ALLOWANCE FOR LOAN AND LEASE LOSSES

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



				Real Estate
	Commercial, Financial & Agricultural			Construction			Mortgage - Residential			Mortgage - Commercial			Consumer		Leases		Unallocated			Total
	(Dollars in thousands)
Three Months Ended June 30, 2016
Beginning balance	$	7,000		$	4,128		$	18,005		$	25,173		$	5,843	$	—	$	2,000		$	62,149
Provision (credit) for loan and lease losses	(3,006		)	(314		)	(544		)	2,261			221				—			(1,382		)
	3,994			3,814			17,461			27,434			6,064		—		2,000			60,767
Charge-offs	272			—			—			—			1,135		—		—			1,407
Recoveries	720			9			177			14			484		—		—			1,404
Net charge-offs (recoveries)	(448		)	(9		)	(177		)	(14		)	651		—		—			3
Ending balance	$	4,442		$	3,823		$	17,638		$	27,448		$	5,413	$	—	$	2,000		$	60,764

Three Months Ended June 30, 2015
Beginning balance	$	8,791		$	14,305		$	17,057		$	20,161		$	7,119	$	—	$	4,000		$	71,433
Provision (credit) for loan and lease losses	(498		)	(4,099		)	442			(3,715		)	1,050		1		(500		)	(7,319		)
	8,293			10,206			17,499			16,446			8,169		1		3,500			64,114
Charge-offs	4,003			—			50			—			1,214		—		—			5,267
Recoveries	3,279			464			397			3,562			375		—		—			8,077
Net charge-offs (recoveries)	724			(464		)	(347		)	(3,562		)	839		—		—			(2,810		)
Ending balance	$	7,569		$	10,670		$	17,846		$	20,008		$	7,330	$	1	$	3,500		$	66,924



				Real Estate
	Commercial, Financial & Agricultural			Construction			Mortgage - Residential			Mortgage - Commercial			Consumer		Leases			Unallocated			Total
	(Dollars in thousands)
Six Months Ended June 30, 2016
Beginning balance	$	6,905		$	8,454		$	17,738		$	21,847		$	6,230	$	—		$	2,140		$	63,314
Provision (credit) for loan and lease losses	(2,908		)	(4,649		)	(314		)	5,574			308					(140		)	(2,129		)
	3,997			3,805			17,424			27,421			6,538		—			2,000			61,185
Charge-offs	624			—			—			—			2,247		—			—			2,871
Recoveries	1,069			18			214			27			1,122		—			—			2,450
Net charge-offs (recoveries)	(445		)	(18		)	(214		)	(27		)	1,125		—			—			421
Ending balance	$	4,442		$	3,823		$	17,638		$	27,448		$	5,413	$	—		$	2,000		$	60,764

Six Months Ended June 30, 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	(324		)	(4,886		)	(1,902		)	(4,436		)	1,988		(6		)	(500		)	(10,066		)
	8,630			10,083			16,025			16,433			9,302		1			3,500			63,974
Charge-offs	4,934			—			64			—			3,055		—			—			8,053
Recoveries	3,873			587			1,885			3,575			1,083		—			—			11,003
Net charge-offs (recoveries)	1,061			(587		)	(1,821		)	(3,575		)	1,972		—			—			(2,950		)
Ending balance	$	7,569		$	10,670		$	17,846		$	20,008		$	7,330	$	1		$	3,500		$	66,924

Loans held for sale and other real estate assets are not included in our assessment of the Allowance.

Our Provision was a credit of $1.4 million and $2.1 million in the three and six months ended June 30, 2016, respectively, compared to a credit of $7.3 million and $10.1 million in the three and six months ended June 30, 2015, respectively.

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.