Allowance for Loan Losses (Tables)

The following is a roll forward of the Bank’s allowance for loan losses for the following periods:

(dollars in thousands)	Beginning Balance		Provision for Loan Losses			Charge-offs			Recoveries			Ending Balance
Quarter Ended September 30, 2017:
Real estate loans:
Residential properties	$	8,851	$	469		$	—		$	—		$	9,320
Commercial properties		3,285		281			—			—			3,566
Land and construction		287		66			—			—			353
Commercial and industrial loans		4,093		(119	)		—			(1	)		3,973
Consumer loans		284		4			—			—			288
Total	$	16,800	$	701		$	—		$	(1	)	$	17,500

Nine Months Ended September 30, 2017:
Real estate loans:
Residential properties	$	6,669	$	2,651		$	—		$	—		$	9,320
Commercial properties		2,983		583			—			—			3,566
Land and construction		233		120			—			—			353
Commercial and industrial loans		5,227		(1,492	)		—			238			3,973
Consumer loans		288		—			—			—			288
Total	$	15,400	$	1,862		$	—		$	238		$	17,500

Year Ended December 31, 2016:
Real estate loans:
Residential properties	$	6,799	$	(130	)	$	—		$	—		$	6,669
Commercial properties		1,813		1,051			(50	)		169			2,983
Land and construction		103		130			—			—			233
Commercial and industrial loans		1,649		3,578			—			—			5,227
Consumer loans		236		52			—			—			288
Total	$	10,600	$	4,681		$	(50	)	$	169		$	15,400

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by impairment method as of:

(dollars in thousands)	Allowance for Loan Losses								Unaccreted Credit
	Evaluated for Impairment				Purchased				Component
	Individually		Collectively		Impaired		Total		Other Loans
September 30, 2017:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	9,320	$	—	$	9,320	$	84
Commercial properties		—		3,566		—		3,566		78
Land and construction		—		353		—		353		—
Commercial and industrial loans		1,413		2,560		—		3,973		89
Consumer loans		—		288		—		288		6
Total	$	1,413	$	16,087	$	—	$	17,500	$	257
Loans:
Real estate loans:
Residential properties	$	—	$	2,400,539	$	—	$	2,400,539	$	9,043
Commercial properties		3,603		525,822		165		529,590		10,290
Land and construction		—		31,304		—		31,304		—
Commercial and industrial loans		10,747		247,559		1,652		259,958		14,771
Consumer loans		—		28,469		—		28,469		760
Total	$	14,350	$	3,233,693	$	1,817	$	3,249,860	$	34,864

December 31, 2016:
Allowance for loan losses:
Real estate loans:
Residential properties	$	—	$	6,669	$	—	$	6,669	$	128
Commercial properties		—		2,983		—		2,983		136
Land and construction		—		233		—		233		2
Commercial and industrial loans		—		5,227		—		5,227		147
Consumer loans		—		288		—		288		19
Total	$	—	$	15,400	$	—	$	15,400	$	432
Loans:
Real estate loans:
Residential properties	$	6,093	$	1,774,796	$	—	$	1,780,889	$	12,373
Commercial properties		2,148		474,634		177		476,959		24,796
Land and construction		—		24,100		—		24,100		437
Commercial and industrial loans		753		233,992		3,196		237,941		20,165
Consumer loans		—		32,127		—		32,127		1,266
Total	$	8,994	$	2,539,649	$	3,373	$	2,552,016	$	59,037

Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of:

(dollars in thousands)	Pass		Special Mention		Substandard		Impaired		Total
September 30, 2017:
Real estate loans:
Residential properties	$	2,398,246	$	—	$	2,293	$	—	$	2,400,539
Commercial properties		519,931		5,131		925		3,603		529,590
Land and construction		31,304		—		—		—		31,304
Commercial and industrial loans		246,499		815		1,897		10,747		259,958
Consumer loans		28,469		—		—		—		28,469
Total	$	3,224,449	$	5,946	$	5,115	$	14,350	$	3,249,860

December 31, 2016:
Real estate loans:
Residential properties	$	1,773,296	$	1,500	$	—	$	6,093	$	1,780,889
Commercial properties		470,484		1,913		2,414		2,148		476,959
Land and construction		24,100		—		—		—		24,100
Commercial and industrial loans		219,676		3,625		13,887		753		237,941
Consumer loans		32,127		—		—		—		32,127
Total	$	2,519,683	$	7,038	$	16,301	$	8,994	$	2,552,016

Impaired loans evaluated individually and any related allowance are as follows as of:

	With No Allowance Recorded				With an Allowance Recorded
(dollars in thousands)	Unpaid Principal Balance		Recorded Investment		Unpaid Principal Balance		Recorded Investment		Related Allowance
September 30, 2017:
Real estate loans:
Commercial properties	$	3,603	$	3,603	$	—	$	—	$	—
Commercial and industrial loans		501		501		10,246		10,246		1,413
Total	$	4,104	$	4,104	$	10,246	$	10,246	$	1,413

December 31, 2016:
Real estate loans:
Residential properties	$	6,093	$	6,093	$	—	$	—	$	—
Commercial properties		2,148		2,148		—		—		—
Commercial and industrial loans		753		753		—		—		—
Consumer loans		—		—		—		—		—
Total	$	8,994	$	8,994	$	—	$	—	$	—

The weighted average annualized average balance of the recorded investment for impaired loans, beginning from when the loan became impaired, and any interest income recorded on impaired loans after they became impaired is as follows for the:

	Nine months Ended September 30, 2017				Year Ended December 31, 2016
(dollars in thousands)	Average Recorded Investment		Interest Income after Impairment		Average Recorded Investment		Interest Income after Impairment
Real estate loans:
Residential properties	$	2,427	$	20	$	1,970	$	14
Commercial properties		2,201		16		2,252		17
Commercial and industrial loans		3,792		13		1,673		20
Consumer loans		—		—		4		—
Total	$	8,420	$	49	$	5,899	$	51