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Allowance for Credit Losses
 9 Months Ended
Sep. 30, 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 September 30, 2019 and December 31, 2018.
The following table summarizes the allowance for credit losses at September 30, 2019 and December 31, 2018: 
 
September 30,
2019
 
December 31,
2018
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for loan losses
$
161,853

 
$
151,859

Allowance for unfunded letters of credit
2,917

 
4,436

Total allowance for credit losses
$
164,770

 
$
156,295


The following table summarizes the provision for credit losses for the periods indicated:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
 
(in thousands)
Components of provision for credit losses:
 
 
 
 
 
 
 
Provision for loan losses
$
8,757

 
$
6,432

 
$
20,319

 
$
23,726

Provision for unfunded letters of credit
(57
)
 
120

 
(1,519
)
 
916

Total provision for credit losses
$
8,700

 
$
6,552

 
$
18,800

 
$
24,642



The following tables detail activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2019 and 2018:
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
Three Months Ended
September 30, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
94,384

 
$
48,978

 
$
5,219

 
$
6,524

 
$
155,105

Loans charged-off
(527
)
 
(158
)
 
(111
)
 
(2,191
)
 
(2,987
)
Charged-off loans recovered
330

 
28

 
3

 
617

 
978

Net (charge-offs) recoveries
(197
)
 
(130
)
 
(108
)
 
(1,574
)
 
(2,009
)
Provision for loan losses
6,815

 
(77
)
 
191

 
1,828

 
8,757

Ending balance
$
101,002

 
$
48,771

 
$
5,302

 
$
6,778

 
$
161,853

Three Months Ended
September 30, 2018

 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
74,257

 
$
53,812

 
$
4,624

 
$
6,069

 
$
138,762

Loans charged-off
(833
)
 
—

 
—

 
(1,150
)
 
(1,983
)
Charged-off loans recovered
1,131

 
12

 
9

 
600

 
1,752

Net recoveries (charge-offs)
298

 
12

 
9

 
(550
)
 
(231
)
Provision for loan losses
9,442

 
(3,694
)
 
286

 
398

 
6,432

Ending balance
$
83,997

 
$
50,130

 
$
4,919

 
$
5,917

 
$
144,963


 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
Nine Months Ended
September 30, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
90,956

 
$
49,650

 
$
5,041

 
$
6,212

 
$
151,859

Loans charged-off
(7,882
)
 
(158
)
 
(126
)
 
(5,971
)
 
(14,137
)
Charged-off loans recovered
2,008

 
71

 
13

 
1,720

 
3,812

Net (charge-offs) recoveries
(5,874
)
 
(87
)
 
(113
)
 
(4,251
)
 
(10,325
)
Provision for loan losses
15,920

 
(792
)
 
374

 
4,817

 
20,319

Ending balance
$
101,002

 
$
48,771

 
$
5,302

 
$
6,778

 
$
161,853

Nine Months Ended
September 30, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans charged-off
(1,606
)
 
(348
)
 
(167
)
 
(3,783
)
 
(5,904
)
Charged-off loans recovered
4,057

 
396

 
269

 
1,563

 
6,285

Net recoveries (charge-offs)
2,451

 
48

 
102

 
(2,220
)
 
381

Provision for loan losses
24,314

 
(4,872
)
 
1,212

 
3,072

 
23,726

Ending balance
$
83,997

 
$
50,130

 
$
4,919

 
$
5,917

 
$
144,963


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 September 30, 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)
September 30, 2019
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
35,730

 
$
1,287

 
$
525

 
$
57

 
$
37,599

Collectively evaluated for impairment
65,272

 
47,484

 
4,777

 
6,721

 
124,254

Total
$
101,002

 
$
48,771

 
$
5,302

 
$
6,778

 
$
161,853

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
110,539

 
$
50,124

 
$
11,656

 
$
735

 
$
173,054

Collectively evaluated for impairment
3,927,525

 
12,456,271

 
3,758,844

 
2,714,297

 
22,856,937

Loans acquired with discounts related to credit quality
657,544

 
2,396,649

 
362,831

 
120,144

 
3,537,168

Total
$
4,695,608

 
$
14,903,044

 
$
4,133,331

 
$
2,835,176

 
$
26,567,159

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