| Loans and reserve for credit losses | Loans and reserve for credit losses Loans receivable at December 31, 2016 and 2015 consisted of the following (dollars in thousands): 2016 2015 Amount Percent Amount Percent Originated loans (a): Commercial real estate: Owner occupied $ 298,721 16.4 % $ 263,095 18.1 % Non-owner occupied 514,363 28.3 % 431,379 29.7 % Total commercial real estate loans 813,084 44.7 % 694,474 47.8 % Construction 200,654 11.0 % 119,723 8.2 % Residential real estate 377,374 20.7 % 237,084 16.3 % Commercial and industrial 386,150 21.2 % 363,335 25.0 % Consumer 42,072 2.4 % 38,362 2.7 % Total loans 1,819,334 100.0 % 1,452,978 100.0 % Less: Deferred loan fees, net (1,764 ) (1,419 ) Reserve for loan losses (25,290 ) (24,415 ) Loans, net $ 1,792,280 $ 1,427,144 Acquired loans (b): Commercial real estate: Owner occupied $ 92,490 32.5 % $ 45,236 19.3 % Non-owner occupied and other 98,034 34.4 % 95,183 40.5 % Total commercial real estate loans 190,524 66.9 % 140,419 59.8 % Construction 10,384 3.6 % 10,629 4.5 % Residential real estate 54,468 19.1 % 61,306 26.1 % Commercial and industrial 28,286 9.9 % 21,109 9.0 % Consumer 1,416 0.5 % 1,488 0.6 % Total loans 285,078 100.0 % 234,951 100.0 % Total loans: Commercial real estate: Owner occupied $ 391,211 18.6 % $ 308,331 18.3 % Non-owner occupied and other 612,397 29.1 % 526,562 31.2 % Total commercial real estate loans 1,003,608 47.7 % 834,893 49.5 % Construction 211,038 10.0 % 130,352 7.7 % Residential real estate 431,842 20.5 % 298,390 17.7 % Commercial and industrial 414,436 19.7 % 384,444 22.8 % Consumer 43,488 2.1 % 39,850 2.3 % Total loans 2,104,412 100.0 % 1,687,929 100.0 % Less: Deferred loan fees (1,764 ) (1,419 ) Reserve for loan losses (25,290 ) (24,415 ) Loans, net $ 2,077,358 $ 1,662,095 (a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Loans acquired in the Home merger and PPFS merger. 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, net of any premium or discount, 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 consolidated balance sheets. 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 76.4% of the Bank’s originated loan portfolio at December 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 December 31, 2016 , approximately 78.2% 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 and the greater Boise/Treasure Valley, Idaho and Seattle, Washington 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 is targeting to reduce commercial real estate (“CRE”) concentration over the long term, but real estate-related loans will remain a significant portfolio component due to the nature of the economies, businesses, and markets we serve. The Company originates C&I loans mainly to businesses in its footprint. Repayment of such loans is dependent upon future cash flows of the obligor businesses that are subject to various industry sector risk. In addition, the Company has purchased C&I participations typically referred to as SNCs. The SNC portfolio 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. C&I loans are subject to the variety of credit risks described above but they are not directly secured by real estate. In the normal course of business, the Bank may buy or participate portions of loans to third parties in order to extend the Bank’s lending capability or to mitigate risk. At December 31, 2016 and 2015 , the portion of loans participated to third-parties (which are not included in the accompanying consolidated balance sheets) totaled $128.8 million and $44.2 million , respectively. At December 31, 2016 and 2015 , purchased loan participations totaled $145.3 million and $179.2 million , respectively. Acquired loans PPFS Acquired loans include those loans purchased by the Company in the PPFS merger. These loans were recorded at estimated fair value at the PPFS 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 PPFS acquired loans at acquisition was a reduction of $2.5 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 December 31, 2016 , the remaining net fair value adjustment to the PPFS acquired loans was $1.7 million . Home Acquired loans also include those loans purchased by the Company in the Home merger. These loans were recorded at estimated fair value at the Home 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 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 December 31, 2016 , the remaining net fair value adjustment was $1.6 million . Of the PPFS and Home loans acquired on the PPFS Acquisition Date and Home Acquisition Date, as applicable, and still held at December 31, 2016 , $8.0 million or 2.8% 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 December 31, 2016 , $21.6 million , or 7.6% , of the $285.1 million in acquired loans were covered under loss sharing agreements with the FDIC. 