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

3 Months Ended

6 Months Ended

Jun. 30, 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 tables present by class, the activity in the ACL for loans under ASC 326 during the three months ended June 30, 2023 and 2022:


(dollars in thousands)	Commercial, Financial and Agricultural				Real Estate
Three Months Ended June 30, 2023	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
Beginning balance	$	1	$	7,130	$	3,087	$	11,813	$	4,037	$	17,472	$	19,559	$	63,099


Provision (credit) for credit losses on loans	—		52		567		413		(87)		(107)		3,297		4,135
Subtotal	1		7,182		3,654		12,226		3,950		17,365		22,856		67,234
Charge-offs	—		362		—		—		—		—		3,873		4,235
Recoveries	—		125		—		7		15		—		703		850
Net charge-offs (recoveries)	—		237		—		(7)		(15)		—		3,170		3,385
Ending balance	$	1	$	6,945	$	3,654	$	12,233	$	3,965	$	17,365	$	19,686	$	63,849

(dollars in thousands)	Commercial, Financial and Agricultural				Real Estate
Three Months Ended June 30, 2022	SBA PPP		Other		Construction		Residential Mortgage		Home Equity		Commercial Mortgage		Consumer		Total
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

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

In the three months ended June 30, 2023, we recorded a provision for credit losses of $4.3 million, which consisted of a provision for credit losses on loans of $4.1 million and a provision for credit losses on off-balance sheet credit exposures of $0.2 million.

In the three months ended June 30, 2022, we recorded a debit to the provision for credit losses of $1.0 million, which consisted of a debit 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 $0.5 million.

The following tables present by class, the activity in the ACL for loans under ASC 326 during the six months ended June 30, 2023 and 2022:

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, 2023 and 2022.


	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2023		2022		2023		2022
Beginning balance	$	3,480	$	4,540	$	3,243	$	4,804


Provision (credit) for off-balance sheet credit exposures	184		(467)		421		(731)
Ending balance	$	3,664	$	4,073	$	3,664	$	4,073


(dollars in thousands)	Commercial, Financial and Agricultural				Real Estate
Six Months Ended June 30, 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)		889		787		369		(164)		(537)		4,407		5,750
Subtotal	1		7,711		3,654		12,173		3,950		17,365		24,634		69,488
Charge-offs	—		1,141		—		—		—		—		6,559		7,700
Recoveries	—		375		—		60		15		—		1,611		2,061
Net charge-offs (recoveries)	—		766		—		(60)		(15)		—		4,948		5,639
Ending balance	$	1	$	6,945	$	3,654	$	12,233	$	3,965	$	17,365	$	19,686	$	63,849

(dollars in thousands)	Commercial, Financial and Agricultural				Real Estate
Six Months Ended June 30, 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	(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

In the six months ended June 30, 2023, our provision for credit losses was a debit of $6.2 million, which consisted of a debit to the provision for credit losses on loans of $5.8 million and a debit to the provision for credit losses on off-balance sheet credit exposures of $0.4 million.

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