6. ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses addresses credit losses inherent in the existing loan and lease portfolio and is presented as a reserve against loans and leases on the consolidated balance sheet. Loan and lease losses are charged off against the allowance for credit losses, with recoveries of amounts previously charged off credited to the allowance for credit losses. Provisions for credit losses are charged to operations based on management’s periodic evaluation of the adequacy of the allowance for credit losses.

Following is a summary of changes in the allowance for credit losses, by loan and lease class:

(in thousands)

Balance at
Beginning of
Period

Charge-
Offs

Recoveries

Net
Charge-
Offs

Provision
for Credit
Losses

Balance at
End of
Period

Three Months Ended June 30, 2016

Commercial real estate

43,898

(666

)

1,109

443

44,428

Commercial and industrial

47,863

(5,671

)

190

(5,481

)

9,093

51,475

Commercial leases

2,818

(603

)

(571

)

800

3,047

Total commercial loans and leases

94,579

(6,940

)

1,331

(5,609

)

9,980

98,950

Direct installment

20,725

(2,421

)

454

(1,967

)

2,785

21,543

Residential mortgages

7,810

(72

)

(34

)

634

8,410

Indirect installment

9,065

(1,763

)

666

(1,097

)

1,575

9,543

Consumer lines of credit

8,967

(528

)

(479

)

661

9,149

Other

1,074

(725

)

(699

)

749

1,124

Total allowance on originated loans and leases

142,220

(12,449

)

2,564

(9,885

)

16,384

148,719

Purchased credit-impaired loans

704

(239

)

—

(239

)

167

632

Other acquired loans

4,876

(226

)

279

5,018

Total allowance on acquired loans

5,580

(465

)

279

(186

)

256

5,650

Total

147,800

(12,914

)

2,843

(10,071

)

16,640

154,369

Six Months Ended June 30, 2016

Commercial real estate

41,741

(2,035

)

1,706

(329

)

3,016

44,428

Commercial and industrial

41,023

(5,969

)

380

(5,589

)

16,041

51,475

Commercial leases

2,541

(717

)

(671

)

1,177

3,047

Total commercial loans and leases

85,305

(8,721

)

2,132

(6,589

)

20,234

98,950

Direct installment

21,587

(5,088

)

908

(4,180

)

4,136

21,543

Residential mortgages

7,909

(157

)

(100

)

601

8,410

Indirect installment

9,889

(3,705

)

928

(2,777

)

2,431

9,543

Consumer lines of credit

9,582

(1,002

)

105

(897

)

464

9,149

Other

1,013

(1,279

)

(1,247

)

1,358

1,124

Total allowance on originated loans and leases

135,285

(19,952

)

4,162

(15,790

)

29,224

148,719

Purchased credit-impaired loans

834

(399

)

—

(399

)

197

632

Other acquired loans

5,893

(447

)

585

138

(1,013

)

5,018

Total allowance on acquired loans

6,727

(846

)

585

(261

)

(816

)

5,650

Total

142,012

(20,798

)

4,747

(16,051

)

28,408

154,369


(in thousands)	Balance at Beginning of Period		Charge- Offs			Recoveries		Net Charge- Offs			Provision for Credit Losses			Balance at End of Period
Three Months Ended June 30, 2015
Commercial real estate	$	38,792	$	(977	)	$	200	$	(777	)	$	1,857		$	39,872
Commercial and industrial		32,803		(1,416	)		976		(440	)		(58	)		32,305
Commercial leases		2,576		(111	)		35		(76	)		(277	)		2,223

Total commercial loans and leases		74,171		(2,504	)		1,211		(1,293	)		1,522			74,400
Direct installment		21,204		(2,953	)		297		(2,656	)		3,731			22,279
Residential mortgages		8,471		(112	)		24		(88	)		196			8,579
Indirect installment		7,657		(1,503	)		332		(1,171	)		2,423			8,909
Consumer lines of credit		8,890		(323	)		36		(287	)		515			9,118
Other		854		(325	)		25		(300	)		357			911

Total allowance on originated loans and leases		121,247		(7,720	)		1,925		(5,795	)		8,744			124,196

Purchased credit-impaired loans		621		—			—		—			37			658
Other acquired loans		6,631		(468	)		41		(427	)		83			6,287

Total allowance on acquired loans		7,252		(468	)		41		(427	)		120			6,945

Total	$	128,499	$	(8,188	)	$	1,966	$	(6,222	)	$	8,864		$	131,141

Six Months Ended June 30, 2015
Commercial real estate	$	37,588	$	(1,978	)	$	409	$	(1,569	)	$	3,853		$	39,872
Commercial and industrial		32,645		(2,100	)		1,096		(1,004	)		664			32,305
Commercial leases		2,398		(204	)		45		(159	)		(16	)		2,223

Total commercial loans and leases		72,631		(4,282	)		1,550		(2,732	)		4,501			74,400
Direct installment		20,538		(5,386	)		566		(4,820	)		6,561			22,279
Residential mortgages		8,024		(623	)		39		(584	)		1,139			8,579
Indirect installment		7,504		(2,783	)		634		(2,149	)		3,554			8,909
Consumer lines of credit		8,496		(733	)		76		(657	)		1,279			9,118
Other		759		(660	)		36		(624	)		776			911

Total allowance on originated loans and leases		117,952		(14,467	)		2,901		(11,566	)		17,810			124,196

Purchased credit-impaired loans		660		(64	)		19		(45	)		43			658
Other acquired loans		7,314		(545	)		371		(174	)		(853	)		6,287

Total allowance on acquired loans		7,974		(609	)		390		(219	)		(810	)		6,945

Total	$	125,926	$	(15,076	)	$	3,291	$	(11,785	)	$	17,000		$	131,141

Following is a summary of the individual and collective originated allowance for credit losses and corresponding loan and lease balances by class:


	Originated Allowance				Originated Loans and Leases Outstanding
(in thousands)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Loans and Leases		Individually Evaluated for Impairment		Collectively Evaluated for Impairment
June 30, 2016
Commercial real estate	$	234	$	44,194	$	3,789,036	$	14,059	$	3,774,977
Commercial and industrial		6,616		44,859		2,643,116		23,546		2,619,570
Commercial leases		—		3,047		200,350		—		200,350

Total commercial loans and leases		6,850		92,100		6,632,502		37,605		6,594,897
Direct installment		—		21,543		1,733,606		—		1,733,606
Residential mortgages		—		8,410		1,217,574		—		1,217,574
Indirect installment		—		9,543		1,076,516		—		1,076,516
Consumer lines of credit		—		9,149		1,058,128		—		1,058,128
Other		—		1,124		51,826		—		51,826

Total	$	6,850	$	141,869	$	11,770,152	$	37,605	$	11,732,547

December 31, 2015
Commercial real estate	$	321	$	41,420	$	3,531,146	$	12,904	$	3,518,242
Commercial and industrial		2,329		38,694		2,534,351		10,802		2,523,549
Commercial leases		—		2,541		204,553		—		204,553

Total commercial loans and leases		2,650		82,655		6,270,050		23,706		6,246,344
Direct installment		—		21,587		1,660,717		—		1,660,717
Residential mortgages		—		7,909		1,044,689		—		1,044,689
Indirect installment		—		9,889		996,175		—		996,175
Consumer lines of credit		—		9,582		1,021,830		—		1,021,830
Other		—		1,013		38,518		—		38,518

Total	$	2,650	$	132,635	$	11,031,979	$	23,706	$	11,008,273