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Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Allowance for Loan Losses
Allowance for Loan Losses
The allowance for loan losses is management’s best estimate of incurred losses inherent 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 March 31, 2018:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE (1)
C&I (2)
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$12,729


$5,580


$18,309


$5,427


$2,412


$340


$2,752


$26,488

Charge-offs
(627
)
(6
)
(633
)
—

(35
)
(22
)
(57
)
(690
)
Recoveries
25

29

54

—

7

5

12

66

Provision
(308
)
268

(40
)
67

(192
)
165

(27
)
—

Ending Balance

$11,819


$5,871


$17,690


$5,494


$2,192


$488


$2,680


$25,864


(1) Commercial real estate loans.
(2) Commercial & industrial loans.
 
 
 
 
 
 
 
 
 
The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2017:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE (1)
C&I (2)
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$11,166


$6,992


$18,158


$5,252


$1,889


$705


$2,594


$26,004

Charge-offs
—

(2
)
(2
)
—

(45
)
(32
)
(77
)
(79
)
Recoveries
—

107

107

4

2

8

10

121

Provision
1,200

(800
)
400

103

(106
)
3

(103
)
400

Ending Balance

$12,366


$6,297


$18,663


$5,359


$1,740


$684


$2,424


$26,446

(1) Commercial real estate loans.
(2) 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)
March 31, 2018
 
December 31, 2017
 
Loans
 
Related Allowance
 
Loans
 
Related Allowance
Loans Individually Evaluated for Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate

$—

 

$—

 

$4,954

 

$1,018

Commercial & industrial
5,861

 
53

 
5,157

 
1

Total commercial
5,861

 
53

 
10,111

 
1,019

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
9,708

 
112

 
9,783

 
104

Consumer:
 
 
 
 
 
 
 
Home equity
783

 
108

 
557

 
—

Other
141

 
5

 
147

 
6

Total consumer
924

 
113

 
704

 
6

Subtotal
16,493

 
278

 
20,598

 
1,129

Loans Collectively Evaluated for Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate
1,217,278

 
11,819

 
1,205,541

 
11,711

Commercial & industrial
597,969

 
5,818

 
607,177

 
5,579

Total commercial
1,815,247

 
17,637

 
1,812,718

 
17,290

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
1,240,182

 
5,382

 
1,217,465

 
5,323

Consumer:
 
 
 
 
 
 
 
Home equity
284,940

 
2,084

 
291,910

 
2,412

Other
30,544

 
483

 
31,380

 
334

Total consumer
315,484

 
2,567

 
323,290

 
2,746

Subtotal
3,370,913

 
25,586

 
3,353,473

 
25,359

Total

$3,387,406

 

$25,864

 

$3,374,071

 

$26,488