Allowance for Loan Losses and Reserve for Unfunded Lending Commitments

Changes in the allowance for loan losses and the reserve for unfunded lending commitments as of the indicated dates and periods are presented below (dollars in thousands):



	Nine Months Ended September 30, 2017			Year Ended December 31, 2016			Nine Months Ended September 30, 2016
Allowance for Loan Losses
Balance, beginning of period	$	12,801		$	12,601		$	12,601
Provision for loan losses	1,090			250			200
Charge-offs	(411		)	(326		)	(245		)
Recoveries	378			276			201
Balance, end of period	$	13,858		$	12,801		$	12,757

Reserve for Unfunded Lending Commitments
Balance, beginning of period	$	203		$	184		$	184
Provision for unfunded commitments	11			19			11
Charge-offs	—			—			—
Balance, end of period	$	214		$	203		$	195

The reserve for unfunded loan commitments is included in other liabilities.

The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the nine months ended September 30, 2017 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2016:	$	2,095		$	7,355		$	3,303		$	48		$	12,801
Provision for loan losses	249			1,061			(247		)	27			1,090
Charge-offs	(166		)	(35		)	(93		)	(117		)	(411		)
Recoveries	219			24			49			86			378
Balance at September 30, 2017:	$	2,397		$	8,405		$	3,012		$	44		$	13,858

Balance at September 30, 2017:

Allowance for Loan Losses
Individually evaluated for impairment	$	155		$	—		$	10		$	—		$	165
Collectively evaluated for impairment	2,224			8,274			2,777			44			13,319
Acquired impaired loans	18			131			225			—			374
Total	$	2,397		$	8,405		$	3,012		$	44		$	13,858

Loans
Individually evaluated for impairment	$	257		$	1,207		$	2,170		$	7		$	3,641
Collectively evaluated for impairment	230,022			726,347			306,066			4,218			1,266,653
Acquired impaired loans	205			12,749			11,891			15			24,860
Total	$	230,484		$	740,303		$	320,127		$	4,240		$	1,295,154

The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the year ended December 31, 2016 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2015:	$	2,065		$	6,930		$	3,546		$	60		$	12,601
Provision for loan losses	30			403			(224		)	41			250
Charge-offs	(40		)	(10		)	(87		)	(189		)	(326		)
Recoveries	40			32			68			136			276
Balance at December 31, 2016:	$	2,095		$	7,355		$	3,303		$	48		$	12,801

Balance at December 31, 2016:

Allowance for Loan Losses
Individually evaluated for impairment	$	—		$	—		$	23		$	—		$	23
Collectively evaluated for impairment	2,087			7,248			3,046			48			12,429
Acquired impaired loans	8			107			234			—			349
Total	$	2,095		$	7,355		$	3,303		$	48		$	12,801

Loans
Individually evaluated for impairment	$	43		$	2,186		$	2,588		$	27		$	4,844
Collectively evaluated for impairment	208,258			610,462			307,600			4,988			1,131,308
Acquired impaired loans	416			12,570			15,667			16			28,669
Total	$	208,717		$	625,218		$	325,855		$	5,031		$	1,164,821

The allowance for loan losses is allocated to loan segments based upon historical loss factors, risk grades on individual loans, portfolio analysis of smaller balance homogenous loans, and qualitative factors. Qualitative factors include trends in delinquencies, nonaccrual loans, and loss rates; trends in volume and terms of loans, effects of changes in risk selection, underwriting standards, and lending policies; experience of lending officers, other lending staff and loan review; national, regional, and local economic trends and conditions; legal, regulatory and collateral factors; and concentrations of credit.