| Loans and reserve for credit losses | Loans and reserve for credit losses The composition of the loan portfolio at March 31, 2017 and December 31, 2016 was as follows (dollars in thousands): March 31, 2017 December 31, 2016 Amount Percent Amount Percent Originated loans (a): Commercial real estate: Owner occupied $ 297,105 16.0 % $ 298,721 16.4 % Non-owner occupied 529,025 28.5 % 514,363 28.3 % Total commercial real estate loans 826,130 44.5 % 813,084 44.7 % Construction 212,812 11.5 % 200,654 11.0 % Residential real estate 387,507 20.9 % 377,374 20.7 % Commercial and industrial 387,548 20.9 % 386,150 21.2 % Consumer 41,293 2.2 % 42,072 2.4 % Total loans 1,855,290 100.0 % 1,819,334 100.0 % Less: Deferred loan fees (2,041 ) (1,764 ) Reserve for loan losses (25,357 ) (25,290 ) Loans, net $ 1,827,892 $ 1,792,280 Acquired loans (b): Commercial real estate: Owner occupied $ 84,113 32.4 % $ 92,490 32.5 % Non-owner occupied 94,863 36.4 % 98,034 34.4 % Total commercial real estate loans 178,976 68.8 % 190,524 66.9 % Construction 3,447 1.3 % 10,384 3.6 % Residential real estate 49,400 19.0 % 54,468 19.1 % Commercial and industrial 27,187 10.4 % 28,286 9.9 % Consumer 1,272 0.5 % 1,416 0.5 % Total loans $ 260,282 100.0 % $ 285,078 100.0 % Total loans: Commercial real estate: Owner occupied $ 381,218 18.0 % $ 391,211 18.6 % Non-owner occupied 623,888 29.5 % 612,397 29.1 % Total commercial real estate loans 1,005,106 47.5 % 1,003,608 47.7 % Construction 216,259 10.2 % 211,038 10.0 % Residential real estate 436,907 20.7 % 431,842 20.5 % Commercial and industrial 414,735 19.6 % 414,436 19.7 % Consumer 42,565 2.0 % 43,488 2.1 % Total loans 2,115,572 100.0 % 2,104,412 100.0 % Less: Deferred loan fees (2,041 ) (1,764 ) Reserve for loan losses (25,357 ) (25,290 ) Loans, net $ 2,088,174 $ 2,077,358 (a) Loans organically made through the Company’s normal and customary origination process, including adjustable rate mortgage (“ARM”) purchases. (b) Loans acquired in the acquisition of Home and PPFS. 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 76.9% of the Bank’s originated loan portfolio at March 31, 2017 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, 2017 , approximately 78.4% 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. The Company originates commercial and industrial (“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 shared national credits (“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 participate portions of loans to third parties in order to extend the Bank’s lending capability or to mitigate risk. At March 31, 2017 and December 31, 2016 , the portion of loans participated to third parties (which are not included in the accompanying condensed consolidated financial statements) totaled $125.5 million and $128.8 million , respectively. Acquired loans PPFS Acquired loans include those loans purchased by the Company in its acquisition of PPFS, which was completed on August 1, 2016 . 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 March 31, 2017 , the remaining net fair value adjustment to the PPFS acquired loans was $1.6 million . Home Acquired loans also include those loans purchased by the Company in its acquisition (the “Home merger”) of Home Federal Bancorp, Inc. (“Home”), which was completed on May 16, 2014 (the “Home Acquisition Date”). 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 Home 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, 2017 , the remaining net fair value adjustment was $1.5 million . Of the PPFS and Home loans acquired on the PPFS Acquisition Date and Home Acquisition Date, as applicable, and still held at March 31, 2017 , $8.7 million , or 3.3% , 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, 2017 , $18.2 million , or 7.0% of the $ 260.3 million , in acquired loans were covered under loss sharing agreements with the FDIC (“covered loans”) that 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. Nearly all of the assets remaining in the covered loans portfolio 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. 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. 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 Home Acquisition Date that 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, 2017 were as follows (dollars in thousands) : Three months ended March 31, 2017 Balance at beginning of period $ 76 Paid to FDIC (76 ) FDIC reimbursement 31 Balance at end of period $ 31 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. 