Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

3 Months Ended

Mar. 31, 2022

Credit Loss [Abstract]

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

Management analyzes the Company's exposure to credit losses for both on-balance sheet and off-balance sheet activity using a consistent methodology for the quantitative framework as well as the qualitative framework. For purposes of estimating the allowance for credit losses for off-balance sheet credit exposures, the exposure at default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors, resulting in a proportionate amount of expected credit losses.

For the three months ended March 31, 2022, the Company recorded a $2.4 million benefit to the provision for credit losses for off-balance sheet credit exposures compared to an $875,000 benefit to the provision for credit losses for off-balance sheet credit exposures for the same period in 2021. The increase in the period-over period provision benefit was primarily due to an increase in line of credit utilization.

The allowance for credit losses for off-balance sheet credit exposures was $4.1 million and $6.5 million at March 31, 2022 and December 31, 2021, respectively, and are included in other liabilities on the Consolidated Statements of Financial Condition.