| Allowance for Credit Losses |
Allowance for Credit Losses
The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for loan losses is based on ongoing evaluations of the probable estimated losses inherent in the loan portfolio, including unexpected additional credit impairment of PCI loan pools subsequent to acquisition. There was no allowance allocation for PCI loan losses at March 31, 2017 and December 31, 2016.
The following table summarizes the allowance for credit losses at March 31, 2017 and December 31, 2016: | | | | | | | | | | March 31,
2017 | | December 31,
2016 | | (in thousands) | Components of allowance for credit losses: | | | | Allowance for loan losses | $ | 115,443 |
| | $ | 114,419 |
| Allowance for unfunded letters of credit | 2,253 |
| | 2,185 |
| Total allowance for credit losses | $ | 117,696 |
| | $ | 116,604 |
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The following table summarizes the provision for credit losses for the periods indicated: | | | | | | | | | | Three Months Ended
March 31, | | 2017 | | 2016 | | (in thousands) | Components of provision for credit losses: | | | | Provision for loan losses | $ | 2,402 |
| | $ | 729 |
| Provision for unfunded letters of credit | 68 |
| | 71 |
| Total provision for credit losses | $ | 2,470 |
| | $ | 800 |
|
The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2017 and 2016: | | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and Industrial | | Commercial Real Estate | | Residential Mortgage | | Consumer | | Unallocated | | Total | | (in thousands) | Three Months Ended
March 31, 2017 | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | Beginning balance | $ | 50,820 |
| | $ | 55,851 |
| | $ | 3,702 |
| | $ | 4,046 |
| | $ | — |
| | $ | 114,419 |
| Loans charged-off | (1,714 | ) | | (414 | ) | | (130 | ) | | (1,121 | ) | | — |
| | (3,379 | ) | Charged-off loans recovered | 848 |
| | 142 |
| | 448 |
| | 563 |
| | — |
| | 2,001 |
| Net (charge-offs) recoveries | (866 | ) | | (272 | ) | | 318 |
| | (558 | ) | | — |
| | (1,378 | ) | Provision for loan losses | 1,334 |
| | 723 |
| | (428 | ) | | 773 |
| |
|
| | 2,402 |
| Ending balance | $ | 51,288 |
| | $ | 56,302 |
| | $ | 3,592 |
| | $ | 4,261 |
| | $ | — |
| | $ | 115,443 |
| Three Months Ended
March 31, 2016 | | | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | | | Beginning balance | $ | 48,767 |
| | $ | 48,006 |
| | $ | 4,625 |
| | $ | 4,780 |
| | $ | — |
| | $ | 106,178 |
| Loans charged-off | (1,251 | ) | | (105 | ) | | (81 | ) | | (1,074 | ) | | — |
| | (2,511 | ) | Charged-off loans recovered | 526 |
| | 89 |
| | 15 |
| | 389 |
| | — |
| | 1,019 |
| Net (charge-offs) recoveries | (725 | ) | | (16 | ) | | (66 | ) | | (685 | ) | | — |
| | (1,492 | ) | Provision for loan losses | 375 |
| | 464 |
| | (350 | ) | | 240 |
| | — |
| | 729 |
| Ending balance | $ | 48,417 |
| | $ | 48,454 |
| | $ | 4,209 |
| | $ | 4,335 |
| | $ | — |
| | $ | 105,415 |
|
The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at March 31, 2017 and December 31, 2016. | | | | | | | | | | | | | | | | | | | | | | Commercial and Industrial | | Commercial Real Estate | | Residential Mortgage | | Consumer | | Total | | (in thousands) | March 31, 2017 | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | Individually evaluated for impairment | $ | 5,688 |
| | $ | 3,376 |
| | $ | 686 |
| | $ | 93 |
| | $ | 9,843 |
| Collectively evaluated for impairment | 45,600 |
| | 52,926 |
| | 2,906 |
| | 4,168 |
| | 105,600 |
| Total | $ | 51,288 |
| | $ | 56,302 |
| | $ | 3,592 |
| | $ | 4,261 |
| | $ | 115,443 |
| Loans: | | | | | | | | | | Individually evaluated for impairment | $ | 30,061 |
| | $ | 60,083 |
| | $ | 18,557 |
| | $ | 3,784 |
| | $ | 112,485 |
| Collectively evaluated for impairment | 2,368,094 |
| | 8,649,408 |
| | 2,555,789 |
| | 2,109,021 |
| | 15,682,312 |
| Loans acquired with discounts related to credit quality | 244,165 |
| | 1,142,780 |
| | 171,101 |
| | 96,655 |
| | 1,654,701 |
| Total | $ | 2,642,320 |
| | $ | 9,852,271 |
| | $ | 2,745,447 |
| | $ | 2,209,460 |
| | $ | 17,449,498 |
| December 31, 2016 | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | Individually evaluated for impairment | $ | 5,864 |
| | $ | 3,872 |
| | $ | 725 |
| | $ | 70 |
| | $ | 10,531 |
| Collectively evaluated for impairment | 44,956 |
| | 51,979 |
| | 2,977 |
| | 3,976 |
| | 103,888 |
| Total | $ | 50,820 |
| | $ | 55,851 |
| | $ | 3,702 |
| | $ | 4,046 |
| | $ | 114,419 |
| Loans: | | | | | | | | | | Individually evaluated for impairment | $ | 30,640 |
| | $ | 62,289 |
| | $ | 18,356 |
| | $ | 3,534 |
| | $ | 114,819 |
| Collectively evaluated for impairment | 2,326,378 |
| | 8,276,305 |
| | 2,665,839 |
| | 2,081,260 |
| | 15,349,782 |
| Loans acquired with discounts related to credit quality | 281,177 |
| | 1,206,019 |
| | 183,723 |
| | 100,583 |
| | 1,771,502 |
| Total | $ | 2,638,195 |
| | $ | 9,544,613 |
| | $ | 2,867,918 |
| | $ | 2,185,377 |
| | $ | 17,236,103 |
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