| 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 as of the indicated dates and periods are presented below (dollars in thousands): | | | | | | | | | | | | | | Nine Months Ended
September 30, 2016 | | Year Ended December 31,
2015 | | Nine Months Ended
September 30, 2015 | Allowance for Loan Losses | | | | | | Balance, beginning of period | $ | 12,601 |
| | $ | 12,427 |
| | $ | 12,427 |
| Provision for loan losses | 200 |
| | 950 |
| | 700 |
| Charge-offs | (245 | ) | | (1,200 | ) | | (883 | ) | Recoveries | 201 |
| | 424 |
| | 367 |
| Balance, end of period | $ | 12,757 |
| | $ | 12,601 |
| | $ | 12,611 |
| | | | | | | Reserve for Unfunded Lending Commitments | |
| | |
| | |
| Balance, beginning of period | $ | 184 |
| | $ | 163 |
| | $ | 163 |
| Provision for unfunded commitments | 11 |
| | 21 |
| | 26 |
| Charge-offs | — |
| | — |
| | — |
| Balance, end of period | $ | 195 |
| | $ | 184 |
| | $ | 189 |
|
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 nine months ended September 30, 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 |
| Charge-offs | (40 | ) | | — |
| | (63 | ) | | (142 | ) | | (245 | ) | Recoveries | 26 |
| | 22 |
| | 56 |
| | 97 |
| | 201 |
| Provision for loan losses | 164 |
| | 39 |
| | (42 | ) | | 39 |
| | 200 |
| Balance at September 30, 2016: | $ | 2,215 |
| | $ | 6,991 |
| | $ | 3,497 |
| | $ | 54 |
| | $ | 12,757 |
| | | | | | | | | | | Balance at September 30, 2016: | |
| | |
| | |
| | |
| | |
| | | | | | | | | | | Allowance for Loan Losses | |
| | |
| | |
| | |
| | |
| Individually evaluated for impairment | $ | — |
| | $ | — |
| | $ | 22 |
| | $ | — |
| | $ | 22 |
| Collectively evaluated for impairment | 2,201 |
| | 6,867 |
| | 3,249 |
| | 54 |
| | 12,371 |
| Acquired impaired loans | 14 |
| | 124 |
| | 226 |
| | — |
| | 364 |
| Total | $ | 2,215 |
| | $ | 6,991 |
| | $ | 3,497 |
| | $ | 54 |
| | $ | 12,757 |
| | | | | | | | | | | Loans | |
| | |
| | |
| | |
| | |
| Individually evaluated for impairment | $ | 92 |
| | $ | 2,286 |
| | $ | 2,683 |
| | $ | 19 |
| | $ | 5,080 |
| Collectively evaluated for impairment | 203,588 |
| | 530,892 |
| | 308,654 |
| | 5,248 |
| | 1,048,382 |
| Acquired impaired loans | 504 |
| | 13,307 |
| | 15,912 |
| | 16 |
| | 29,739 |
| Total | $ | 204,184 |
| | $ | 546,485 |
| | $ | 327,249 |
| | $ | 5,283 |
| | $ | 1,083,201 |
|
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, 2015 (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | | Commercial | | Commercial
Real Estate | | Residential
Real Estate | | Consumer | | 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 for loan losses | 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. |