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Allowance for Loan Losses
 6 Months Ended
Jun. 30, 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 June 30, 2018:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE (1)
C&I (2)
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$11,819


$5,871


$17,690


$5,494


$2,192


$488


$2,680


$25,864

Charge-offs
—

(1
)
(1
)
(5
)
(76
)
(21
)
(97
)
(103
)
Recoveries
—

4

4

—

3

6

9

13

Provision
624

768

1,392

(175
)
(744
)
(73
)
(817
)
400

Ending Balance

$12,443


$6,642


$19,085


$5,314


$1,375


$400


$1,775


$26,174


(1) Commercial real estate loans.
(2) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the six months ended June 30, 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
)
(7
)
(634
)
(5
)
(111
)
(43
)
(154
)
(793
)
Recoveries
25

33

58

—

10

11

21

79

Provision
316

1,036

1,352

(108
)
(936
)
92

(844
)
400

Ending Balance

$12,443


$6,642


$19,085


$5,314


$1,375


$400


$1,775


$26,174

(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 June 30, 2017:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE (1)
C&I (2)
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$12,366


$6,297


$18,663


$5,359


$1,740


$684


$2,424


$26,446

Charge-offs
(400
)
(162
)
(562
)
(32
)
(16
)
(32
)
(48
)
(642
)
Recoveries
82

47

129

24

4

1

5

158

Provision
(113
)
885

772

18

199

(289
)
(90
)
700

Ending Balance

$11,935


$7,067


$19,002


$5,369


$1,927


$364


$2,291


$26,662

(1) Commercial real estate loans.
(2) 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
 
 
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
(400
)
(164
)
(564
)
(32
)
(61
)
(64
)
(125
)
(721
)
Recoveries
82

154

236

28

6

9

15

279

Provision
1,087

85

1,172

121

93

(286
)
(193
)
1,100

Ending Balance

$11,935


$7,067


$19,002


$5,369


$1,927


$364


$2,291


$26,662


(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)
June 30, 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
5,742

 
18

 
5,157

 
1

Total commercial
5,742

 
18

 
10,111

 
1,019

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
10,572

 
168

 
9,783

 
104

Consumer:
 
 
 
 
 
 
 
Home equity
1,144

 
8

 
557

 
—

Other
33

 
4

 
147

 
6

Total consumer
1,177

 
12

 
704

 
6

Subtotal
17,491

 
198

 
20,598

 
1,129

Loans Collectively Evaluated for Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate
1,218,643

 
12,443

 
1,205,541

 
11,711

Commercial & industrial
626,287

 
6,624

 
607,177

 
5,579

Total commercial
1,844,930

 
19,067

 
1,812,718

 
17,290

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
1,316,846

 
5,146

 
1,217,465

 
5,323

Consumer:
 
 
 
 
 
 
 
Home equity
282,600

 
1,367

 
291,910

 
2,412

Other
28,363

 
396

 
31,380

 
334

Total consumer
310,963

 
1,763

 
323,290

 
2,746

Subtotal
3,472,739

 
25,976

 
3,353,473

 
25,359

Total

$3,490,230

 

$26,174

 

$3,374,071

 

$26,488