For each loan segment, general allowances are provided for loans that are collectively evaluated for impairment, which is based on quantitative factors, principally historical loss trends for the respective segment, adjusted for qualitative factors. The historical loss factor is based on the average charge -offs for the last two calendar years of the Bank and a peer group of Pennsylvania banks of relative equal size.  In addition to the quantitative analysis, additional reserves are allocated on loans collectively evaluated for impairment based on additional qualitative factors. The qualitative factors used by management to adjust the historical loss factor to the total loss allocation, range from 0 -40 basis points per factor. Factors include local unemployment, national gross domestic product, real estate collateral trends, changes in lending policies,  percentage of classified loans, portfolio growth and composition, recent past due loan ratios and lending staff experience.  Loans with principal or interest payments 90 or more days past due are considered for potential charge -off. Commercial purpose loans are individually reviewed and a charge -off recognized when it is unlikely that the loan balance will be collected in full. Consumer purpose loans secured by real estate are individually reviewed. An appropriate loss will be recognized when it is determined that the value of the real estate collateral is not sufficient to pay the loan in full.  Activity in the allowance for loan losses for the years ended December 31,  2013 and 2012 is as follows ( in thousands):  Construction and Land Residential Commercial December 31, 2013 Commercial Development Farmland Real Estate Real Estate Consumer Unallocated Total Allowance for loan losses:  Beginning balance 729 67 13 559 593 13 246 $  2, 220 Charge -offs 256 179 435 Recoveries 35 1 36 Provision 7 46 98 36 158 9)  148 484 Ending balance 515 113 ill 595 572 5 394 $  2, 305 Ending balance:  Individually evaluated for impairment 40 110 146 296 Collectively evaluated for impairment 475 113 1 449 572 5 394 $  2, 009 Loan receivables:  Ending balance 56, 797 11, 602 1, 773 71, 937 78,009 724 220, 842 Ending balance:  Individually evaluated for impairment 208 1, 041 1, 823 682 3, 754 Collectively evaluated for impairment 56, 589 11, 602 732 70, 114 77,327 724 217, 088 23