Allowance for Loan Losses

The allowance for loan losses is reported as a reduction of outstanding loan balances, and totaled $74.5 million and $76.4 million at June 30, 2014 and December 31, 2013, respectively.

The following tables present a summary of the changes in the allowance for loan losses for the periods indicated:



	As of and for the three months ended June 30,						As of and for the six months ended June 30,
	2014			2013			2014			2013
	(In thousands)
Allowance for loan losses, beginning of period:
Commercial and industrial	$	12,200		$	11,849		$	12,837		$	11,825
Commercial real estate	46,366			50,466			44,979			52,497
Construction and land	4,972			4,787			4,465			5,016
Residential	9,746			11,454			10,732			10,892
Home equity	963			1,146			1,020			1,085
Consumer and other	330			464			322			540
Unallocated	2,028			2,120			2,016			2,202
Total allowance for loan losses, beginning of period	76,605			82,286			76,371			84,057
Provision/ (credit) for loan losses:
Commercial and industrial	357			(794		)	(570		)	(908		)
Commercial real estate	(4,323		)	(1,628		)	(3,266		)	(2,547		)
Construction and land	(654		)	213			(298		)	(823		)
Residential	(229		)	311			(1,677		)	2,138
Home equity	14			55			(43		)	453
Consumer and other	(59		)	(49		)	(252		)	(123		)
Unallocated	(106		)	(108		)	(94		)	(190		)
Total provision/(credit) for loan losses	(5,000		)	(2,000		)	(6,200		)	(2,000		)
Loans charged-off:
Commercial and industrial	(285		)	—			(334		)	(27		)
Commercial real estate	(500		)	(1,100		)	(500		)	(2,339		)
Construction and land	—			(100		)	—			(100		)
Residential	—			(140		)	(88		)	(1,405		)
Home equity	—			—			—			(360		)
Consumer and other	(14		)	(3		)	(22		)	(5		)
Total charge-offs	(799		)	(1,343		)	(944		)	(4,236		)
Recoveries on loans previously charged-off:
Commercial and industrial	869			828			1,208			993
Commercial real estate	2,543			1,006			2,873			1,133
Construction and land	262			23			413			830
Residential	52			—			602			—
Home equity	15			—			15			23
Consumer and other	—			—			209			—
Total recoveries	3,741			1,857			5,320			2,979



	As of and for the three months ended June 30,				As of and for the six months ended June 30,
	2014		2013		2014		2013
	(In thousands)
Allowance for loan losses at end of period:
Commercial and industrial	13,141		11,883		13,141		11,883
Commercial real estate	44,086		48,744		44,086		48,744
Construction and land	4,580		4,923		4,580		4,923
Residential	9,569		11,625		9,569		11,625
Home equity	992		1,201		992		1,201
Consumer and other	257		412		257		412
Unallocated	1,922		2,012		1,922		2,012
Total allowance for loan losses at end of period	$	74,547	$	80,800	$	74,547	$	80,800

The following tables present the Company’s allowance for loan losses and loan portfolio at June 30, 2014 and December 31, 2013 by portfolio segment, disaggregated by method of impairment analysis. The Company had no loans acquired with deteriorated credit quality at June 30, 2014 or December 31, 2013.



	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at June 30, 2014 attributable to:
Loans collectively evaluated	$	13,067	$	43,083	$	4,359	$	8,960
Loans individually evaluated	74		1,003		221		609
Total allowance for loan losses	$	13,141	$	44,086	$	4,580	$	9,569

Recorded investment (loan balance) at June 30, 2014:
Loans collectively evaluated	$	879,366	$	1,749,030	$	147,026	$	2,019,861
Loans individually evaluated	3,097		31,871		3,396		19,211
Total Loans	$	882,463	$	1,780,901	$	150,422	$	2,039,072

	Home equity		Consumer and other		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at June 30, 2014 attributable to:
Loans collectively evaluated	$	992	$	257	$	1,922	$	72,640
Loans individually evaluated	—		—		—		1,907
Total allowance for loan losses	$	992	$	257	$	1,922	$	74,547

Recorded investment (loan balance) at June 30, 2014:
Loans collectively evaluated	$	112,454	$	139,682	$	—	$	5,047,419
Loans individually evaluated	50		1,007		—		58,632
Total Loans	$	112,504	$	140,689	$	—	$	5,106,051



	Commercial and industrial		Commercial real estate		Construction and land		Residential
	(In thousands)
Allowance for loan losses balance at December 31, 2013 attributable to:
Loans collectively evaluated	$	12,737	$	44,249	$	4,229	$	9,820
Loans individually evaluated	100		730		236		912
Total allowance for loan losses	$	12,837	$	44,979	$	4,465	$	10,732

Recorded investment (loan balance) at December 31, 2013:
Loans collectively evaluated	$	862,616	$	1,772,785	$	150,087	$	2,016,160
Loans individually evaluated	3,437		40,609		3,830		16,134
Total Loans	$	866,053	$	1,813,394	$	153,917	$	2,032,294

	Home equity		Consumer and other		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at December 31, 2013 attributable to:
Loans collectively evaluated	$	1,020	$	322	$	2,016	$	74,393
Loans individually evaluated	—		—		—		1,978
Total allowance for loan losses	$	1,020	$	322	$	2,016	$	76,371

Recorded investment (loan balance) at December 31, 2013:
Loans collectively evaluated	$	113,610	$	133,134	$	—	$	5,048,392
Loans individually evaluated	50		7		—		64,067
Total Loans	$	113,660	$	133,141	$	—	$	5,112,459