Allowance for Loan Losses and Reserve for Unfunded Lending Commitments

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



	Six Months Ended June 30, 2019			Year Ended December 31, 2018			Six Months Ended June 30, 2018
Allowance for Loan Losses
Balance, beginning of period	$	12,805		$	13,603		$	13,603
Provision for (recovery of) loan losses	6			(103		)	(74		)
Charge-offs	(123		)	(1,020		)	(174		)
Recoveries	98			325			153
Balance, end of period	$	12,786		$	12,805		$	13,508

Reserve for Unfunded Lending Commitments
Balance, beginning of period	$	217		$	206		$	206
Provision for unfunded commitments	99			11			13
Charge-offs	—			—			—
Balance, end of period	$	316		$	217		$	219

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, 2019 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2018:	$	2,537		$	7,246		$	2,977		$	45		$	12,805
Provision for (recovery of) loan losses	178			(119		)	(99		)	46			6
Charge-offs	(11		)	(6		)	(20		)	(86		)	(123		)
Recoveries	11			7			26			54			98
Balance at June 30, 2019:	$	2,715		$	7,128		$	2,884		$	59		$	12,786

Balance at June 30, 2019:

Allowance for Loan Losses
Individually evaluated for impairment	$	49		$	—		$	28		$	—		$	77
Collectively evaluated for impairment	2,666			7,097			2,699			59			12,521
Acquired impaired loans	—			31			157			—			188
Total	$	2,715		$	7,128		$	2,884		$	59		$	12,786

Loans
Individually evaluated for impairment	$	57		$	348		$	949		$	—		$	1,354
Collectively evaluated for impairment	338,629			999,082			433,407			12,472			1,783,590
Acquired impaired loans	1,741			33,592			15,949			15			51,297
Total	$	340,427		$	1,033,022		$	450,305		$	12,487		$	1,836,241

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, 2018 (dollars in thousands):



	Commercial			Commercial Real Estate			Residential Real Estate			Consumer			Total
Allowance for Loan Losses
Balance at December 31, 2017:	$	2,413		$	8,321		$	2,825		$	44		$	13,603
Provision for (recovery of) loan losses	842			(1,074		)	89			40			(103		)
Charge-offs	(787		)	(11		)	(86		)	(136		)	(1,020		)
Recoveries	69			10			149			97			325
Balance at December 31, 2018:	$	2,537		$	7,246		$	2,977		$	45		$	12,805

Balance at December 31, 2018:

Allowance for Loan Losses
Individually evaluated for impairment	$	55		$	—		$	9		$	—		$	64
Collectively evaluated for impairment	2,482			7,211			2,822			45			12,560
Acquired impaired loans	—			35			146			—			181
Total	$	2,537		$	7,246		$	2,977		$	45		$	12,805

Loans
Individually evaluated for impairment	$	90		$	376		$	868		$	—		$	1,334
Collectively evaluated for impairment	285,431			742,365			302,657			5,078			1,335,531
Acquired impaired loans	451			10,299			9,846			15			20,611
Total	$	285,972		$	753,040		$	313,371		$	5,093		$	1,357,476

The allowance for loan losses is allocated to loan segments based upon historical loss factors, risk grades on individual 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.