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Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2018
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, 2018 and 2017.
The following table summarizes the allowance for credit losses at December 31, 2018 and 2017:
 
December 31,
 
2018
 
2017
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for loan losses
$
151,859

 
$
120,856

Allowance for unfunded letters of credit
4,436

 
3,596

Total allowance for credit losses
$
156,295

 
$
124,452


The following table summarizes the provision for credit losses for the years ended December 31, 2018, 2017 and 2016: 
 
2018
 
2017
 
2016
 
(in thousands)
Components of provision for credit losses:
 
 
 
 
 
Provision for loan losses
$
31,661

 
$
8,531

 
$
11,873

Provision for unfunded letters of credit
840

 
1,411

 
(4
)
Total provision for credit losses
$
32,501

 
$
9,942

 
$
11,869


The following table details the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2018 and 2017: 
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
December 31, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans charged-off
(2,515
)
 
(348
)
 
(223
)
 
(4,977
)
 
(8,063
)
Charged-off loans recovered
4,623

 
417

 
272

 
2,093

 
7,405

Net (charge-offs) recoveries
2,108

 
69

 
49

 
(2,884
)
 
(658
)
Provision for loan losses
31,616

 
(5,373
)
 
1,387

 
4,031

 
31,661

Ending balance
$
90,956

 
$
49,650

 
$
5,041

 
$
6,212

 
$
151,859

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



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, 2018 and 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)
 
 
 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
29,684

 
$
2,628

 
$
600

 
$
113

 
$
33,025

Collectively evaluated for impairment
61,272

 
47,022

 
4,441

 
6,099

 
118,834

Total
$
90,956

 
$
49,650

 
$
5,041

 
$
6,212

 
$
151,859

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
97,852

 
$
43,598

 
$
13,904

 
$
1,271

 
$
156,625

Collectively evaluated for impairment
3,492,523

 
10,991,059

 
3,669,080

 
2,536,096

 
20,688,758

Loans acquired with discounts related to credit quality
740,657

 
2,860,750

 
428,416

 
160,263

 
4,190,086

Total
$
4,331,032

 
$
13,895,407

 
$
4,111,400

 
$
2,697,630

 
$
25,035,469

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