Allowance for Credit Losses on Off-Balance Sheet Credit Exposures

3 Months Ended

Mar. 31, 2024

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 that may default includes an estimated drawdown of unused credit based on historical credit utilization factors and current loss factors.

For the three months ended March 31, 2024, the Company recorded a $506,000 provision benefit for credit losses on off-balance sheet credit exposures. For the three months ended March 31, 2023, the Company recorded a $739,000 provision charge for credit losses for off-balance sheet credit exposures. The $1.2 million decrease in the provision for the three months ended March 31, 2024, compared to the same period in 2023, was primarily due to a decrease in loans approved and awaiting closing.

The allowance for credit losses for off-balance sheet credit exposures was $2.9 million as of March 31, 2024 and $3.4 million as of December 31, 2023, and is included in other liabilities on the Consolidated Statements of Financial Condition.