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Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2019
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, 2019:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE (1)
C&I (2)
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$15,381


$5,847


$21,228


$3,987


$1,603


$254


$1,857


$27,072

Charge-offs
—

(14
)
(14
)
—

(61
)
(28
)
(89
)
(103
)
Recoveries
—

8

8

—

13

4

17

25

Provision
1,810

(1,343
)
467

22

34

127

161

650

Ending Balance

$17,191


$4,498


$21,689


$4,009


$1,589


$357


$1,946


$27,644


(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, 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 Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology:
(Dollars in thousands)
March 31, 2019
 
December 31, 2018
 
Loans
 
Related Allowance
 
Loans
 
Related Allowance
Loans Individually Evaluated for Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate

$926

 

$—

 

$925

 

$—

Commercial & industrial
4,626

 
—

 
4,714

 
—

Total commercial
5,552

 
—

 
5,639

 
—

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
10,394

 
98

 
9,710

 
100

Consumer:
 
 
 
 
 
 
 
Home equity
1,408

 
111

 
1,445

 
24

Other
20

 
1

 
22

 
3

Total consumer
1,428

 
112

 
1,467

 
27

Subtotal
17,374

 
210

 
16,816

 
127

Loans Collectively Evaluated for Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate
1,462,756

 
17,191

 
1,391,483

 
15,381

Commercial & industrial
605,982

 
4,498

 
615,990

 
5,847

Total commercial
2,068,738

 
21,689

 
2,007,473

 
21,228

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
1,348,678

 
3,911

 
1,350,677

 
3,887

Consumer:
 
 
 
 
 
 
 
Home equity
278,530

 
1,478

 
279,182

 
1,579

Other
25,149

 
356

 
26,212

 
251

Total consumer
303,679

 
1,834

 
305,394

 
1,830

Subtotal
3,721,095

 
27,434

 
3,663,544

 
26,945

Total

$3,738,469

 

$27,644

 

$3,680,360

 

$27,072