Allowance for Loan Losses and Reserve for Unfunded Lending Commitments

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



	Nine Months Ended September 30, 2019			Year Ended December 31, 2018			Nine Months Ended September 30, 2018
Allowance for Loan Losses
Balance, beginning of period	$	12,805		$	13,603		$	13,603
Recovery of loan losses	(6		)	(103		)	(97		)
Charge-offs	(189		)	(1,020		)	(202		)
Recoveries	148			325			284
Balance, end of period	$	12,758		$	12,805		$	13,588

Reserve for Unfunded Lending Commitments
Balance, beginning of period	$	217		$	206		$	206
Provision for unfunded commitments	90			11			12
Balance, end of period	$	307		$	217		$	218

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, 2019 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2018:	$	2,537		$	7,246		$	2,977		$	45		$	12,805
Provision for (recovery of) loan losses	31			(4		)	(99		)	66			(6		)
Charge-offs	(11		)	(6		)	(20		)	(152		)	(189		)
Recoveries	12			8			34			94			148
Balance at September 30, 2019:	$	2,569		$	7,244		$	2,892		$	53		$	12,758

Balance at September 30, 2019:

Allowance for Loan Losses
Individually evaluated for impairment	$	47		$	—		$	27		$	—		$	74
Collectively evaluated for impairment	2,522			7,213			2,720			53			12,508
Acquired impaired loans	—			31			145			—			176
Total	$	2,569		$	7,244		$	2,892		$	53		$	12,758

Loans
Individually evaluated for impairment	$	52		$	530		$	1,033		$	—		$	1,615
Collectively evaluated for impairment	323,128			994,224			424,737			12,010			1,754,099
Acquired impaired loans	1,328			32,253			15,137			15			48,733
Total	$	324,508		$	1,027,007		$	440,907		$	12,025		$	1,804,447

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, 2018 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2017:	$	2,413		$	8,321		$	2,825		$	44		$	13,603
Provision for (recovery of) loan losses	842			(1,074		)	89			40			(103		)
Charge-offs	(787		)	(11		)	(86		)	(136		)	(1,020		)
Recoveries	69			10			149			97			325
Balance at December 31, 2018:	$	2,537		$	7,246		$	2,977		$	45		$	12,805

Balance at December 31, 2018:

Allowance for Loan Losses
Individually evaluated for impairment	$	55		$	—		$	9		$	—		$	64
Collectively evaluated for impairment	2,482			7,211			2,822			45			12,560
Acquired impaired loans	—			35			146			—			181
Total	$	2,537		$	7,246		$	2,977		$	45		$	12,805

Loans
Individually evaluated for impairment	$	90		$	376		$	868		$	—		$	1,334
Collectively evaluated for impairment	285,431			742,365			302,657			5,078			1,335,531
Acquired impaired loans	451			10,299			9,846			15			20,611
Total	$	285,972		$	753,040		$	313,371		$	5,093		$	1,357,476

The allowance for loan losses is allocated to loan segments based upon historical loss factors, risk grades on individual 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.