Allowance for Credit Losses on Loans

6 Months Ended

Jun. 30, 2024

A summary of changes in the allowance for credit losses, by portfolio type, for the six months ended June 30, 2024 and 2023 are as follows:


	For the Six Months Ended June 30,
	2024
(in thousands)	Beginning Allowance (12/31/2023)		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2024)
Real Estate:
Construction & land development	$	5,845	$	(39)	$	1	$	(919)	$	4,888
Farmland	36		(258)		—		247		25
1- 4 family	6,653		(773)		7		763		6,650
Multifamily	1,614		—		—		101		1,715
Non-farm non-residential	10,596		(4,120)		21		2,440		8,937
Total Real Estate	24,744		(5,190)		29		2,632		22,215
Non-Real Estate:
Agricultural	97		(33)		18		20		102
Commercial and industrial	2,711		(3,570)		126		2,515		1,782
Commercial leases	1,948		—		—		(50)		1,898
Consumer and other	1,426		(2,259)		331		3,154		2,652
Unallocated	—		—		—		1,638		1,638
Total Non-Real Estate	6,182		(5,862)		475		7,277		8,072
Total	$	30,926	$	(11,052)	$	504	$	9,909	$	30,287


	For the Six Months Ended June 30,
	2023
(in thousands)	Beginning Allowance (12/31/2022)		ASC 326 Adoption Day 1 Adjustment		Charge-offs		Recoveries		Provision		Ending Allowance (6/30/2023)
Real Estate:
Construction & land development	$	1,232	$	1,891	$	—	$	—	$	737	$	3,860
Farmland	83		(39)		—		—		3		47
1- 4 family	1,761		3,465		(100)		6		937		6,069
Multifamily	746		1,418		—		—		73		2,237
Non-farm non-residential	9,280		307		(138)		211		278		9,938
Total Real Estate	13,102		7,042		(238)		217		2,028		22,151
Non-Real Estate:
Agricultural	240		(98)		—		407		(407)		142
Commercial and industrial	2,194		2,971		(45)		159		(1,476)		3,803
Commercial leases	4,879		(162)		—		—		(2,525)		2,192
Consumer and other	2,506		(1,042)		(1,265)		216		1,147		1,562
Unallocated	597		(591)		—		—		2,005		2,011
Total Non-Real Estate	10,416		1,078		(1,310)		782		(1,256)		9,710
Total	$	23,518	$	8,120	$	(1,548)	$	999	$	772	$	31,861

Negative provisions are caused by changes in the composition and credit quality of the loan portfolio and by recoveries. The result is an allocation of the credit loss reserve from one category to another.

A summary of the allowance along with loans and leases individually and collectively evaluated are as follows:


	As of June 30, 2024
(in thousands)	Allowance Individually Evaluated		Allowance Collectively Evaluated		Total Allowance for Credit Losses		Loans Individually Evaluated		Loans Collectively Evaluated		Total Loans before Unearned Income
Real Estate:
Construction & land development	$	—	$	4,888	$	4,888	$	1,907	$	353,309	$	355,216
Farmland	—		25		25		5,620		32,873		38,493
1- 4 family	—		6,650		6,650		3,759		453,504		457,263
Multifamily	—		1,715		1,715		537		159,719		160,256
Non-farm non-residential	182		8,755		8,937		40,571		1,123,546		1,164,117
Total Real Estate	182		22,033		22,215		52,394		2,122,951		2,175,345
Non-Real Estate:
Agricultural	11		91		102		1,472		46,380		47,852
Commercial and industrial	152		1,630		1,782		1,487		299,110		300,597
Commercial leases	—		1,898		1,898		3,552		265,876		269,428
Consumer and other	—		2,652		2,652		—		47,836		47,836
Unallocated	—		1,638		1,638		—		—		—
Total Non-Real Estate	163		7,909		8,072		6,511		659,202		665,713
Total	$	345	$	29,942	$	30,287	$	58,905	$	2,782,153	2,841,058
Unearned Income											(7,708)
Total Loans Net of Unearned Income											$	2,833,350

All loans individually evaluated for impairment as of June 30, 2024 were considered collateral dependent loans.


	As of December 31, 2023
(in thousands)	Allowance Individually Evaluated		Allowance Collectively Evaluated		Total Allowance for Credit Losses		Loans Individually Evaluated		Loans Collectively Evaluated		Total Loans before Unearned Income
Real Estate:
Construction & land development	$	—	$	5,845	$	5,845	$	1,389	$	398,046	$	399,435
Farmland	—		36		36		5,670		26,860		32,530
1- 4 family	316		6,337		6,653		5,066		439,784		444,850
Multifamily	—		1,614		1,614		537		118,384		118,921
Non-farm non-residential	3,047		7,549		10,596		46,571		999,294		1,045,865
Total Real Estate	3,363		21,381		24,744		59,233		1,982,368		2,041,601
Non-Real Estate:
Agricultural	1		96		97		1,466		39,542		41,008
Commercial and industrial	758		1,953		2,711		4,464		330,508		334,972
Commercial leases	—		1,948		1,948		1,799		283,616		285,415
Consumer and other	—		1,426		1,426		—		54,485		54,485
Unallocated	—		—		—		—		—		—
Total Non-Real Estate	759		5,423		6,182		7,729		708,151		715,880
Total	$	4,122	$	26,804	$	30,926	$	66,962	$	2,690,519	2,757,481
Unearned Income											(8,773)
Total loans net of unearned income											$	2,748,708

All loans individually evaluated for impairment as of December 31, 2023 were considered collateral dependent loans.