ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2020

ALLOWANCE FOR CREDIT LOSSES

Changes in the allowance for credit losses for loans for the years ended December 31, 2020, 2019 and 2018 were as follows, in thousands:


	2020		2019		2018
Balance at beginning of year	$	70,395	$	61,963	$	55,686
Impact of the adoption of ASU 2016-13 on January 1, 2020	12,071		—		—
Adjusted balance at January 1, 2020	82,466		61,963		55,686
Allowance for purchased credit deteriorated loans	12,313		—		—
Provision for credit losses	65,745		16,657		24,013
Recoveries on loans previously charged-off	3,804		5,365		3,549
Loans charged-off	(32,722)		(13,590)		(21,285)
Balance at end of year	$	131,606	$	70,395	$	61,963

Changes in the allowance for credit losses for loans by loan category for the years ended December 31, 2020, and December 31, 2019, were as follows, in thousands:


	Balance at 12/31/2019		Impact of ASU 2016-13 adoption on 1/1/2020		Adjusted balance at 1/1/2020		Purchased Credit Deteriorated Allowance		Charge-offs		Recoveries		Provision		Balance at 12/31/2020
Commercial and industrial	$	34,207	$	(272)	$	33,935	$	1,707	$	(14,974)	$	1,277	$	16,873	$	38,818
PPP	—		—		—		—		—		—		—		—
Owner occupied commercial real estate	7,921		(114)		7,807		1,205		(13,671)		205		24,455		20,001
Non-owner occupied commercial real estate	7,584		(2,617)		4,967		6,465		(45)		30		9,456		20,873
Real estate construction	8,677		6,335		15,012		603		(105)		220		4,350		20,080
Agricultural and agricultural real estate	5,680		(387)		5,293		1,848		(1,201)		971		218		7,129
Residential real estate	1,504		4,817		6,321		410		(515)		108		5,611		11,935
Consumer	4,822		4,309		9,131		75		(2,211)		993		4,782		12,770
Total	$	70,395	$	12,071	$	82,466	$	12,313	$	(32,722)	$	3,804	$	65,745	$	131,606


	12/31/2018		Charge-offs		Recoveries		Provision		12/31/2019
Commercial and industrial	$	29,958	$	(7,129)	$	2,462	$	8,916	$	34,207
PPP	—		—		—		—		—
Owner occupied commercial real estate	6,247		(119)		178		1,615		7,921
Non-owner occupied commercial real estate	7,182		(21)		201		222		7,584
Real estate construction	6,707		(156)		255		1,871		8,677
Agricultural and agricultural real estate	4,916		(2,633)		529		2,868		5,680
Residential real estate	1,813		(458)		139		10		1,504
Consumer	5,140		(3,074)		1,601		1,155		4,822
Total	$	61,963	$	(13,590)	$	5,365	$	16,657	$	70,395

Changes in the allowance for credit losses on unfunded commitments for the year ended December 31, 2020, were as follows:


Balance at December 31, 2019	$	248
Impact of ASU 2016-13 adoption on January 1, 2020	13,604
Adjusted balance at January 1, 2020	13,852
Provision	1,428
Balance at December 31, 2020	$	15,280

Prior to the adoption of ASU 2016-13, the allowance for credit losses on unfunded commitments was considered immaterial.

Management allocates the allowance for credit losses by pools of risk within each loan portfolio. The allocation of the allowance for credit losses by loan portfolio is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular category. The total allowance for credit losses is available to absorb losses from any segment of the loan portfolio.