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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Allowance for Credit Losses
Allowance for Credit Losses

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 June 30, 2018 and December 31, 2017.
The following table summarizes the allowance for credit losses at June 30, 2018 and December 31, 2017: 
 
June 30,
2018
 
December 31,
2017
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for loan losses
$
138,762

 
$
120,856

Allowance for unfunded letters of credit
4,392

 
3,596

Total allowance for credit losses
$
143,154

 
$
124,452


The following table summarizes the provision for credit losses for the periods indicated:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2018
 
2017
 
2018
 
2017
 
(in thousands)
Components of provision for credit losses:
 
 
 
 
 
 
 
Provision for loan losses
$
6,592

 
$
3,710

 
$
17,294

 
$
6,112

Provision for unfunded letters of credit
550

 
(78
)
 
796

 
(10
)
Total provision for credit losses
$
7,142

 
$
3,632

 
$
18,090

 
$
6,102


The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2018 and 2017:
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
Three Months Ended
June 30, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
66,546

 
$
56,679

 
$
4,100

 
$
5,537

 
$
132,862

Loans charged-off
(642
)
 
(38
)
 
(99
)
 
(1,422
)
 
(2,201
)
Charged-off loans recovered
819

 
15

 
180

 
495

 
1,509

Net recoveries (charge-offs)
177

 
(23
)
 
81

 
(927
)
 
(692
)
Provision for loan losses
7,534

 
(2,844
)
 
443

 
1,459

 
6,592

Ending balance
$
74,257

 
$
53,812

 
$
4,624

 
$
6,069

 
$
138,762

Three Months Ended
June 30, 2017
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
51,288

 
$
56,302

 
$
3,592

 
$
4,261

 
$
115,443

Loans charged-off
(2,910
)
 
(139
)
 
(229
)
 
(1,011
)
 
(4,289
)
Charged-off loans recovered
312

 
640

 
235

 
395

 
1,582

Net (charge-offs) recoveries
(2,598
)
 
501

 
6

 
(616
)
 
(2,707
)
Provision for loan losses
2,927

 
(1,348
)
 
588

 
1,543

 
3,710

Ending balance
$
51,617

 
$
55,455

 
$
4,186

 
$
5,188

 
$
116,446


 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
Six Months Ended
June 30, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans charged-off
(773
)
 
(348
)
 
(167
)
 
(2,633
)
 
(3,921
)
Charged-off loans recovered
2,926

 
384

 
260

 
963

 
4,533

Net recoveries (charge-offs)
2,153

 
36

 
93

 
(1,670
)
 
612

Provision for loan losses
14,872

 
(1,178
)
 
926

 
2,674

 
17,294

Ending balance
$
74,257

 
$
53,812

 
$
4,624

 
$
6,069

 
$
138,762

Six Months Ended
June 30, 2017
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
50,820

 
$
55,851

 
$
3,702

 
$
4,046

 
$
114,419

Loans charged-off
(4,624
)
 
(553
)
 
(359
)
 
(2,132
)
 
(7,668
)
Charged-off loans recovered
1,160

 
782

 
683

 
958

 
3,583

Net (charge-offs) recoveries
(3,464
)
 
229

 
324

 
(1,174
)
 
(4,085
)
Provision for loan losses
4,261

 
(625
)
 
160

 
2,316

 
6,112

Ending balance
$
51,617

 
$
55,455

 
$
4,186

 
$
5,188

 
$
116,446



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 at June 30, 2018 and December 31, 2017. 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)
June 30, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
24,817

 
$
2,987

 
$
632

 
$
72

 
$
28,508

Collectively evaluated for impairment
49,440

 
50,825

 
3,992

 
5,997

 
110,254

Total
$
74,257

 
$
53,812

 
$
4,624

 
$
6,069

 
$
138,762

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
87,170

 
$
54,719

 
$
12,849

 
$
1,453

 
$
156,191

Collectively evaluated for impairment
2,934,354

 
10,051,628

 
3,038,580

 
2,406,262

 
18,430,824

Loans acquired with discounts related to credit quality
808,001

 
3,184,215

 
477,253

 
178,232

 
4,647,701

Total
$
3,829,525

 
$
13,290,562

 
$
3,528,682

 
$
2,585,947

 
$
23,234,716

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