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Allowance for Loan Losses
 9 Months Ended
Sep. 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 September 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

$12,443


$6,642


$19,085


$5,314


$1,375


$400


$1,775


$26,174

Charge-offs
—

(1
)
(1
)
(68
)
—

(27
)
(27
)
(96
)
Recoveries
—

71

71

—

2

8

10

81

Provision
1,052

535

1,587

(1,131
)
12

(118
)
(106
)
350

Ending Balance

$13,495


$7,247


$20,742


$4,115


$1,389


$263


$1,652


$26,509


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

The following table presents the activity in the allowance for loan losses for the nine months ended September 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
)
(8
)
(635
)
(73
)
(111
)
(70
)
(181
)
(889
)
Recoveries
25

104

129

—

12

19

31

160

Provision
1,368

1,571

2,939

(1,239
)
(924
)
(26
)
(950
)
750

Ending Balance

$13,495


$7,247


$20,742


$4,115


$1,389


$263


$1,652


$26,509

(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 September 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

$11,935


$7,067


$19,002


$5,369


$1,927


$364


$2,291


$26,662

Charge-offs
(535
)
(122
)
(657
)
—

(18
)
(19
)
(37
)
(694
)
Recoveries
—

8

8

1

25

6

31

40

Provision
1,387

(301
)
1,086

70

(27
)
171

144

1,300

Ending Balance

$12,787


$6,652


$19,439


$5,440


$1,907


$522


$2,429


$27,308

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

The following table presents the activity in the allowance for loan losses for the nine months ended September 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
(935
)
(286
)
(1,221
)
(32
)
(79
)
(83
)
(162
)
(1,415
)
Recoveries
82

162

244

29

31

15

46

319

Provision
2,474

(216
)
2,258

191

66

(115
)
(49
)
2,400

Ending Balance

$12,787


$6,652


$19,439


$5,440


$1,907


$522


$2,429


$27,308


(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)
September 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
4,860

 
—

 
5,157

 
1

Total commercial
4,860

 
—

 
10,111

 
1,019

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
9,428

 
101

 
9,783

 
104

Consumer:
 
 
 
 
 
 
 
Home equity
1,635

 
9

 
557

 
—

Other
22

 
2

 
147

 
6

Total consumer
1,657

 
11

 
704

 
6

Subtotal
15,945

 
112

 
20,598

 
1,129

Loans Collectively Evaluated for Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate
1,240,350

 
13,495

 
1,205,541

 
11,711

Commercial & industrial
652,022

 
7,247

 
607,177

 
5,579

Total commercial
1,892,372

 
20,742

 
1,812,718

 
17,290

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
1,339,912

 
4,014

 
1,217,465

 
5,323

Consumer:
 
 
 
 
 
 
 
Home equity
280,696

 
1,380

 
291,910

 
2,412

Other
27,278

 
261

 
31,380

 
334

Total consumer
307,974

 
1,641

 
323,290

 
2,746

Subtotal
3,540,258

 
26,397

 
3,353,473

 
25,359

Total

$3,556,203

 

$26,509

 

$3,374,071

 

$26,488