ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2023

Changes in the allowance for credit losses for loans for the years ended December 31, 2023, 2022, and 2021 were as follows, in thousands:


	2023		2022		2021
Balance at beginning of year	$	109,483	$	110,088	$	131,606



Provision (benefit) for credit losses	25,435		10,636		(17,706)
Recoveries on loans previously charged-off	7,262		7,055		4,931
Charge-offs on loans	(19,614)		(18,296)		(8,743)
Balance at end of year	$	122,566	$	109,483	$	110,088

Changes in the allowance for credit losses for loans by loan category for the years ended December 31, 2023, and December 31, 2022, were as follows, in thousands:


	Balance at 12/31/2022		Charge-offs		Recoveries		Provision (Benefit)		Balance at 12/31/2023
Commercial and industrial	$	29,071	$	(8,622)	$	5,069	$	15,161	$	40,679

Owner occupied commercial real estate	13,948		(870)		113		3,965		17,156
Non-owner occupied commercial real estate	16,539		(627)		268		1,069		17,249
Real estate construction	29,998		(316)		26		(935)		28,773
Agricultural and agricultural real estate	2,634		(5,319)		11		6,966		4,292
Residential real estate	7,711		(183)		19		(1,702)		5,845
Consumer	9,582		(3,677)		1,756		911		8,572
Total	$	109,483	$	(19,614)	$	7,262	$	25,435	$	122,566


	Balance at 12/31/2021		Charge-offs		Recoveries		Provision (Benefit)		Balance at 12/31/2022
Commercial and industrial	$	27,738	$	(6,964)	$	4,951	$	3,346	$	29,071

Owner occupied commercial real estate	19,214		(129)		112		(5,249)		13,948
Non-owner occupied commercial real estate	17,908		(193)		60		(1,236)		16,539
Real estate construction	22,538		(35)		13		7,482		29,998
Agricultural and agricultural real estate	5,213		(3,217)		653		(15)		2,634
Residential real estate	8,427		(307)		—		(409)		7,711
Consumer	9,050		(7,451)		1,266		6,717		9,582
Total	$	110,088	$	(18,296)	$	7,055	$	10,636	$	109,483

Changes in the allowance for credit losses on unfunded commitments for the years ended December 31, 2023 and December 31, 2022, were as follows:


	For the Years Ended December 31,
	2023		2022
Beginning balance	$	20,196	$	15,462


Provision	(3,728)		4,734
Ending balance	$	16,468	$	20,196

Management allocates the allowance for credit losses by pools of risk within each loan portfolio. The total allowance for credit losses is available to absorb losses from any segment of the loan portfolio.