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, 2016 to March 31, 2017 was related to a decrease in net recoveries and loan portfolio growth during the period. Management believes the amount of allowance for loan losses (“ALLL”) is appropriate as of March 31, 2017 . The unallocated reserve for loan losses at March 31, 2017 has decreased $ 0.5 million from the balance at December 31, 2016 . 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 acquisition 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, 2017 , the remaining net fair value adjustment was $1.5 million and $1.6 million for Home and PPFS, respectively, and no additional reserve for acquired loans was required. Transactions and allocations in the reserve for loan losses and unfunded loan commitments, by portfolio segment, for the three months ended March 31, 2017 and 2016 were as follows (dollars in thousands): Commercial Construction Residential Commercial Consumer Unallocated Total For the three months ended March 31, 2017 Reserve for loan losses Balance at December 31, 2016 $ 6,321 $ 2,196 $ 3,325 $ 10,657 $ 1,203 $ 1,588 $ 25,290 Loan loss provision (credit) 104 132 82 47 178 (543 ) — Recoveries 2 5 51 401 152 — 611 Loans charged off (30 ) — (49 ) (126 ) (339 ) — (544 ) Balance at end of period $ 6,397 $ 2,333 $ 3,409 $ 10,979 $ 1,194 $ 1,045 $ 25,357 Reserve for unfunded lending commitments Balance at December 31, 2016 $ 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 $ 6,397 $ 2,333 $ 3,409 $ 10,979 $ 1,194 $ 1,045 $ 25,357 Reserve for unfunded lending commitments 48 268 25 75 24 — 440 Total reserve for credit losses $ 6,445 $ 2,601 $ 3,434 $ 11,054 $ 1,218 $ 1,045 $ 25,797 Commercial Construction Residential Commercial Consumer Unallocated Total For the three months ended March 31, 2016 Reserve 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 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, 2017 and December 31, 2016 (dollars in thousands): Reserve for loan losses Recorded investment in loans Individually Collectively Total Individually Collectively Total March 31, 2017 Commercial real estate $ — $ 6,397 $ 6,397 $ 490 $ 1,004,616 $ 1,005,106 Construction — 2,333 2,333 — 216,259 216,259 Residential real estate — 3,409 3,409 — 436,907 436,907 Commercial and industrial 2,000 8,979 10,979 6,902 407,833 414,735 Consumer — 1,194 1,194 — 42,565 42,565 $ 2,000 $ 22,312 24,312 $ 7,392 $ 2,108,180 $ 2,115,572 Unallocated 1,045 $ 25,357 December 31, 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 The above reserve for loan losses includes an unallocated allowance of $ 1.0 million at March 31, 2017 and $ 1.6 million at December 31, 2016 . The change in the unallocated allowance is due to the increase in qualitative factors impacting the reserve, partially offset by net recoveries. 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, 2017 , the Bank saw relatively steady credit quality metrics. An improvement in Special Mention loans was offset by an increase in the Substandard portfolio. Increases in the Substandard loan balances were largely due to certain energy/mining sector SNCs 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, 2017 and December 31, 2016 (dollars in thousands): Loan grades Acceptable Pass-Watch Special Mention Substandard Total March 31, 2017 Originated loans (a): Commercial real estate: Owner occupied $ 283,767 $ 6,560 $ 4,046 $ 2,732 $ 297,105 Non-owner occupied 520,588 3,307 4,137 993 529,025 Total commercial real estate loans 804,355 9,867 8,183 3,725 826,130 Construction 212,436 — — 376 212,812 Residential real estate 386,808 — — 699 387,507 Commercial and industrial 347,597 15,595 3,249 21,107 387,548 Consumer 41,264 — — 29 41,293 $ 1,792,460 $ 25,462 $ 11,432 $ 25,936 $ 1,855,290 Acquired loans (b): Commercial real estate: Owner occupied $ 77,254 $ 3,222 $ 1,641 $ 1,996 $ 84,113 Non-owner occupied 78,459 4,327 6,712 5,365 94,863 Total commercial real estate loans 155,713 7,549 8,353 7,361 178,976 Construction 3,414 — — 33 3,447 Residential real estate 47,909 814 — 677 49,400 Commercial and industrial 26,546 56 — 585 27,187 Consumer 1,272 — — — 1,272 $ 234,854 $ 8,419 $ 8,353 $ 8,656 $ 260,282 Total loans: Commercial real estate: Owner occupied $ 361,021 $ 9,782 $ 5,687 $ 4,728 $ 381,218 Non-owner occupied 599,047 7,634 10,849 6,358 623,888 Total commercial real estate loans 960,068 17,416 16,536 11,086 1,005,106 Construction 215,850 — — 409 216,259 Residential real estate 434,717 814 — 1,376 436,907 Commercial and industrial 374,143 15,651 3,249 21,692 414,735 Consumer 42,536 — — 29 42,565 $ 2,027,314 $ 33,881 $ 19,785 $ 34,592 $ 2,115,572 (a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Loans acquired in the acquisition of Home and PPFS. Loan grades Acceptable Pass-Watch Special Substandard Total