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Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Allowance for Loan Losses
Allowance for Loan Losses
The allowance for loan losses is management’s best estimate of inherent risk of loss in the loan portfolio as of the balance sheet date. The Corporation uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology includes: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience.

The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2017:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$9,971

 

$1,195

 

$6,992

 

$18,158

 

$5,252

 

$2,594

 

$26,004

Charge-offs
—

 
—

 
(2
)
 
(2
)
 
—

 
(77
)
 
(79
)
Recoveries
—

 
—

 
107

 
107

 
4

 
10

 
121

Provision
890

 
310

 
(800
)
 
400

 
103

 
(103
)
 
400

Ending Balance

$10,861

 

$1,505

 

$6,297

 

$18,663

 

$5,359

 

$2,424

 

$26,446


(1) Commercial & industrial loans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2016:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$9,140

 

$1,758

 

$8,202

 

$19,100

 

$5,460

 

$2,509

 

$27,069

Charge-offs
(1,253
)
 
—

 
(8
)
 
(1,261
)
 
(136
)
 
(78
)
 
(1,475
)
Recoveries
4

 
—

 
26

 
30

 
2

 
11

 
43

Provision
695

 
(115
)
 
41

 
621

 
37

 
(158
)
 
500

Ending Balance

$8,586

 

$1,643

 

$8,261

 

$18,490

 

$5,363

 

$2,284

 

$26,137

(1) Commercial & industrial loans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology:
(Dollars in thousands)
March 31, 2017
 
December 31, 2016
 
Loans
 
Related Allowance
 
Loans
 
Related Allowance
Loans Individually Evaluated for Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$9,773

 

$461

 

$9,776

 

$448

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
6,863

 
201

 
7,098

 
3

Residential real estate
16,176

 
183

 
15,661

 
151

Consumer
964

 
16

 
1,280

 
4

Subtotal
33,776

 
861

 
33,815

 
606

Loans Collectively Evaluated for Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$1,066,875

 

$10,400

 

$1,064,410

 

$9,523

Construction & development
123,841

 
1,505

 
121,371

 
1,195

Commercial & industrial
555,147

 
6,096

 
569,011

 
6,989

Residential real estate
1,115,034

 
5,176

 
1,107,087

 
5,101

Consumer
330,187

 
2,408

 
338,677

 
2,590

Subtotal
3,191,084

 
25,585

 
3,200,556

 
25,398

Total

$3,224,860

 

$26,446

 

$3,234,371

 

$26,004