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Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2019
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 March 31, 2019 and December 31, 2018.
The following table summarizes the allowance for credit losses at March 31, 2019 and December 31, 2018: 
 
March 31,
2019
 
December 31,
2018
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for loan losses
$
154,381

 
$
151,859

Allowance for unfunded letters of credit
4,580

 
4,436

Total allowance for credit losses
$
158,961

 
$
156,295


The following table summarizes the provision for credit losses for the periods indicated:
 
Three Months Ended
March 31,
 
2019
 
2018
 
(in thousands)
Components of provision for credit losses:
 
 
 
Provision for loan losses
$
7,856

 
$
10,702

Provision for unfunded letters of credit
144

 
246

Total provision for credit losses
$
8,000

 
$
10,948


The following tables detail activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2019 and 2018:
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
Three Months Ended
March 31, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
90,956

 
$
49,650

 
$
5,041

 
$
6,212

 
$
151,859

Loans charged-off
(4,282
)
 
—

 
(2,028
)
 
(15
)
 
(6,325
)
Charged-off loans recovered
483

 
21

 
1

 
486

 
991

Net (charge-offs) recoveries
(3,799
)
 
21

 
(2,027
)
 
471

 
(5,334
)
Provision for loan losses
7,473

 
(1,909
)
 
2,125

 
167

 
7,856

Ending balance
$
94,630

 
$
47,762

 
$
5,139

 
$
6,850

 
$
154,381

Three Months Ended
March 31, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans charged-off
(131
)
 
(310
)
 
(68
)
 
(1,211
)
 
(1,720
)
Charged-off loans recovered
2,107

 
369

 
80

 
468

 
3,024

Net recoveries (charge-offs)
1,976

 
59

 
12

 
(743
)
 
1,304

Provision for loan losses
7,338

 
1,666

 
483

 
1,215

 
10,702

Ending balance
$
66,546

 
$
56,679

 
$
4,100

 
$
5,537

 
$
132,862



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 March 31, 2019 and December 31, 2018. 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)
March 31, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
31,508

 
$
2,615

 
$
676

 
$
51

 
$
34,850

Collectively evaluated for impairment
63,122

 
45,147

 
4,463

 
6,799

 
119,531

Total
$
94,630

 
$
47,762

 
$
5,139

 
$
6,850

 
$
154,381

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
106,070

 
$
43,855

 
$
12,693

 
$
898

 
$
163,516

Collectively evaluated for impairment
3,680,672

 
11,345,274

 
3,648,290

 
2,581,026

 
21,255,262

Loans acquired with discounts related to credit quality
718,185

 
2,730,495

 
410,254

 
145,406

 
4,004,340

Total
$
4,504,927

 
$
14,119,624

 
$
4,071,237

 
$
2,727,330

 
$
25,423,118

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