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 September 30, 2017
Beginning balance	$	8,598		$	3,212		$	14,034		$	3,370		$	18,184		$	2,780	$	2,650	$	—	$	—	$	52,828
Provision (credit) for loan and lease losses	(690		)	(207		)	(526		)	(134		)	(541		)	813		1,159		—		—		(126		)
	7,908			3,005			13,508			3,236			17,643			3,593		3,809		—		—		52,702
Charge-offs	429			—			—			—			—			333		1,376		—		—		2,138
Recoveries	165			40			124			6			7			65		246		—		—		653
Net charge-offs (recoveries)	264			(40		)	(124		)	(6		)	(7		)	268		1,130		—		—		1,485
Ending balance	$	7,644		$	3,045		$	13,632		$	3,242		$	17,650		$	3,325	$	2,679	$	—	$	—	$	51,217

Three Months Ended September 30, 2016
Beginning balance	$	4,442		$	3,823		$	14,192		$	3,446		$	27,448		$	2,573	$	2,840	$	—	$	2,000	$	60,764
Provision (credit) for loan and lease losses	20			(1,528		)	(451		)	562			(1,206		)	658		1,202		—		—		(743		)
	4,462			2,295			13,741			4,008			26,242			3,231		4,042		—		2,000		60,021
Charge-offs	465			—			—			—			—			409		940		—		—		1,814
Recoveries	555			91			173			4			128			115		111		—		—		1,177
Net charge-offs (recoveries)	(90		)	(91		)	(173		)	(4		)	(128		)	294		829		—		—		637
Ending balance	$	4,552		$	2,386		$	13,914		$	4,012		$	26,370		$	2,937	$	3,213	$	—	$	2,000	$	59,384



				Real Estate
	Commercial, Financial & Agricultural			Construction			Residential Mortgage			Home Equity			Commercial Mortgage			Consumer - Auto		Consumer - Other			Leases		Unallocated			Total
	(dollars in thousands)
Nine Months Ended September 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	(403		)	(1,296		)	(2,280		)	(295		)	(1,600		)	987		2,399			—		—			(2,488		)
	8,234			2,928			12,775			3,207			17,504			3,987		5,508			—		—			54,143
Charge-offs	1,266			—			—			—			—			1,205		3,471			—		—			5,942
Recoveries	676			117			857			35			146			543		642			—		—			3,016
Net charge-offs (recoveries)	590			(117		)	(857		)	(35		)	(146		)	662		2,829			—		—			2,926
Ending balance	$	7,644		$	3,045		$	13,632		$	3,242		$	17,650		$	3,325	$	2,679		$	—	$	—		$	51,217

Nine Months Ended September 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	(2,888		)	(6,177		)	(1,119		)	916			4,368			2,294		(126		)	—		(140		)	(2,872		)
	4,017			2,277			13,523			4,012			26,215			5,185		3,213			—		2,000			60,442
Charge-offs	1,089			—			—			—			—			3,596		—			—		—			4,685
Recoveries	1,624			109			391			—			155			1,348		—			—		—			3,627
Net charge-offs (recoveries)	(535		)	(109		)	(391		)	—			(155		)	2,248		—			—		—			1,058
Ending balance	$	4,552		$	2,386		$	13,914		$	4,012		$	26,370		$	2,937	$	3,213		$	—	$	2,000		$	59,384

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

Our Provision was a credit of $0.1 million and $2.5 million in the three and nine months ended September 30, 2017, compared to a credit of $0.7 million and $2.9 million in the three and nine months ended September 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. 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.