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ALLOWANCE FOR LOAN AND LEASE LOSSES
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
ALLOWANCE FOR LOAN AND LEASE LOSSES
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
 
Total
 
(Dollars in thousands)
Year ended December 31, 2019
Beginning balance
$
8,027

 
$
1,202

 
$
14,349

 
$
3,788

 
$
13,358

 
$
7,192

 
$
—

 
$
47,916

Provision (credit) for loan and lease losses
1,413

 
(20
)
 
(1,546
)
 
381

 
(2,270
)
 
8,359

 
—

 
6,317

 
9,440

 
1,182

 
12,803

 
4,169

 
11,088

 
15,551

 
—

 
54,233

Charge-offs
2,478

 
—

 
—

 
5

 
—

 
8,265

 
—

 
10,748

Recoveries
1,174

 
610

 
524

 
42

 
25

 
2,111

 
—

 
4,486

Net charge-offs (recoveries)
1,304

 
(610
)
 
(524
)
 
(37
)
 
(25
)
 
6,154

 
—

 
6,262

Ending balance
$
8,136

 
$
1,792

 
$
13,327

 
$
4,206

 
$
11,113

 
$
9,397

 
$
—

 
$
47,971



 
 
 
Real Estate
 
 
 
 
 
 
 
Commercial,
Financial &
Agricultural
 
Construction
 
Residential
Mortgage
 
Home
Equity
 
Commercial
Mortgage
 
Consumer
 
Leases
 
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
 
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
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



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,
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Balance, beginning of year
$
—

 
$
—

 
$
—

Provision for loan and lease losses
235

 
—

 
—

Balance, end of year
$
235

 
$
—

 
$
—



At December 31, 2019 and 2018, 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.