ALLOWANCE FOR LOAN LOSSES

An analysis of the allowance for loan losses for the six month periods ended June 30, 2017 and 2016, and for the year ended December 31, 2016 is as follows:



	Six Months Ended June 30,					Year Ended December 31,
Dollars in thousands	2017			2016		2016
Balance, beginning of year	$	11,674		$	11,472	$	11,472
Charge-offs:
Commercial	4			260		489
Commercial real estate
Owner occupied	3			166		179
Non-owner occupied	65			121		124
Construction and development
Land and land development	3			—		127
Construction	—			—		9
Residential real estate
Non-jumbo	182			118		169
Jumbo	2			—		—
Home equity	12			10		175
Mortgage warehouse lines	—			—		—
Consumer	60			57		98
Other	98			92		185
Total	429			824		1,555
Recoveries:
Commercial	10			62		73
Commercial real estate
Owner occupied	74			17		31
Non-owner occupied	91			6		17
Construction and development
Land and land development	235			12		840
Construction	—			—		—
Real estate - mortgage
Non-jumbo	43			48		136
Jumbo	—			6		6
Home equity	28			2		3
Mortgage warehouse lines	—			—		—
Consumer	50			34		76
Other	56			42		75
Total	587			229		1,257
Net charge-offs (recoveries)	(158		)	595		298
Provision for loan losses	500			500		500
Balance, end of period	$	12,332		$	11,377	$	11,674

Activity in the allowance for loan losses by loan class during the first six months of 2017 is as follows:



	Allowance for loan losses												Allowance related to:								Loans
	Beginning Balance		Charge- offs			Recoveries		Provision			Ending Balance		Loans individua- lly evaluated for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired with deteriora- ted credit quality (PCI)		Total		Loans individua- lly evaluated for impairm- ent		Loans collective- ly evaluated for impairm- ent		Loans acquired with deteriora- ted credit quality (PCI)		Total
Commercial	$	934	$	(4	)	$	10	$	378		$	1,318	$	267	$	1,051	$	—	$	1,318	$	531	$	175,818	$	13	$	176,362
Commercial real estate
Owner occupied	2,109		(3		)	74		247			2,427		196		2,231		—		2,427		7,315		231,097		696		239,108
Non-owner occupied	3,438		(65		)	91		1,323			4,787		—		4,782		5		4,787		9,848		443,677		1,914		455,439
Construction and development
Land and land development	2,263		(3		)	235		(1,886		)	609		531		77		1		609		6,076		68,023		56		74,155
Construction	24		—			—		5			29		—		29		—		29		—		22,967		—		22,967
Residential real estate
Non-jumbo	2,174		(182		)	43		176			2,211		315		1,895		1		2,211		6,539		347,122		1,885		355,546
Jumbo	95		(2		)	—		27			120		18		102		—		120		4,456		58,432		1,011		63,899
Home equity	413		(12		)	28		168			597		—		597		—		597		523		80,669		—		81,192
Mortgage warehouse lines	—		—			—		—			—		—		—		—		—		—		35,068		—		35,068
Consumer	121		(60		)	50		2			113		—		113		—		113		33		37,597		—		37,630
Other	103		(98		)	56		60			121		—		121		—		121		—		9,049		—		9,049
Total	$	11,674	$	(429	)	$	587	$	500		$	12,332	$	1,327	$	10,998	$	7	$	12,332	$	35,321	$	1,509,519	$	5,575	$	1,550,415