5. 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			Residential Mortgage			Home Equity			Commercial Mortgage			Consumer - Auto			Consumer - Other		Leases		Unallocated		Total
	(dollars in thousands)
Three Months Ended June 30, 2017
Beginning balance	$	8,346		$	3,718		$	14,892		$	3,425		$	19,187		$	2,976		$	2,825	$	—	$	—	$	55,369
Provision (credit) for loan and lease losses	353			(562		)	(1,495		)	(82		)	(1,131		)	(128		)	763		—		—		(2,282		)
	8,699			3,156			13,397			3,343			18,056			2,848			3,588		—		—		53,087
Charge-offs	337			—			—			—			—			352			1,118		—		—		1,807
Recoveries	236			56			637			27			128			284			180		—		—		1,548
Net charge-offs (recoveries)	101			(56		)	(637		)	(27		)	(128		)	68			938		—		—		259
Ending balance	$	8,598		$	3,212		$	14,034		$	3,370		$	18,184		$	2,780		$	2,650	$	—	$	—	$	52,828

Three Months Ended June 30, 2016
Beginning balance	$	7,000		$	4,128		$	14,696		$	3,309		$	25,173		$	2,723		$	3,120	$	—	$	2,000	$	62,149
Provision (credit) for loan and lease losses	(3,006		)	(314		)	(677		)	133			2,261			(158		)	379		—		—		(1,382		)
	3,994			3,814			14,019			3,442			27,434			2,565			3,499		—		2,000		60,767
Charge-offs	272			—			—			—			—			358			777		—		—		1,407
Recoveries	720			9			173			4			14			366			118		—		—		1,404
Net charge-offs (recoveries)	(448		)	(9		)	(173		)	(4		)	(14		)	(8		)	659		—		—		3
Ending balance	$	4,442		$	3,823		$	14,192		$	3,446		$	27,448		$	2,573		$	2,840	$	—	$	2,000	$	60,764



				Real Estate
	Commercial, Financial & Agricultural			Construction			Residential Mortgage			Home Equity			Commercial Mortgage			Consumer - Auto			Consumer - Other		Leases		Unallocated			Total
	(dollars in thousands)
Six Months Ended June 30, 2017
Beginning balance	$	8,637		$	4,224		$	15,055		$	3,502		$	19,104		$	3,000		$	3,109	$	—	$	—		$	56,631
Provision (credit) for loan and lease losses	287			(1,089		)	(1,754		)	(161		)	(1,059		)	174			1,240		—		—			(2,362		)
	8,924			3,135			13,301			3,341			18,045			3,174			4,349		—		—			54,269
Charge-offs	837			—			—			—			—			872			2,095		—		—			3,804
Recoveries	511			77			733			29			139			478			396		—		—			2,363
Net charge-offs (recoveries)	326			(77		)	(733		)	(29		)	(139		)	394			1,699		—		—			1,441
Ending balance	$	8,598		$	3,212		$	14,034		$	3,370		$	18,184		$	2,780		$	2,650	$	—	$	—		$	52,828

Six Months Ended June 30, 2016
Beginning balance	$	6,905		$	8,454		$	14,642		$	3,096		$	21,847		$	2,891		$	3,339	$	—	$	2,140		$	63,314
Provision (credit) for loan and lease losses	(2,908		)	(4,649		)	(656		)	342			5,574			(139		)	447		—		(140		)	(2,129		)
	3,997			3,805			13,986			3,438			27,421			2,752			3,786		—		2,000			61,185
Charge-offs	624			—			—			—			—			738			1,509		—		—			2,871
Recoveries	1,069			18			206			8			27			559			563		—		—			2,450
Net charge-offs (recoveries)	(445		)	(18		)	(206		)	(8		)	(27		)	179			946		—		—			421
Ending balance	$	4,442		$	3,823		$	14,192		$	3,446		$	27,448		$	2,573		$	2,840	$	—	$	2,000		$	60,764

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

Our Provision was a credit of $2.3 million and $2.4 million in the three and six months ended June 30, 2017, compared to a credit of $1.4 million and $2.1 million in the three and six months ended June 30, 2016.

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.