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

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