ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES

3 Months Ended

9 Months Ended

Sep. 30, 2023

ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES

4. ALLOWANCE FOR CREDIT LOSSES AND RESERVE FOR OFF-BALANCE SHEET CREDIT EXPOSURES

The following tables present by class, the activities in the ACL for loans during the periods presented:


(dollars in thousands)	Commercial and Industrial				Real Estate
Three Months Ended September 30, 2023	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	1	$	6,945	$	3,654	$	12,233	$	3,965	$	17,365	$	19,686	$	63,849


Provision (credit) for credit losses on loans	(1)		(329)		953		1,727		(913)		1,738		1,351		4,526
Subtotal	—		6,616		4,607		13,960		3,052		19,103		21,037		68,375
Charge-offs	—		402		—		—		—		—		4,710		5,112
Recoveries	—		261		1		10		—		—		982		1,254
Net charge-offs (recoveries)	—		141		(1)		(10)		—		—		3,728		3,858
Ending balance	$	—	$	6,475	$	4,608	$	13,970	$	3,052	$	19,103	$	17,309	$	64,517


(dollars in thousands)	Commercial and Industrial				Real Estate
Three Months Ended September 30, 2022	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	15	$	7,725	$	3,065	$	12,767	$	4,045	$	17,858	$	19,736	$	65,211


Provision (credit) for credit losses on loans	(11)		(483)		(452)		(1,150)		(157)		(28)		3,012		731
Subtotal	4		7,242		2,613		11,617		3,888		17,830		22,748		65,942
Charge-offs	—		550		—		—		—		—		1,912		2,462
Recoveries	—		220		14		14		36		—		618		902
Net charge-offs (recoveries)	—		330		(14)		(14)		(36)		—		1,294		1,560
Ending balance	$	4	$	6,912	$	2,627	$	11,631	$	3,924	$	17,830	$	21,454	$	64,382

In the three months ended September 30, 2023, we recorded a provision for credit losses of $4.9 million, which consisted of a provision for credit losses on loans of $4.5 million and a provision for credit losses on off-balance sheet credit exposures of $0.4 million.

In the three months ended September 30, 2022, we recorded a provision for credit losses of $0.4 million, which consisted of a debit to the provision for credit losses on loans of $0.7 million and a credit to the provision for credit losses on off-balance sheet credit exposures of $0.3 million.

The following tables present by class, the activities in the ACL for loans for the periods presented:

The following table presents the activities in the reserve for off-balance sheet credit exposures, included in other liabilities, during the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022
Beginning balance	$	3,664	$	4,073	$	3,243	$	4,804


Provision (credit) for off-balance sheet credit exposures	348		(369)		769		(1,100)
Ending balance	$	4,012	$	3,704	$	4,012	$	3,704


(dollars in thousands)	Commercial and Industrial				Real Estate
Nine Months Ended September 30, 2023	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	2	$	6,822	$	2,867	$	11,804	$	4,114	$	17,902	$	20,227	$	63,738


Provision (credit) for credit losses on loans	(2)		560		1,740		2,096		(1,077)		1,201		5,758		10,276
Subtotal	—		7,382		4,607		13,900		3,037		19,103		25,985		74,014
Charge-offs	—		1,543		—		—		—		—		11,269		12,812
Recoveries	—		636		1		70		15		—		2,593		3,315
Net charge-offs (recoveries)	—		907		(1)		(70)		(15)		—		8,676		9,497
Ending balance	$	—	$	6,475	$	4,608	$	13,970	$	3,052	$	19,103	$	17,309	$	64,517


(dollars in thousands)	Commercial and Industrial				Real Estate
Nine Months Ended September 30, 2022	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	77	$	10,314	$	3,908	$	12,463	$	4,509	$	18,411	$	18,415	$	68,097


Provision (credit) for credit losses on loans	(73)		(2,896)		(1,357)		(994)		(621)		(581)		5,778		(744)
Subtotal	4		7,418		2,551		11,469		3,888		17,830		24,193		67,353
Charge-offs	—		1,291		—		—		—		—		4,518		5,809
Recoveries	—		785		76		162		36		—		1,779		2,838
Net charge-offs (recoveries)	—		506		(76)		(162)		(36)		—		2,739		2,971
Ending balance	$	4	$	6,912	$	2,627	$	11,631	$	3,924	$	17,830	$	21,454	$	64,382

In the nine months ended September 30, 2023, we recorded a provision for credit losses of $11.0 million, which consisted of a provision for credit losses on loans of $10.3 million and a provision for credit losses on off-balance sheet credit exposures of $0.7 million.

In the nine months ended September 30, 2022, we recorded a credit to the provision for credit loss of $1.8 million, which consisted of a credit to the provision for credit losses on loans of $0.7 million, a credit to the provision for credit losses on off-balance sheet credit exposures of $1.1 million.