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

3 Months Ended

Mar. 31, 2023

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, 2023 and March 31, 2022:


(dollars in thousands)	Commercial, Financial and Agricultural				Real Estate
Three Months Ended March 31, 2023	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	2	$	6,822	$	2,867	$	11,804	$	4,114	$	17,902	$	20,227	$	63,738


Provision (credit) for credit losses on loans	(1)		837		220		(44)		(77)		(430)		1,110		1,615
Subtotal	1		7,659		3,087		11,760		4,037		17,472		21,337		65,353
Charge-offs	—		779		—		—		—		—		2,686		3,465
Recoveries	—		250		—		53		—		—		908		1,211
Net charge-offs (recoveries)	—		529		—		(53)		—		—		1,778		2,254
Ending balance	$	1	$	7,130	$	3,087	$	11,813	$	4,037	$	17,472	$	19,559	$	63,099

(dollars in thousands)	Commercial, Financial and Agricultural				Real Estate
Three Months Ended March 31, 2022	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	77	$	10,314	$	3,908	$	12,463	$	4,509	$	18,411	$	18,415	$	68,097


Provision (credit) for credit losses on loans	(41)		(848)		(72)		(1,532)		132		(2,356)		1,786		(2,931)
Subtotal	36		9,466		3,836		10,931		4,641		16,055		20,201		65,166
Charge-offs	—		254		—		—		—		—		1,216		1,470
Recoveries	—		350		—		112		—		—		596		1,058
Net charge-offs (recoveries)	—		(96)		—		(112)		—		—		620		412
Ending balance	$	36	$	9,562	$	3,836	$	11,043	$	4,641	$	16,055	$	19,581	$	64,754

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

In the three months ended March 31, 2023, we recorded a provision for credit losses of $1.9 million, which consisted of a provision for credit losses on loans of $1.6 million and a provision for credit losses on off-balance sheet credit exposures of $0.3 million.

In the three months ended March 31, 2022, we recorded a credit to the provision for credit losses of $3.2 million, which consisted of a credit to the provision for credit losses on loans of $2.9 million and a credit to the provision for credit losses on off-balance sheet credit exposures of $0.3 million.

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, 2023 and March 31, 2022.


	Three Months Ended March 31,
(dollars in thousands)	2023		2022
Beginning balance	$	3,243	$	4,804


Provision (credit) for off-balance sheet credit exposures	237		(264)
Ending balance	$	3,480	$	4,540