Allowance for Credit Losses on Loans

3 Months Ended

Mar. 31, 2022

The ACL on loans is management’s estimate, at the reporting date, of expected credit losses over the expected life of the loans. The level of the ACL on loans is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the calculation of loss given default and the estimation of expected credit losses. Qualitative adjustments are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, that may not be reflected in historical loss rates.

The following table presents the activity in the ACL on loans for the three months ended March 31, 2022:


(Dollars in thousands)	Commercial				Consumer
	CRE	C&I	Total Commercial	Residential Real Estate	Home Equity	Other	Total Consumer	Total
Beginning Balance	$18,933	$10,832	$29,765	$7,860	$1,069	$394	$1,463	$39,088

Charge-offs	—	(5)	(5)	—	—	(31)	(31)	(36)
Recoveries	145	6	151	21	2	10	12	184
Provision	(618)	389	(229)	185	27	17	44	—
Ending Balance	$18,460	$11,222	$29,682	$8,066	$1,098	$390	$1,488	$39,236

The following table presents the activity in the ACL on loans for the three months ended March 31, 2021:


(Dollars in thousands)	Commercial				Consumer
	CRE	C&I	Total Commercial	Residential Real Estate	Home Equity	Other	Total Consumer	Total
Beginning Balance	$22,065	$12,228	$34,293	$8,042	$1,300	$471	$1,771	$44,106

Charge-offs	—	(3)	(3)	(50)	—	(11)	(11)	(64)
Recoveries	—	2	2	33	2	9	11	46
Provision	(768)	162	(606)	(1,556)	129	82	211	(1,951)
Ending Balance	$21,297	$12,389	$33,686	$6,469	$1,431	$551	$1,982	$42,137