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

3 Months Ended

Sep. 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 nine months ended September 30, 2022 and September 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 September 30, 2022
Beginning balance	$	15	$	7,725	$	3,065	$	12,767	$	4,045	$	17,858	$	19,736	$	65,211


Provision (credit) for credit losses on loans	(11)		(483)		(452)		(1,150)		(157)		(28)		3,012		731
Subtotal	4		7,242		2,613		11,617		3,888		17,830		22,748		65,942
Charge-offs	—		550		—		—		—		—		1,912		2,462
Recoveries	—		220		14		14		36		—		618		902
Net charge-offs (recoveries)	—		330		(14)		(14)		(36)		—		1,294		1,560
Ending balance	$	4	$	6,912	$	2,627	$	11,631	$	3,924	$	17,830	$	21,454	$	64,382

Three Months Ended September 30, 2021
Beginning balance	$	356	$	13,414	$	4,693	$	16,911	$	6,309	$	19,534	$	16,564	$	77,781


Provision (credit) for credit losses on loans	(171)		(494)		(459)		(2,409)		(594)		(405)		1,563		(2,969)
Subtotal	185		12,920		4,234		14,502		5,715		19,129		18,127		74,812
Charge-offs	—		334		—		—		—		—		829		1,163
Recoveries	—		281		—		53		—		—		604		938
Net charge-offs (recoveries)	—		53		—		(53)		—		—		225		225
Ending balance	$	185	$	12,867	$	4,234	$	14,555	$	5,715	$	19,129	$	17,902	$	74,587


	Commercial, Financial and Agricultural				Real Estate
(dollars in thousands)	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Nine Months Ended September 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	(73)		(2,896)		(1,357)		(994)		(621)		(581)		5,778		(744)
Subtotal	4		7,418		2,551		11,469		3,888		17,830		24,193		67,353
Charge-offs	—		1,291		—		—		—		—		4,518		5,809
Recoveries	—		785		76		162		36		—		1,779		2,838
Net charge-offs (recoveries)	—		506		(76)		(162)		(36)		—		2,739		2,971
Ending balance	$	4	$	6,912	$	2,627	$	11,631	$	3,924	$	17,830	$	21,454	$	64,382

Nine Months Ended September 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	(119)		(5,152)		(43)		(2,274)		257		(3,107)		3,532		(6,906)
Subtotal	185		13,565		4,234		14,210		5,706		19,056		19,407		76,363
Charge-offs	—		1,344		—		—		—		—		3,450		4,794
Recoveries	—		646		—		345		9		73		1,945		3,018
Net charge-offs (recoveries)	—		698		—		(345)		(9)		(73)		1,505		1,776
Ending balance	$	185	$	12,867	$	4,234	$	14,555	$	5,715	$	19,129	$	17,902	$	74,587

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


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


Beginning balance	$	4,073
(Credit) provision for off-balance sheet credit exposures	(369)
Ending balance	$	3,704

Three Months Ended September 30, 2021
Beginning balance	$	4,744


Provision for off-balance sheet credit exposures	334
Ending balance	$	5,078

Nine Months Ended September 30, 2022
Beginning balance	$	4,804


(Credit) provision for off-balance sheet credit exposures	(1,100)
Ending balance	$	3,704

Nine Months Ended September 30, 2021
Beginning balance	$	4,884


Provision for off-balance sheet credit exposures	194
Ending balance	$	5,078

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

In the three months ended September 30, 2022, our provision for credit losses was a debit of $0.4 million, which consisted of a debit to the provision for credit losses on loans of $0.7 million, offset by a credit to the provision for credit losses on off-balance sheet credit exposures of $0.3 million.

In the nine months ended September 30, 2022, our provision for credit losses was a credit of $1.8 million, which consisted of a credit to the provision for credit losses on loans of $0.7 million and a credit to the provision for credit losses on off-balance sheet credit exposures of $1.1 million.

In the three months ended September 30, 2021, our provision for credit loss was a credit of $2.6 million, which consisted of a credit to the provision for credit losses on loans of $3.0 million, and a debit to the provision for credit losses on off-balance sheet credit exposures of $0.4 million.

In the nine months ended September 30, 2021, our provision for credit loss was a credit of $6.9 million, which consisted of a credit to the provision for credit losses on loans of $6.9 million, a debit 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.