ALLOWANCE FOR LOAN AND LEASE LOSSES

The following table presents by class, the activity in the Allowance for the periods indicated:



	Commercial,			Real estate
	Financial & Agricultural			Construction			Mortgage - Residential			Mortgage - Commercial			Consumer		Leases			Unallocated			Total
	(Dollars in thousands)
Year ended December 31, 2015
Beginning balance	$	8,954		$	14,969		$	17,927		$	20,869		$	7,314	$	7		$	4,000		$	74,040
Provision (credit) for loan and lease losses	(1,179		)	(7,395		)	(2,256		)	(4,903		)	1,956		(34		)	(1,860		)	(15,671		)
	7,775			7,574			15,671			15,966			9,270		(27		)	2,140			58,369
Charge-offs	5,658			—			110			838			4,650		—			—			11,256
Recoveries	4,788			880			2,177			6,719			1,610		27			—			16,201
Net charge-offs (recoveries)	870			(880		)	(2,067		)	(5,881		)	3,040		(27		)	—			(4,945		)
Ending balance	$	6,905		$	8,454		$	17,738		$	21,847		$	6,230	$	—		$	2,140		$	63,314

Year ended December 31, 2014
Beginning balance	$	13,196		$	2,774		$	25,272		$	29,947		$	6,576	$	55		$	6,000		$	83,820
Provision (credit) for loan and lease losses	(1,522		)	10,155			(8,198		)	(8,090		)	3,289		(48		)	(2,000		)	(6,414		)
	11,674			12,929			17,074			21,857			9,865		7			4,000			77,406
Charge-offs	5,046			—			139			1,041			3,703		8			—			9,937
Recoveries	2,326			2,040			992			53			1,152		8			—			6,571
Net charge-offs (recoveries)	2,720			(2,040		)	(853		)	988			2,551		—			—			3,366
Ending balance	$	8,954		$	14,969		$	17,927		$	20,869		$	7,314	$	7		$	4,000		$	74,040

Year ended December 31, 2013
Beginning balance	$	4,987		$	4,510		$	27,836		$	50,574		$	2,421	$	85		$	6,000		$	96,413
Provision (credit) for loan and lease losses	9,634			(4,974		)	(2,588		)	(18,099		)	5,093		(376		)	—			(11,310		)
	14,621			(464		)	25,248			32,475			7,514		(291		)	6,000			85,103
Charge-offs	2,812			358			1,083			6,768			1,595		—			—			12,616
Recoveries	1,387			3,596			1,107			4,240			657		346			—			11,333
Net charge-offs	1,425			(3,238		)	(24		)	2,528			938		(346		)	—			1,283
Ending balance	$	13,196		$	2,774		$	25,272		$	29,947		$	6,576	$	55		$	6,000		$	83,820

In accordance with GAAP, loans held for sale and other real estate assets are not included in our assessment of the Allowance.

Changes in the allowance for loan and lease losses for impaired loans (included in the above amounts) were as follows:



	Year Ended December 31,
	2015			2014			2013
	(Dollars in thousands)
Balance, beginning of year	$	1,533		$	349		$	3,011
Provision for loan and lease losses	51			1,354			—
Other changes	(1,533		)	(170		)	(2,662		)
Balance, end of year	$	51		$	1,533		$	349

The amounts included in other changes above represent net charge-offs and net transfers of allocated allowances for loans and leases that were not classified as impaired for the entire year. At December 31, 2015 and 2014, all impaired loans were measured based on the fair value of the underlying collateral for collateral-dependent loans, at the loan’s observable market price, or the net present value of future cash flows, as appropriate.

In determining the amount of our Allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as regulatory requirements and input. If our assumptions prove to be incorrect, our current Allowance may not be sufficient to cover future loan losses and we may experience significant increases to our Provision.