5. ALLOWANCE FOR LOAN AND LEASE LOSSES

The following tables present by class, the activity in the Allowance for the periods indicated:



			Real Estate
	Commercial, Financial & Agricultural		Construction			Residential Mortgage			Home Equity			Commercial Mortgage			Consumer		Leases		Unallocated		Total
	(Dollars in thousands)
Year ended December 31, 2018
Beginning balance	$	7,594	$	1,835		$	14,328		$	3,317		$	16,801		$	6,126	$	—	$	—	$	50,001
Provision (credit) for loan and lease losses	2,082		(6,392		)	(183		)	444			(3,495		)	6,420		—		—		(1,124		)
	9,676		(4,557		)	14,145			3,761			13,306			12,546		—		—		48,877
Charge-offs	2,852		—			—			—			—			7,323		—		—		10,175
Recoveries	1,203		5,759			204			27			52			1,969		—		—		9,214
Net charge-offs (recoveries)	1,649		(5,759		)	(204		)	(27		)	(52		)	5,354		—		—		961
Ending balance	$	8,027	$	1,202		$	14,349		$	3,788		$	13,358		$	7,192	$	—	$	—	$	47,916



				Real Estate
	Commercial, Financial & Agricultural			Construction			Residential Mortgage			Home Equity			Commercial Mortgage			Consumer		Leases		Unallocated		Total
	(Dollars in thousands)
Year ended December 31, 2017
Beginning balance	$	8,637		$	4,224		$	15,055		$	3,502		$	19,104		$	6,109	$	—	$	—	$	56,631
Provision (credit) for loan and lease losses	(705		)	(2,558		)	(1,533		)	(229		)	(2,460		)	4,811		—		—		(2,674		)
	7,932			1,666			13,522			3,273			16,644			10,920		—		—		53,957
Charge-offs	1,704			—			73			—			—			6,294		—		—		8,071
Recoveries	1,366			169			879			44			157			1,500		—		—		4,115
Net charge-offs (recoveries)	338			(169		)	(806		)	(44		)	(157		)	4,794		—		—		3,956
Ending balance	$	7,594		$	1,835		$	14,328		$	3,317		$	16,801		$	6,126	$	—	$	—	$	50,001



				Real Estate
	Commercial, Financial & Agricultural			Construction			Residential Mortgage			Home Equity			Commercial Mortgage			Consumer		Leases		Unallocated			Total
	(Dollars in thousands)
Year ended December 31, 2016
Beginning balance	$	6,905		$	8,454		$	14,642		$	3,096		$	21,847		$	6,230	$	—	$	2,140		$	63,314
Provision (credit) for loan and lease losses	1,217			(4,363		)	(282		)	391			(3,558		)	3,218		—		(2,140		)	(5,517		)
	8,122			4,091			14,360			3,487			18,289			9,448		—		—			57,797
Charge-offs	1,599			—			—			—			209			5,054		—		—			6,862
Recoveries	2,114			133			695			15			1,024			1,715		—		—			5,696
Net charge-offs	(515		)	(133		)	(695		)	(15		)	(815		)	3,339		—		—			1,166
Ending balance	$	8,637		$	4,224		$	15,055		$	3,502		$	19,104		$	6,109	$	—	$	—		$	56,631

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,
	2018		2017		2016
	(Dollars in thousands)
Balance, beginning of year	$	—	$	—	$	51
Provision for loan and lease losses	—		—		—
Other changes	—		—		(51		)
Balance, end of year	$	—	$	—	$	—

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, 2018 and 2017, 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.