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

3 Months Ended

Mar. 31, 2021

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

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

The following table presents by class, the activity in the ACL for loans under ASC 326 during the three months ended March 31, 2021 and March 31, 2020:


	Commercial, Financial and Agricultural				Real Estate
(dollars in thousands)	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Three Months Ended March 31, 2021


Beginning balance	304		18,717		4,277		16,484		5,449		22,163		15,875		83,269
Provision for credit losses on loans	185		(2,733)		770		(1,233)		(207)		563		1,681		(974)

	489		15,984		5,047		15,251		5,242		22,726		17,556		82,295
Charge-offs	—		609		—		—		—		—		1,098		1,707
Recoveries	—		89		—		106		9		8		753		965
Net charge-offs (recoveries)	—		520		—		(106)		(9)		(8)		345		742
Ending balance	$	489	$	15,464	$	5,047	$	15,357	$	5,251	$	22,734	$	17,211	$	81,553



Three Months Ended March 31, 2020
Beginning balance prior to ASC 326	$	—	$	8,136	$	1,792	$	13,327	$	4,206	$	11,113	$	9,397	$	47,971
Impact of adoption of ASC 326	—		(627)		479		608		(1,614)		2,624		2,096		3,566
Beginning balance	—		7,509		2,271		13,935		2,592		13,737		11,493		51,537
Provision for credit losses on loans	—		1,231		655		(935)		(314)		5,779		2,913		9,329
	—		8,740		2,926		13,000		2,278		19,516		14,406		60,866
Charge-offs	—		437		—		—		—		—		2,217		2,654
Recoveries	—		342		131		181		31		2		746		1,433
Net charge-offs (recoveries)	—		95		(131)		(181)		(31)		(2)		1,471		1,221
Ending balance	$	—	$	8,645	$	3,057	$	13,181	$	2,309	$	19,518	$	12,935	$	59,645

The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, during the three months ended March 31, 2021 and March 31, 2020.


(dollars in thousands)
Three Months Ended March 31, 2021


Beginning balance	$	4,884
Provision for off-balance sheet credit exposures	153
Ending balance	$	5,037

Three Months Ended March 31, 2020
Beginning balance prior to ASC 326	$	1,272
Impact of adoption of ASC 326	740
Balance after adoption of ASC 326	2,012
Provision for off-balance sheet credit exposures	1,798
Ending balance	$	3,810

In accordance with GAAP, other real estate assets are not included in our assessment of the ACL.

In the three months ended March 31, 2021, our provision for credit losses was a credit of $0.8 million, which consisted of a credit to the provision for credit losses on loans of $1.0 million and a $0.2 million provision for credit losses on off-balance sheet credit exposures. In the three months ended March 31, 2020, our provision for credit loss was $11.1 million, which consisted of a provision for credit losses on loans of $9.3 million and a $1.8 million provision for credit losses on off-balance sheet credit exposures.