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Allowance for Credit Losses on Loans
 9 Months Ended
Sep. 30, 2022
Credit Loss [Abstract]  
Allowance for Credit Losses on Loans Allowance for Credit Losses on Loans
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.

In accordance with the Corporation’s ACL policy, the methodology is reviewed no less than annually. The methodology incorporates a probability of default and loss given default framework. Loss given default is estimated based on historical credit loss experience. Probability of default is estimated using a regression model that incorporates econometric factors. Econometric factors are selected based on the correlation of the factor to historical credit losses for each portfolio segment.

The following table summarizes the econometric factors utilized for each loan portfolio segment as of the dates indicated:
Econometric Factors
Loan portfolio segmentAt September 30, 2022At December 31, 2021
CRE
NUR & GDP
NUR & GDP
C&I
NUR & GDP
NUR
Residential real estate
NUR & HPI
NUR & HPI
Home equity
NUR & HPI
NUR & HPI
Other consumer
GDP
NUR & GDP


The following table presents the activity in the ACL on loans for the three months ended September 30, 2022:
(Dollars in thousands)CommercialConsumer
CRE
C&I
Total CommercialResidential Real EstateHome EquityOtherTotal ConsumerTotal
Beginning Balance$17,197 $10,332 $27,529 $7,308 $1,040 $440 $1,480 $36,317 
Charge-offs— (10)(10)— — (53)(53)(63)
Recoveries— 1 1 — — 8 8 9 
Provision414 24 438 139 31 (8)23 600 
Ending Balance$17,611 $10,347 $27,958 $7,447 $1,071 $387 $1,458 $36,863 

The following table presents the activity in the ACL on loans for the nine months ended September 30, 2022:
(Dollars in thousands)CommercialConsumer
CREC&ITotal CommercialResidential Real EstateHome EquityOtherTotal ConsumerTotal
Beginning Balance$18,933 $10,832 $29,765 $7,860 $1,069 $394 $1,463 $39,088 
Charge-offs— (19)(19)— — (103)(103)(122)
Recoveries145 22 167 21 4 34 38 226 
Provision(1,467)(488)(1,955)(434)(2)62 60 (2,329)
Ending Balance$17,611 $10,347 $27,958 $7,447 $1,071 $387 $1,458 $36,863 
The following table presents the activity in the ACL on loans for the three months ended September 30, 2021:
(Dollars in thousands)CommercialConsumer
CRE
C&I
Total CommercialResidential Real EstateHome EquityOtherTotal ConsumerTotal
Beginning Balance$21,450 $11,717 $33,167 $6,877 $1,340 $495 $1,835 $41,879 
Charge-offs— 2 2 (57)(183)(11)(194)(249)
Recoveries— — — 5 73 3 76 81 
Provision(613)(392)(1,005)1,131 (112)(14)(126)— 
Ending Balance$20,837 $11,327 $32,164 $7,956 $1,118 $473 $1,591 $41,711 

The following table presents the activity in the ACL on loans for the nine months ended September 30, 2021:
(Dollars in thousands)CommercialConsumer
CREC&ITotal CommercialResidential Real EstateHome EquityOtherTotal ConsumerTotal
Beginning Balance$22,065 $12,228 $34,293 $8,042 $1,300 $471 $1,771 $44,106 
Charge-offs— (304)(304)(107)(183)(36)(219)(630)
Recoveries— 3 3 85 79 19 98 186 
Provision(1,228)(600)(1,828)(64)(78)19 (59)(1,951)
Ending Balance$20,837 $11,327 $32,164 $7,956 $1,118 $473 $1,591 $41,711