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

3 Months Ended

Jun. 30, 2022

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 and six months ended June 30, 2022 and June 30, 2021:


	Commercial, Financial and Agricultural				Real Estate
(dollars in thousands)	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Three Months Ended June 30, 2022
Beginning balance	$	36	$	9,562	$	3,836	$	11,043	$	4,641	$	16,055	$	19,581	$	64,754


Provision (credit) for credit losses on loans	(21)		(1,565)		(833)		1,688		(596)		1,803		980		1,456
Subtotal	15		7,997		3,003		12,731		4,045		17,858		20,561		66,210
Charge-offs	—		487		—		—		—		—		1,390		1,877
Recoveries	—		215		62		36		—		—		565		878
Net charge-offs (recoveries)	—		272		(62)		(36)		—		—		825		999
Ending balance	$	15	$	7,725	$	3,065	$	12,767	$	4,045	$	17,858	$	19,736	$	65,211

Three Months Ended June 30, 2021
Beginning balance	$	489	$	15,464	$	5,047	$	15,357	$	5,251	$	22,734	$	17,211	$	81,553


Provision (credit) for credit losses on loans	(133)		(1,925)		(354)		1,368		1,058		(3,265)		288		(2,963)
Subtotal	356		13,539		4,693		16,725		6,309		19,469		17,499		78,590
Charge-offs	—		401		—		—		—		—		1,523		1,924
Recoveries	—		276		—		186		—		65		588		1,115
Net charge-offs (recoveries)	—		125		—		(186)		—		(65)		935		809
Ending balance	$	356	$	13,414	$	4,693	$	16,911	$	6,309	$	19,534	$	16,564	$	77,781


	Commercial, Financial and Agricultural				Real Estate
(dollars in thousands)	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Six Months Ended June 30, 2022
Beginning balance	$	77	$	10,314	$	3,908	$	12,463	$	4,509	$	18,411	$	18,415	$	68,097


Provision (credit) for credit losses on loans	(62)		(2,413)		(905)		156		(464)		(553)		2,766		(1,475)
Subtotal	15		7,901		3,003		12,619		4,045		17,858		21,181		66,622
Charge-offs	—		741		—		—		—		—		2,606		3,347
Recoveries	—		565		62		148		—		—		1,161		1,936
Net charge-offs (recoveries)	—		176		(62)		(148)		—		—		1,445		1,411
Ending balance	$	15	$	7,725	$	3,065	$	12,767	$	4,045	$	17,858	$	19,736	$	65,211

Six Months Ended June 30, 2021
Beginning balance	$	304	$	18,717	$	4,277	$	16,484	$	5,449	$	22,163	$	15,875	$	83,269


Provision (credit) for credit losses on loans	52		(4,658)		416		135		851		(2,702)		1,969		(3,937)
Subtotal	356		14,059		4,693		16,619		6,300		19,461		17,844		79,332
Charge-offs	—		1,010		—		—		—		—		2,621		3,631
Recoveries	—		365		—		292		9		73		1,341		2,080
Net charge-offs (recoveries)	—		645		—		(292)		(9)		(73)		1,280		1,551
Ending balance	$	356	$	13,414	$	4,693	$	16,911	$	6,309	$	19,534	$	16,564	$	77,781

The following table presents the activity in the reserve for off-balance sheet credit exposures, included in other liabilities, during the three and six months ended June 30, 2022 and June 30, 2021.


(dollars in thousands)
Three Months Ended June 30, 2022


Beginning balance	$	4,540
(Credit) provision for off-balance sheet credit exposures	(467)
Ending balance	$	4,073

Three Months Ended June 30, 2021
Beginning balance	$	5,037


(Credit) provision for off-balance sheet credit exposures	(293)
Ending balance	$	4,744

Six Months Ended June 30, 2022
Beginning balance	$	4,804


(Credit) provision for off-balance sheet credit exposures	(731)
Ending balance	$	4,073

Six Months Ended June 30, 2021
Beginning balance	$	4,884


(Credit) provision for off-balance sheet credit exposures	(140)
Ending balance	$	4,744

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

In the three months ended June 30, 2022, our provision for credit losses was a debit of $1.0 million, which consisted of a debit to the provision for credit losses on loans of $1.5 million, offset by a credit to the provision for credit losses on off-balance sheet credit exposures of $0.5 million.

In the six months ended June 30, 2022, our provision for credit losses was a credit of $2.2 million, which consisted of a credit to the provision for credit losses on loans of $1.5 million and a credit to the provision for credit losses on off-balance sheet credit exposures of $0.7 million.

In the three months ended June 30, 2021, our provision for credit loss was a credit of $3.4 million, which consisted of a credit to the provision for credit losses on loans of $3.0 million, a credit to the provision for credit losses on off-balance sheet credit exposures of $0.2 million, and a credit to the provision for accrued interest receivable of $0.2 million.

In the six months ended June 30, 2021, our provision for credit loss was a credit of $4.3 million, which consisted of a credit to the provision for credit losses on loans of $3.9 million, a credit to the provision for credit losses on off-balance sheet credit exposures of $0.2 million, and a credit to the provision for accrued interest receivable of $0.2 million.