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Allowance for Loan Losses and Reserve for Unfunded Lending Commitments
 12 Months Ended
Dec. 31, 2016
Provision for Loan and Lease Losses [Abstract]  
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments
Changes in the allowance for loan losses and the reserve for unfunded lending commitments for each of the years in the three-year period ended December 31, 2016, are presented below (dollars in thousands):
 
Years Ended December 31,
 
2016
 
2015
 
2014
Allowance for Loan Losses
 
 
 
 
 
Balance, beginning of year
$
12,601

 
$
12,427

 
$
12,600

Provision for loan losses
250

 
950

 
400

Charge-offs
(326
)
 
(1,200
)
 
(964
)
Recoveries
276

 
424

 
391

Balance, end of year
$
12,801

 
$
12,601

 
$
12,427

 
 
 
 
 
 
 
Years Ended December 31,
 
2016
 
2015
 
2014
Reserve for Unfunded Lending Commitments
 

 
 

 
 

Balance, beginning of year
$
184

 
$
163

 
$
210

Provision for (recovery) unfunded commitments
19

 
21

 
(47
)
Charge-offs (recovery of)
—

 
—

 
—

Balance, end of year
$
203

 
$
184

 
$
163


The reserve for unfunded loan commitments is included in other liabilities, and the provision for (recovery of) unfunded commitments is included in noninterest expense. The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2016 (dollars in thousands):
  
Commercial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2015
$
2,065

 
$
6,930

 
$
3,546

 
$
60

 
$
—

 
$
12,601

Charge-offs
(40
)
 
(10
)
 
(87
)
 
(189
)
 
—

 
(326
)
Recoveries
40

 
32

 
68

 
136

 
—

 
276

Provision
30

 
403

 
(224
)
 
41

 
—

 
250

Balance at December 31, 2016
$
2,095

 
$
7,355

 
$
3,303

 
$
48

 
$
—

 
$
12,801

 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
—

 
$
—

 
$
23

 
$
—

 
$
—

 
$
23

Collectively evaluated for impairment
2,087

 
7,248

 
3,046

 
48

 
—

 
12,429

Acquired impaired loans
8

 
107

 
234

 
—

 
—

 
349

Total
$
2,095

 
$
7,355

 
$
3,303

 
$
48

 
$
—

 
$
12,801

 
 
 
 
 
 
 
 
 
 
 
 
Loans
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
43

 
$
2,186

 
$
2,588

 
$
27

 
$
—

 
$
4,844

Collectively evaluated for impairment
208,258

 
610,462

 
307,600

 
4,988

 
—

 
1,131,308

Acquired impaired loans
416

 
12,570

 
15,667

 
16

 
—

 
28,669

Total
$
208,717

 
$
625,218

 
$
325,855

 
$
5,031

 
$
—

 
$
1,164,821


The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2015 (dollars in thousands):
 
Commercial
 
Commercial Real Estate
 
Residential Real Estate
 
Consumer
 
Unallocated
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2014
$
1,818

 
$
6,814

 
$
3,715

 
$
80

 
$
—

 
$
12,427

Charge-offs
(175
)
 
(482
)
 
(323
)
 
(220
)
 
—

 
(1,200
)
Recoveries
32

 
124

 
139

 
129

 
—

 
424

Provision
390

 
474

 
15

 
71

 
—

 
950

Balance at December 31, 2015
$
2,065

 
$
6,930

 
$
3,546

 
$
60

 
$
—

 
$
12,601

 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2015:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
—

 
$
9

 
$
26

 
$
—

 
$
—

 
$
35

Collectively evaluated for impairment
2,065

 
6,750

 
3,284

 
60

 
—

 
12,159

Acquired impaired loans
—

 
171

 
236

 
—

 
—

 
407

Total
$
2,065

 
$
6,930

 
$
3,546

 
$
60

 
$
—

 
$
12,601

 
 
 
 
 
 
 
 
 
 
 
 
Loans
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
$
95

 
$
2,245

 
$
2,346

 
$
21

 
$
—

 
$
4,707

Collectively evaluated for impairment
176,798

 
487,177

 
297,281

 
5,684

 
—

 
966,940

Acquired impaired loans
588

 
13,732

 
19,256

 
302

 
—

 
33,878

Total
$
177,481

 
$
503,154

 
$
318,883

 
$
6,007

 
$
—

 
$
1,005,525


The allowance for loan losses is allocated to loan segments based upon historical loss factors, risk grades on individual loans, portfolio analysis of smaller balance, homogenous loans, and qualitative factors.  Qualitative factors include trends in delinquencies, nonaccrual loans, and loss rates; trends in volume and terms of loans, effects of changes in risk selection, underwriting standards, and lending policies; experience of lending officers, other lending staff and loan review; national, regional, and local economic trends and conditions; legal, regulatory and collateral factors; and concentrations of credit.