Allowance for Loan Losses and Reserve for Unfunded Lending Commitments

Changes in the allowance for loan losses and the reserve for unfunded lending commitments as of the indicated dates and periods are presented below (dollars in thousands):



	Six Months Ended June 30, 2017			Year Ended December 31, 2016			Six Months Ended June 30, 2016
Allowance for Loan Losses
Balance, beginning of period	$	12,801		$	12,601		$	12,601
Provision for loan losses	650			250			100
Charge-offs	(134		)	(326		)	(158		)
Recoveries	315			276			131
Balance, end of period	$	13,632		$	12,801		$	12,674

Reserve for Unfunded Lending Commitments
Balance, beginning of period	$	203		$	184		$	184
Provision for unfunded commitments	4			19			12
Charge-offs	—			—			—
Balance, end of period	$	207		$	203		$	196

The reserve for unfunded loan commitments is included in other liabilities.

The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the six months ended June 30, 2017 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2016:	$	2,095		$	7,355		$	3,303		$	48		$	12,801
Provision for loan losses	77			754			(203		)	22			650
Charge-offs	(23		)	(1		)	(24		)	(86		)	(134		)
Recoveries	212			15			22			66			315
Balance at June 30, 2017:	$	2,361		$	8,123		$	3,098		$	50		$	13,632

Balance at June 30, 2017:

Allowance for Loan Losses
Individually evaluated for impairment	$	5		$	—		$	10		$	—		$	15
Collectively evaluated for impairment	2,295			8,035			2,832			50			13,212
Acquired impaired loans	61			88			256			—			405
Total	$	2,361		$	8,123		$	3,098		$	50		$	13,632

Loans
Individually evaluated for impairment	$	96		$	1,294		$	1,896		$	14		$	3,300
Collectively evaluated for impairment	235,899			707,480			310,028			4,946			1,258,353
Acquired impaired loans	423			13,641			12,961			15			27,040
Total	$	236,418		$	722,415		$	324,885		$	4,975		$	1,288,693

The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the year ended December 31, 2016 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2015:	$	2,065		$	6,930		$	3,546		$	60		$	12,601
Provision for loan losses	30			403			(224		)	41			250
Charge-offs	(40		)	(10		)	(87		)	(189		)	(326		)
Recoveries	40			32			68			136			276
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 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.