $ 1,784,833 (a) Originated loans are loans organically made through the Company’s normal and customary origination process. (b) Acquired loans are loans acquired in the acquisition of Home. Loan grades Acceptable Pass-Watch Special Substandard Total December 31, 2015 Originated loans (a): Commercial real estate: Owner occupied $ 243,113 $ 8,623 $ 1,426 $ 9,933 $ 263,095 Non-owner occupied 411,137 9,825 4,522 5,895 431,379 Total commercial real estate loans 654,250 18,448 5,948 15,828 694,474 Construction 118,752 — 971 — 119,723 Residential real estate 236,574 — — 510 237,084 Commercial and industrial 328,934 11,220 13,729 9,452 363,335 Consumer 38,350 — — 12 38,362 $ 1,376,860 $ 29,668 $ 20,648 $ 25,802 $ 1,452,978 Acquired loans (b): Commercial real estate: Owner occupied $ 34,081 $ 3,480 $ 7,341 $ 334 $ 45,236 Non-owner occupied 71,334 2,751 9,386 11,712 95,183 Total commercial real estate loans 105,415 6,231 16,727 12,046 140,419 Construction 10,597 — — 32 10,629 Residential real estate 60,151 — — 1,155 61,306 Commercial and industrial 17,034 153 3,461 461 21,109 Consumer 1,485 — — 3 1,488 $ 194,682 $ 6,384 $ 20,188 $ 13,697 $ 234,951 Total loans: Commercial real estate: Owner occupied $ 277,194 $ 12,103 $ 8,767 $ 10,267 $ 308,331 Non-owner occupied 482,471 12,576 13,908 17,607 526,562 Total commercial real estate loans 759,665 24,679 22,675 27,874 834,893 Construction 129,349 — 971 32 130,352 Residential real estate 296,725 — — 1,665 298,390 Commercial and industrial 345,968 11,373 17,190 9,913 384,444 Consumer 39,835 — — 15 39,850 $ 1,571,542 $ 36,052 $ 40,836 $ 39,499 $ 1,687,929 (a) Originated loans are loans organically made through the Company’s normal and customary origination process. (b) Acquired loans are loans acquired in the acquisition of Home. The following table presents, by portfolio class, an age analysis of past due loans, including loans placed on non-accrual at March 31, 2016 and December 31, 2015 (dollars in thousands): 30-89 days past due 90 days or more past due Total past due Current Total loans March 31, 2016 Originated loans (a): Commercial real estate: Owner occupied $ — $ 719 $ 719 $ 269,315 $ 270,034 Non-owner occupied — — — 455,123 455,123 Total commercial real estate loans — 719 719 724,438 725,157 Construction — — — 131,844 131,844 Residential real estate 1,001 93 1,094 288,332 289,426 Commercial and industrial 3,526 237 3,763 375,326 379,089 Consumer 127 11 138 37,827 37,965 $ 4,654 $ 1,060 $ 5,714 $ 1,557,767 $ 1,563,481 Acquired loans (b): Commercial real estate: Owner occupied $ 37 $ — $ 37 $ 42,029 $ 42,066 Non-owner occupied 124 — 124 90,828 90,952 Total commercial real estate loans 161 — 161 132,857 133,018 Construction 29 — 29 10,400 10,429 Residential real estate 654 520 1,174 54,353 55,527 Commercial and industrial 236 10 246 20,831 21,077 Consumer 16 — 16 1,285 1,301 $ 1,096 $ 530 $ 1,626 $ 219,726 $ 221,352 Total loans: Commercial real estate: Owner occupied $ 37 $ 719 $ 756 $ 311,344 $ 312,100 Non-owner occupied 124 — 124 545,951 546,075 Total commercial real estate loans 161 719 880 857,295 858,175 Construction 29 — 29 142,244 142,273 Residential real estate 1,655 613 2,268 342,685 344,953 Commercial and industrial 3,762 247 4,009 396,157 400,166 Consumer 143 11 154 39,112 39,266 $ 5,750 $ 1,590 $ 7,340 $ 1,777,493 $ 1,784,833 December 31, 2015 Originated loans (a): Commercial real estate: Owner occupied $ 1,020 $ 719 $ 1,739 $ 261,356 $ 263,095 Non-owner occupied 593 — 593 430,786 431,379 Total commercial real estate loans 1,613 719 2,332 692,142 694,474 Construction — — — 119,723 119,723 Residential real estate 196 — 196 236,888 237,084 Commercial and industrial 346 239 585 362,750 363,335 Consumer 209 12 221 38,141 38,362 $ 2,364 $ 970 $ 3,334 $ 1,449,644 $ 1,452,978 Acquired loans (b): Commercial real estate: Owner occupied $ — $ — $ — $ 45,236 $ 45,236 Non-owner occupied 2,049 — 2,049 93,134 95,183 Total commercial real estate loans 2,049 — 2,049 138,370 140,419 Construction 46 — 46 10,583 10,629 Residential real estate 748 534 1,282 60,024 61,306 Commercial and industrial 6 5 11 21,098 21,109 Consumer 53 — 53 1,435 1,488 $ 2,902 $ 539 $ 3,441 $ 231,510 $ 234,951 Total loans: Commercial real estate: Owner occupied $ 1,020 $ 719 $ 1,739 $ 306,592 $ 308,331 Non-owner occupied 2,642 — 2,642 523,920 526,562 Total commercial real estate loans 3,662 719 4,381 830,512 834,893 Construction 46 — 46 130,306 130,352 Residential real estate 944 534 1,478 296,912 298,390 Commercial and industrial 352 244 596 383,848 384,444 Consumer 262 12 274 39,576 39,850 $ 5,266 $ 1,509 $ 6,775 $ 1,681,154 $ 1,687,929 (a) Originated loans are loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Acquired loans are loans acquired in the acquisition of Home. Loans contractually past due 90 days or more on which the Company continued to accrue interest were $0.03 million and $0.1 million at March 31, 2016 and December 31, 2015 , respectively. The following table presents information related to impaired loans, by portfolio class, at March 31, 2016 and December 31, 2015 (dollars in thousands): Impaired loans With a related allowance Without a related allowance Total recorded balance Unpaid principal balance Related allowance March 31, 2016 Commercial real estate: Owner occupied $ 589 $ 1,974 $ 2,563 $ 3,649 $ 52 Non-owner occupied 638 1,931 2,569 2,568 5 Total commercial real estate loans 1,227 3,905 5,132 6,217 57 Construction — — — — — Residential real estate — — — — — Commercial and industrial 270 7,407 7,677 11,050 144 Consumer — — — — — $ 1,497 $ 11,312 $ 12,809 $ 17,267 $ 201 December 31, 2015 Commercial real estate: Owner occupied $ 1,032 $ 2,157 $ 3,189 $ 4,285 $ 73 Non-owner occupied 646 — 646 646 5 Total commercial real estate loans 1,678 2,157 3,835 4,931 78 Construction — 365 365 365 — Residential real estate — 18 18 18 — Commercial and industrial 2,539 185 2,724 3,366 164 Consumer — — — — — $ 4,217 $ 2,725 $ 6,942 $ 8,680 $ 242 The increase in impaired C&I loans relates to energy/mining shared national credits. Aggregate portfolio exposure to the energy/mining sector is less than 1% of total loans outstanding. At March 31, 2016 and December 31, 2015 , the total recorded balance of impaired loans in the above table included $0 million and $0.8 million , respectively, of troubled debt restructuring (“TDR”) loans which were not on non-accrual status. The following table presents, by portfolio class, the average recorded investment in impaired loans for the three months ended March 31, 2016 and 2015 (dollars in thousands): Three Months Ended March 31, 2016 2015 Commercial real estate: Owner occupied $ 2,876 $ 4,804 Non-owner occupied 1,607 22,817 Total commercial real estate loans 4,483 27,621 Construction 183 853 Residential real estate 9 229 Commercial and industrial 5,201 3,259 Consumer — — $ 9,876 $ 31,962 Interest income recognized for cash payments received on impaired loans for the three months ended March 31, 2016 was $0.1 million . Information with respect to the Company’s non-performing loans, by portfolio class, at March 31, 2016 and December 31, 2015 is as follows (dollars in thousands): March 31, 2016 December 31, 2015 Commercial real estate: Owner occupied $ 1,961 $ 2,742 Non-owner occupied 320 434 Total commercial real estate loans 2,281 3,176 Construction — — Residential real estate 1,512 1,427 Commercial and industrial 7,542 447 Consumer — 3 Total non-accrual loans $ 11,335 $ 5,053 Accruing loans which are contractually past due 90 days or more: Commercial and industrial 18 56 Consumer 11 12 Total accruing loans which are contractually past due 90 days or more $ 29 $ 68 TDRs The Company allocated no specific reserves to customers whose loan terms have been modified in TDRs as of March 31, 2016 and December 31, 2015 , respectively. TDRs involve the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. As indicated above, TDRs may also include loans to borrowers experiencing financial distress that renewed at existing contractual rates, but below market rates for comparable credit quality. The Company has been actively utilizing these programs and working with its customers to improve obligor cash flow and related prospect for repayment. Concessions may include, but are not limited to, interest rate reductions, principal forgiveness, deferral of interest payments, extension of the maturity date, and other actions intended to minimize potential losses to the Company. For each commercial loan restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the new structure can be successful and whether cash flows will be sufficient to support the restructured debt. Generally, if the loan is on accrual status at the time of restructuring, it will remain on accrual status after the restructuring. After six consecutive payments under the restructured terms, a non-accrual restructured loan is reviewed for possible upgrade to accrual status. Typically, once a loan is identified as a TDR it will retain that designation until it is paid off, because restructured loans generally are not at market rates following restructuring. Under certain circumstances, a TDR may be removed from TDR status if it is determined to no longer be impaired and the loan is at a competitive interest rate. Under such circumstances, allowance allocations for loans removed from TDR status would be based on the historical allocation for the applicable loan grade and loan class. The following table presents, by portfolio segment, the information with respect to the Company’s loans that were modified and recorded as TDRs during the three months ended March 31, 2016 and 2015 (dollars in thousands). Three months ended March 31, 2016 2015 Number of TDR outstanding Number of TDR outstanding Commercial real estate — $ — — $ — Construction — — — — Residential real estate — — — — Commercial and industrial 1 22 — — Consumer — — — — 1 $ 22 — $ — At both March 31, 2016 and 2015 , the Company had no remaining commitments to lend on loans accounted for as TDRs. The following table presents, by portfolio segment, the post modification recorded investment for TDRs restructured during the three mon |
