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Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Allowance for Credit Losses
ALLOWANCE FOR CREDIT LOSSES (Note 6)
The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for loan losses is based on ongoing evaluations of the probable estimated losses inherent in the loan portfolio, including unexpected additional credit impairment of PCI loan pools subsequent to acquisition. There was no allowance allocation for PCI loan losses at December 31, 2017 and 2016.
The following table summarizes the allowance for credit losses at December 31, 2017 and 2016:
 
December 31,
 
2017
 
2016
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for loan losses
$
120,856

 
$
114,419

Allowance for unfunded letters of credit
3,596

 
2,185

Total allowance for credit losses
$
124,452

 
$
116,604


The following table summarizes the provision for credit losses for the years ended December 31, 2017, 2016 and 2015: 
 
2017
 
2016
 
2015
 
(in thousands)
Components of provision for credit losses:
 
 
 
 
 
Provision for loan losses
$
8,531

 
$
11,873

 
$
7,846

Provision for unfunded letters of credit
1,411

 
(4
)
 
255

Total provision for credit losses
$
9,942

 
$
11,869

 
$
8,101


The following table details the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2017 and 2016: 
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
December 31, 2017
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
50,820

 
$
55,851

 
$
3,702

 
$
4,046

 
$
114,419

Loans charged-off
(5,421
)
 
(559
)
 
(530
)
 
(4,564
)
 
(11,074
)
Charged-off loans recovered
4,736

 
1,425

 
1,016

 
1,803

 
8,980

Net (charge-offs) recoveries
(685
)
 
866

 
486

 
(2,761
)
 
(2,094
)
Provision for loan losses
7,097

 
(1,763
)
 
(583
)
 
3,780

 
8,531

Ending balance
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

December 31, 2016
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
48,767

 
$
48,006

 
$
4,625

 
$
4,780

 
$
106,178

Loans charged-off
(5,990
)
 
(650
)
 
(866
)
 
(3,463
)
 
(10,969
)
Charged-off loans recovered
2,852

 
2,057

 
774

 
1,654

 
7,337

Net (charge-offs) recoveries
(3,138
)
 
1,407

 
(92
)
 
(1,809
)
 
(3,632
)
Provision for loan losses
5,191

 
6,438

 
(831
)
 
1,075

 
11,873

Ending balance
$
50,820

 
$
55,851

 
$
3,702

 
$
4,046

 
$
114,419



The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology for the years ended December 31, 2017 and 2016. Loans individually evaluated for impairment represent Valley’s impaired loans. Loans acquired with discounts related to credit quality represent Valley’s PCI loans. 
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
11,044

 
$
2,735

 
$
718

 
$
64

 
$
14,561

Collectively evaluated for impairment
46,188

 
52,219

 
2,887

 
5,001

 
106,295

Total
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
85,499

 
$
60,851

 
$
14,056

 
$
3,760

 
$
164,166

Collectively evaluated for impairment
2,463,566

 
9,310,964

 
2,703,688

 
2,301,981

 
16,780,199

Loans acquired with discounts related to credit quality
192,360

 
976,067

 
141,291

 
77,497

 
1,387,215

Total
$
2,741,425

 
$
10,347,882

 
$
2,859,035

 
$
2,383,238

 
$
18,331,580

December 31, 2016
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
5,864

 
$
3,872

 
$
725

 
$
70

 
$
10,531

Collectively evaluated for impairment
44,956

 
51,979

 
2,977

 
3,976

 
103,888

Total
$
50,820

 
$
55,851

 
$
3,702

 
$
4,046

 
$
114,419

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
30,640

 
$
62,289

 
$
18,356

 
$
3,534

 
$
114,819

Collectively evaluated for impairment
2,326,378

 
8,276,305

 
2,665,839

 
2,081,260

 
15,349,782

Loans acquired with discounts related to credit quality
281,177

 
1,206,019

 
183,723

 
100,583

 
1,771,502

Total
$
2,638,195

 
$
9,544,613

 
$
2,867,918

 
$
2,185,377

 
$
17,236,103