Changes in the allowance for loan losses by segment of loans based on method of impairment for the three and nine months ended September 30, 2014, were as follows:



Allowance for loan losses:			Real Estate		Real Estate		Real Estate
	Commercial		Commercial 1		Construction		Residential		Consumer		Unallocated		Total
Three months ended September 30, 2014
Beginning balance	$	1,991	$	13,228	$	1,754	$	2,373	$	1,464	$	3,046	$	23,856
Charge-offs		512		545		1		925		174		-		2,157
Recoveries		6		878		3		646		98		-		1,631
Provision (release)		41		(744)		141		7		16		539		-
Ending balance	$	1,526	$	12,817	$	1,897	$	2,101	$	1,404	$	3,585	$	23,330

Nine months ended September 30, 2014
Beginning balance	$	2,250	$	16,763	$	1,980	$	2,837	$	1,439	$	2,012	$	27,281
Charge-offs		519		1,634		174		2,752		423		-		5,502
Recoveries		56		1,106		507		1,585		297		-		3,551
(Release) provision		(261)		(3,418)		(416)		431		91		1,573		(2,000)
Ending balance	$	1,526	$	12,817	$	1,897	$	2,101	$	1,404	$	3,585	$	23,330

Ending balance: Individually evaluated for impairment	$	-	$	167	$	107	$	267	$	-	$	-	$	541
Ending balance: Collectively evaluated for impairment	$	1,526	$	12,650	$	1,790	$	1,834	$	1,404	$	3,585	$	22,789

Financing receivables:
Ending balance	$	114,990	$	600,649	$	41,936	$	365,602	$	3,142	$	14,563	$	1,140,882
Ending balance: Individually evaluated for impairment	$	1,645	$	19,515	$	2,585	$	17,041	$	-	$	-	$	40,786
Ending balance: Collectively evaluated for impairment	$	113,345	$	581,134	$	39,351	$	348,561	$	3,142	$	14,563	$	1,100,096

1 As of September 30, 2014, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $7.1 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $1.2 million at September 30, 2014.

Changes in the allowance for loan losses by segment of loans based on method of impairment for the three and nine months ended September 30, 2013, were as follows:



Allowance for loan losses:			Real Estate		Real Estate		Real Estate
	Commercial		Commercial 1		Construction		Residential		Consumer		Unallocated		Total
Three Months Ended
September 30, 2013
Beginning balance	$	3,332	$	18,097	$	2,690	$	5,021	$	1,372	$	4,530	$	35,042
Charge-offs		29		851		53		3,594		168		-		4,695
Recoveries		60		523		15		209		143		-		950
(Release) provision		(469)		(1,354)		(252)		1,352		162		(1,189)		(1,750)
Ending balance	$	2,894	$	16,415	$	2,400	$	2,988	$	1,509	$	3,341	$	29,547

Nine Months Ended
September 30, 2013
Beginning balance	$	4,517	$	20,100	$	3,837	$	4,535	$	1,178	$	4,430	$	38,597
Charge-offs		308		2,377		951		5,193		474		-		9,303
Recoveries		104		3,752		1,265		792		390		-		6,303
(Release) provision		(1,419)		(5,060)		(1,751)		2,854		415		(1,089)		(6,050)
Ending balance	$	2,894	$	16,415	$	2,400	$	2,988	$	1,509	$	3,341	$	29,547

Ending balance: Individually evaluated for impairment	$	-	$	750	$	412	$	988	$	-	$	-	$	2,150
Ending balance: Collectively evaluated for impairment	$	2,894	$	15,665	$	1,988	$	2,000	$	1,509	$	3,341	$	27,397

Financing receivables:
Ending balance	$	98,026	$	554,874	$	30,996	$	376,859	$	2,570	$	14,315	$	1,077,640
Ending balance: Individually evaluated for impairment	$	29	$	24,849	$	7,698	$	21,675	$	-	$	-	$	54,251
Ending balance: Collectively evaluated for impairment	$	97,997	$	530,025	$	23,298	$	355,184	$	2,570	$	14,315	$	1,023,389

1 As of September 30, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $14.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.7 million at September 30, 2013.