December 31, 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 (a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Loans acquired in the acquisition of Home and PPFS. The following table presents, by portfolio class, an age analysis of past due loans, including loans placed on non-accrual at March 31, 2017 and December 31, 2016 (dollars in thousands): 30-89 days past due 90 days or more past due Total past due Current Total loans March 31, 2017 Originated loans (a): Commercial real estate: Owner occupied $ 244 $ 490 $ 734 $ 296,371 $ 297,105 Non-owner occupied — — — 529,025 529,025 Total commercial real estate loans 244 490 734 825,396 826,130 Construction 41 376 417 212,395 212,812 Residential real estate 351 140 491 387,016 387,507 Commercial and industrial 740 342 1,082 386,466 387,548 Consumer 198 29 227 41,066 41,293 $ 1,574 $ 1,377 $ 2,951 $ 1,852,339 $ 1,855,290 Acquired loans (b): Commercial real estate: Owner occupied $ — $ 600 $ 600 $ 83,513 $ 84,113 Non-owner occupied 786 — 786 94,077 94,863 Total commercial real estate loans 786 600 1,386 177,590 178,976 Construction — — — 3,447 3,447 Residential real estate 1,763 820 2,583 46,817 49,400 Commercial and industrial 511 579 1,090 26,097 27,187 Consumer 5 — 5 1,267 1,272 $ 3,065 $ 1,999 $ 5,064 $ 255,218 $ 260,282 Total loans: Commercial real estate: Owner occupied $ 244 $ 1,090 $ 1,334 $ 379,884 $ 381,218 Non-owner occupied 786 — 786 623,102 623,888 Total commercial real estate loans 1,030 1,090 2,120 1,002,986 1,005,106 Construction 41 376 417 215,842 216,259 Residential real estate 2,114 960 3,074 433,833 436,907 Commercial and industrial 1,251 921 2,172 412,563 414,735 Consumer 203 29 232 42,333 42,565 $ 4,639 $ 3,376 $ 8,015 $ 2,107,557 $ 2,115,572 December 31, 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 (a) Loans organically made through the Company’s normal and customary origination process, including ARM purchases. (b) Loans acquired in the acquisition of Home and PPFS. Loans contractually past due 90 days or more on which the Company continued to accrue interest were $0.62 million and $0.02 million at March 31, 2017 and December 31, 2016 , respectively. The following table presents information related to impaired loans, by portfolio class, at March 31, 2017 and December 31, 2016 (dollars in thousands): Impaired loans With a related allowance Without a related allowance Total recorded balance Unpaid principal balance Related allowance March 31, 2017 Commercial real estate: Owner occupied $ — $ 490 $ 490 $ 490 $ — Non-owner occupied — — — — — Total commercial real estate loans — 490 490 490 — Construction — — — — — Residential real estate — — — — — Commercial and industrial 6,565 337 6,902 10,425 2,000 Consumer — — — — — $ 6,565 $ 827 $ 7,392 $ 10,915 $ 2,000 December 31, 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 At March 31, 2017 and December 31, 2016 , the total recorded balance of impaired loans in the above table included no troubled debt restructuring (“TDR”) loans. The following table presents, by portfolio class, the average recorded investment in impaired loans for the three months ended March 31, 2017 and 2016 (dollars in thousands): Three Months Ended March 31, 2017 2016 Commercial real estate: Owner occupied $ 565 $ 2,876 Non-owner occupied — 1,607 Total commercial real estate loans 565 4,483 Construction — 183 Residential real estate — 9 Commercial and industrial 6,968 5,201 Consumer — — $ 7,533 $ 9,876 Interest income recognized for cash payments received on impaired loans for the three months ended March 31, 2017 and 2016 was $0.2 million and $0.1 million , respectively. Information with respect to the Company’s non-performing loans, by portfolio class, at March 31, 2017 and December 31, 2016 is as follows (dollars in thousands): March 31, 2017 December 31, 2016 Commercial real estate: Owner occupied $ 2,337 $ 1,739 Non-owner occupied 278 2,659 Total commercial real estate loans 2,615 4,398 Construction 409 429 Residential real estate 1,411 1,598 Commercial and industrial 7,706 7,270 Consumer — — Total non-accrual loans $ 12,141 $ 13,695 Accruing loans which are contractually past due 90 days or more: Residential real estate 583 — Commercial and industrial 12 5 Consumer 29 12 Total accruing loans which are contractually past due 90 days or more $ 624 $ 17 TDRs The Company allocated no specific reserves to customers whose loan terms had been modified in TDRs as of March 31, 2017 and December 31, 2016 . TDRs involve the restructuring of loan 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 prospects 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 designatio |
