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Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Allowance for Loan Losses
Allowance for Loan Losses
The allowance for loan losses is management’s best estimate of inherent risk of loss in the loan portfolio as of the balance sheet date. The Corporation uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology includes: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience.

Prior to December 31, 2015, an unallocated allowance was maintained for measurement imprecision associated with impaired and nonaccrual loans. As a result of further enhancement and refinement of the allowance methodology to provide a more precise quantification of probable losses in the loan portfolio, management concluded that the potential risks anticipated by the unallocated allowance had been incorporated into the allocated component of the methodology, eliminating the need for the unallocated allowance in the fourth quarter of 2015.

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2016:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
Construction
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$9,140


$1,758


$8,202

 

$19,100

 

$5,460

 

$2,509

 

$27,069

Charge-offs
(5,816
)
—

(759
)
 
(6,575
)
 
(200
)
 
(237
)
 
(7,012
)
Recoveries
56

—

156

 
212

 
11

 
74

 
297

Provision
6,591

(563
)
(607
)
 
5,421

 
(19
)
 
248

 
5,650

Ending Balance

$9,971


$1,195


$6,992

 

$18,158

 

$5,252

 

$2,594

 

$26,004

(1)
Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2015:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
Mortgages
Construction
C&I (1)
Total Commercial
Residential
Consumer
Unallocated
Total
Beginning Balance

$8,202


$1,300


$7,987


$17,489


$5,430


$2,713


$2,391


$28,023

Charge-offs
(809
)
—

(671
)
(1,480
)
(207
)
(618
)
—

(2,305
)
Recoveries
92

—

87

179

28

94

—

301

Provision
1,655

458

799

2,912

209

320

(2,391
)
1,050

Ending Balance

$9,140


$1,758


$8,202


$19,100


$5,460


$2,509


$—


$27,069

(1)
Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2014:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
Mortgages
Construction
C&I (1)
Total Commercial
Residential
Consumer
Unallocated
Total
Beginning Balance

$8,022


$383


$7,835


$16,240


$6,450


$2,511


$2,685


$27,886

Charge-offs
(977
)
—

(558
)
(1,535
)
(132
)
(282
)
—

(1,949
)
Recoveries
24

—

86

110

51

75

—

236

Provision
1,133

917

624

2,674

(939
)
409

(294
)
1,850

Ending Balance

$8,202


$1,300


$7,987


$17,489


$5,430


$2,713


$2,391


$28,023

(1)
Commercial & industrial loans.

The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology.
(Dollars in thousands)
December 31, 2016
 
December 31, 2015
 
 
 
Related
Allowance
 
 
 
Related
Allowance
 
Loans
 
 
Loans
 
Loans Individually Evaluated For Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$9,776

 

$448

 

$15,141

 

$1,633

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
7,098

 
3

 
3,871

 
771

Residential Real Estate
15,661

 
151

 
11,333

 
156

Consumer
1,280

 
4

 
1,881

 
23

Subtotal
33,815

 
606

 
32,226

 
2,583

Loans Collectively Evaluated For Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages
1,064,410

 
9,523

 
916,812

 
7,507

Construction & development
121,371

 
1,195

 
122,297

 
1,758

Commercial & industrial
569,011

 
6,989

 
596,426

 
7,431

Residential Real Estate
1,107,087

 
5,101

 
1,002,222

 
5,304

Consumer
338,677

 
2,590

 
343,144

 
2,486

Subtotal
3,200,556

 
25,398

 
2,980,901

 
24,486

Total

$3,234,371

 

$26,004

 

$3,013,127

 

$27,069