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 in September 2014 and 2015, the Company is no longer indemnified for losses and related expenses on covered assets and the risk-based capital ratios have been reduced. While the agreements were in place, the covered assets received a 20% risk-weighting. After the agreements expired, the risk-weighting for previously covered assets most likely increases to 100% , based on current regulatory capital definitions. Nearly all of the assets remaining in the covered asset portfolios are non-single family covered assets. Therefore, most of the covered assets were no longer indemnified after September 2014 or September 2015 . With the amount of 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 Home 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 were recorded as part of covered loans in conjunction with the Home merger accounting. Upon the determination of an incurred loss or recovery, the loss share receivable/payable is changed by the amount due to or due from the FDIC. Changes in the loss share payable (receivable) associated with covered loans for the year ended December 31, 2016 were as follows (dollars in thousands): Year ended December 31, 2016 Balance at beginning of period $ 289 Paid to FDIC (1,224 ) Increase due to impairment (53 ) FDIC reimbursement 1,156 Shared loss expenses (96 ) Adjustments from prior periods 4 Balance at end of period $ 76 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 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. The increase in the reserve for loan losses from December 31, 2015 to December 31, 2016 was related to net recoveries during the period. The unallocated reserve for loan losses at December 31, 2016 has decreased by $0.9 million from the balance at December 31, 2015. The Company has determined the level of unallocated reserve is appropriate based upon the lack of seasoning with respect to its methodology enhancements, including qualitative adjustments with respect to concentration risk and estimating reserves against certain loan pools and industries as opposed to reserving on a loan by loan basis for such loans. In addition, the unallocated reflects the lack of seasoning as to credit quality performance of its recently acquired PPFS, Home and SNCs portfolios. 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 and $2.5 million for Home and PPFS, respectively, at the time of the applicable acquisition representing a valuation adjustment for interest rate and credit quality. The credit component 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. Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the years ended December 31, 2016 , 2015 and 2014 were as follows (dollars in thousands): Commercial Construction Residential Commercial Consumer Unallocated Total 2016 Reserve for loan losses Balance at beginning of year $ 3,934 $ 1,044 $ 2,075 $ 13,969 $ 917 $ 2,476 $ 24,415 Loan loss provision (credit) (530 ) 784 1,072 (1,708 ) 1,270 (888 ) — Recoveries 2,957 368 288 1,470 920 — 6,003 Loans charged off (40 ) — (110 ) (3,074 ) (1,904 ) — (5,128 ) Balance at end of year $ 6,321 $ 2,196 $ 3,325 $ 10,657 $ 1,203 $ 1,588 $ 25,290 Reserve for unfunded lending commitments Balance at beginning of year $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Provision (credit) for unfunded loan commitments — — — — — — — Balance at end of year $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Reserve for credit losses Reserve for loan losses $ 6,321 $ 2,196 $ 3,325 $ 10,657 $ 1,203 $ 1,588 $ 25,290 Reserve for unfunded lending commitments 48 268 25 75 24 — 440 Total reserve for credit losses $ 6,369 $ 2,464 $ 3,350 $ 10,732 $ 1,227 $ 1,588 $ 25,730 Commercial Construction Residential Commercial Consumer Unallocated Total 2015 Reserve for loan losses Balance at beginning of year $ 5,614 $ 1,133 $ 2,121 $ 6,844 $ 1,047 $ 5,294 $ 22,053 Loan loss provision (credit) (5,552 ) (525 ) (494 ) 4,682 707 (2,818 ) (4,000 ) Recoveries 4,150 436 850 3,820 618 — 9,874 Loans charged off (278 ) — (402 ) (1,377 ) (1,455 ) — (3,512 ) Balance at end of year $ 3,934 $ 1,044 $ 2,075 $ 13,969 $ 917 $ 2,476 $ 24,415 Reserve for unfunded lending commitments Balance at beginning of year $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Provision (credit) for unfunded loan commitments — — — — — — — Balance at end of year $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Reserve for credit losses Reserve for loan losses $ 3,934 $ 1,044 $ 2,075 $ 13,969 $ 917 $ 2,476 $ 24,415 Reserve for unfunded lending commitments 48 268 25 75 24 — 440 Total reserve for credit losses $ 3,982 $ 1,312 $ 2,100 $ 14,044 $ 941 $ 2,476 $ 24,855 Commercial Construction Residential Commercial Consumer Unallocated Total 2014 Reserve for loan losses Balance at beginning of year $ 9,565 $ 535 $ 2,381 $ 6,261 $ 1,401 $ 714 $ 20,857 Loan loss provision (credit) (4,484 ) (348 ) (315 ) (12 ) 579 4,580 — Recoveries 1,801 1,242 929 2,158 309 — 6,439 Loans charged off (1,268 ) (296 ) (874 ) (1,563 ) (1,242 ) — (5,243 ) Balance at end of year $ 5,614 $ 1,133 $ 2,121 $ 6,844 $ 1,047 $ 5,294 $ 22,053 Reserve for unfunded lending commitments Balance at beginning of year $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Provision (credit) for unfunded loan commitments — — — — — — — Balance at end of year $ 48 $ 268 $ 25 $ 75 $ 24 $ — $ 440 Reserve for credit losses Reserve for loan losses $ 5,614 $ 1,133 $ 2,121 $ 6,844 $ 1,047 $ 5,294 $ 22,053 Reserve for unfunded lending commitments 48 268 25 75 24 — 440 Total reserve for credit losses $ 5,662 $ 1,401 $ 2,146 $ 6,919 $ 1,071 $ 5,294 $ 22,493 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 December 31, 2016 and 2015 (dollars in thousands). As the acquired loan portfolio is covered by the valuation adjustment taken at the time of acquisition and as the original mark continues to be more than sufficient, impaired acquired loans are excluded from the individually evaluated for impairment amounts below. Reserve for loan losses Recorded investment in loans Individually evaluated for impairment Collectively evaluated for impairment Total Individually evaluated for impairment Collectively evaluated for impairment Total 2016 Commercial real estate $ — $ 6,321 $ 6,321 $ 640 $ 1,002,968 $ 1,003,608 Construction — 2,196 2,196 — 211,038 211,038 Residential real estate — 3,325 3,325 — 431,842 431,842 Commercial and industrial 2,000 8,657 10,657 7,034 407,402 414,436 Consumer — 1,203 1,203 — 43,488 43,488 $ 2,000 $ 21,702 23,702 $ 7,674 $ 2,096,738 $ 2,104,412 Unallocated 1,588 $ 25,290 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 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. In addition, 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 year ended December 31, 2016 the Bank reduced loans classified as special mention and substandard in the originated portfolio by $10.2 million , while total loans classified as special mention and substandard decreased $26.5 million . Remediation on the originated portfolio was accomplished through credit upgrades mainly owing to improved obligor cash flows as well as payoffs/paydowns, and/or sales. Work began on the acquired loan portfolio at the PPFS and Home Acquisition Dates. The following table presents, by portfolio class, the recorded investment in loans by internally assigned grades at December 31, 2016 and 2015 (dollars in thousands): Loan grades Acceptable Pass-Watch Special Mention Substandard Total 2016 Originated loans (a): Commercial real estate: Owner occupied $ 282,438 $ 9,007 $ 1,302 $ 5,974 $ 298,721 Non-owner occupied 506,946 2,234 4,180 1,003 514,363 Total commercial real estate loans 789,384 11,241 5,482 6,977 813,084 Construction 200,278 — — 376 200,654 Residential real estate 376,713 — — 661 377,374 Commercial and industrial 351,914 11,472 5,452 17,312 386,150 Consumer 42,060 — — 12 42,072 $ 1,760,349 $ 22,713 $ 10,934 $ 25,338 $ 1,819,334 Acquired loans (b): Commercial real estate: Owner occupied $ 85,868 $ 3,222 $ 1,663 $ 1,737 $ 92,490 Non-owner occupied 81,494 3,967 7,962 4,611 98,034 Total commercial real estate loans 167,362 7,189 9,625 6,348 190,524 Construction 10,331 — — 53 10,384 Residential real estate 51,489 1,988 — 991 54,468 Commercial and industrial 27,636 64 — 586 28,286 Consumer 1,416 — — — 1,416 $ 258,234 $ 9,241 $ 9,625 $ 7,978 $ 285,078 Total loans: Commercial real estate: Owner occupied $ 368,306 $ 12,229 $ 2,965 $ 7,711 $ 391,211 Non-owner occupied 588,440 6,201 12,142 5,614 612,397 Total commercial real estate loans 956,746 18,430 15,107 13,325 1,003,608 Construction 210,609 — — 429 211,038 Residential real estate 428,202 1,988 — 1,652 431,842 Commercial and industrial 379,550 11,536 5,452 17,898 414,436 Consumer 43,476 — — 12 43,488 $ 2,018,583 $ 31,954 $ 20,559 $ 33,316 $ 2,104,412 2015 Originated (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) Loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Loans acquired in the Home merger and PPFS merger. The following table presents, by portfolio class, an age analysis of past du e loans, including loans placed on non-accrual at December 31, 2016 and 2015 (dollars in thousands): 30-89 days 90 days Total Current Total 2016 Originated loans (a): Commercial real estate: Owner occupied $ 205 $ 490 $ 695 $ 298,026 $ 298,721 Non-owner occupied 100 — 100 514,263 514,363 Total commercial real estate loans 305 490 795 812,289 813,084 Construction 97 376 473 200,181 200,654 Residential real estate 1,488 — 1,488 375,886 377,374 Commercial and industrial 290 338 628 385,522 386,150 Consumer 322 12 334 41,738 42,072 $ 2,502 $ 1,216 $ 3,718 $ 1,815,616 $ 1,819,334 Acquired loans (b): Commercial real estate: Owner occupied $ 317 $ — $ 317 $ 92,173 $ 92,490 Non-owner occupied — — — 98,034 98,034 Total commercial real estate loans 317 — 317 190,207 190,524 Construction — 17 17 10,367 10,384 Residential real estate 2,053 543 2,596 51,872 54,468 Commercial and industrial 257 — 257 28,029 28,286 Consumer 9 — 9 1,407 1,416 $ 2,636 $ 560 $ 3,196 $ 281,882 $ 285,078 Total loans: Commercial real estate: Owner occupied $ 522 $ 490 $ 1,012 $ 390,199 $ 391,211 Non-owner occupied 100 — 100 612,297 612,397 Total commercial real estate loans 622 490 1,112 1,002,496 1,003,608 Construction 97 393 490 210,548 211,038 Residential real estate 3,541 543 4,084 427,758 431,842 Commercial and industrial 547 338 885 413,551 414,436 Consumer 331 12 343 43,145 43,488 $ 5,138 $ 1,776 $ 6,914 $ 2,097,498 $ 2,104,412 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) Loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Loans acquired in the Home merger and PPFS merger. Loans contractually past due 90 days or more on which the Company continued to accrue interest were $0.02 million and $0.07 million at December 31, 2016 and 2015 , respectively. The following table presents information related to impaired loans, by portfolio class, at December 31, 2016 and 2015 (dollars in thousands): Impaired loans With a Without a Total Unpaid Related 2016 Commercial real estate: Owner occupied $ — $ 640 $ 640 $ 1,077 $ — Non-owner occupied — — — — — Total commercial real estate loans — 640 640 1,077 — Construction — — — — — Residential real estate — — — — — Commercial and industrial 6,701 333 7,034 10,359 2,000 Consumer — — — — — $ 6,701 $ 973 $ 7,674 $ 11,436 $ 2,000 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 At December 31, 2016 , the total recorded balance of impaired loans in the above table included no TDR loans which were not on non-accrual status and at December 31, 2015 , the total recorded balance of impaired loans in the above table included $0.8 million 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 years ended December 31, 2016 , 2015 and 2014 (dollars in thousands): Year ended 2016 2015 2014 Commercial real estate: Owner occupied $ 1,757 $ 3,216 $ 6,115 Non-owner occupied 1,905 6,384 22,699 Total commercial real estate loans 3,662 9,600 28,814 Construction — 499 1,157 Residential real estate — 54 381 Commercial and industrial 7,409 2,793 4,015 Consumer — — — $ 11,071 $ 12,946 $ 34,367 Interest income recognized for cash payments received on impaired loans for the years ended December 31, 2016 and 2015 was $1.1 million and $0.6 million , respectively, and for the year ended December 31, 2014 was insignificant . Information with respect to the Company’s non-accrual loans, by portfolio class, at December 31, 2016 and 2015 is as follows (dollars in thousands): 2016 2015 Commercial real estate: Owner occupied $ 1,739 $ 2,742 Non-owner occupied 2,659 434 Total commercial real estate loans 4,398 3,176 Construction 429 — Residential real estate 1,598 1,427 Commercial and industrial 7,270 447 Consumer — 3 Total non-accrual loans $ 13,695 $ 5,053 Accruing loans which are contractually past due 90 days or more: Commercial and industrial 5 56 Consumer 12 12 Total accruing loans which are contractually past due 90 days or more $ 17 $ 68 TDRs The Company allocated no specific reserves to customers whose loan terms have been modified in TDRs as of December 31, 2016 and as of December 31, 2015 . 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 at the time of restructuring, it will remain on accrual after the restructuring. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accrual status. Typically, once a loan is identified as a TDR it will r |
