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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2017
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.

The following table presents the activity in the allowance for loan losses for the three months ended June 30, 2017:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$10,861

 

$1,505

 

$6,297

 

$18,663

 

$5,359

 

$2,424

 

$26,446

Charge-offs
(400
)
 
—

 
(162
)
 
(562
)
 
(32
)
 
(48
)
 
(642
)
Recoveries
82

 
—

 
47

 
129

 
24

 
5

 
158

Provision
192

 
(305
)
 
885

 
772

 
18

 
(90
)
 
700

Ending Balance

$10,735

 

$1,200

 

$7,067

 

$19,002

 

$5,369

 

$2,291

 

$26,662


(1) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the six months ended June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$9,971

 

$1,195

 

$6,992

 

$18,158

 

$5,252

 

$2,594

 

$26,004

Charge-offs
(400
)
 
—

 
(164
)
 
(564
)
 
(32
)
 
(125
)
 
(721
)
Recoveries
82

 
—

 
154

 
236

 
28

 
15

 
279

Provision
1,082

 
5

 
85

 
1,172

 
121

 
(193
)
 
1,100

Ending Balance

$10,735

 

$1,200

 

$7,067

 

$19,002

 

$5,369

 

$2,291

 

$26,662

(1) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the three months ended June 30, 2016:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$8,586

 

$1,643

 

$8,261

 

$18,490

 

$5,363

 

$2,284

 

$26,137

Charge-offs
(78
)
 
—

 
(746
)
 
(824
)
 
(4
)
 
(32
)
 
(860
)
Recoveries
13

 
—

 
62

 
75

 
2

 
22

 
99

Provision
1,892

 
(739
)
 
(1,057
)
 
96

 
108

 
246

 
450

Ending Balance

$10,413

 

$904

 

$6,520

 

$17,837

 

$5,469

 

$2,520

 

$25,826

(1) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the six months ended June 30, 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
(1,331
)
 
—

 
(754
)
 
(2,085
)
 
(140
)
 
(110
)
 
(2,335
)
Recoveries
17

 
—

 
88

 
105

 
4

 
33

 
142

Provision
2,587

 
(854
)
 
(1,016
)
 
717

 
145

 
88

 
950

Ending Balance

$10,413

 

$904

 

$6,520

 

$17,837

 

$5,469

 

$2,520

 

$25,826


(1) Commercial & industrial loans.

The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology:
(Dollars in thousands)
June 30, 2017
 
December 31, 2016
 
Loans
 
Related Allowance
 
Loans
 
Related Allowance
Loans Individually Evaluated for Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$8,380

 

$485

 

$9,776

 

$448

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
6,939

 
718

 
7,098

 
3

Residential real estate
15,721

 
135

 
15,661

 
151

Consumer
755

 
7

 
1,280

 
4

Subtotal
31,795

 
1,345

 
33,815

 
606

Loans Collectively Evaluated for Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$1,000,716

 

$10,250

 

$1,064,410

 

$9,523

Construction & development
112,177

 
1,200

 
121,371

 
1,195

Commercial & industrial
570,177

 
6,349

 
569,011

 
6,989

Residential real estate
1,152,384

 
5,234

 
1,107,087

 
5,101

Consumer
332,851

 
2,284

 
338,677

 
2,590

Subtotal
3,168,305

 
25,317

 
3,200,556

 
25,398

Total

$3,200,100

 

$26,662

 

$3,234,371

 

$26,004