Allowance for Credit Losses

12 Months Ended

Dec. 31, 2023

(In Thousands)

Allowance for Credit Losses on Loans

The following table provides a roll-forward of the allowance for credit losses by loan category and a breakdown of the ending balance of the allowance based on the Company’s credit loss methodology for the periods presented:


	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Year Ended December 31, 2023
Allowance for credit losses on loans:
Beginning balance	$	44,255	$	19,114	$	44,727	$	71,798	$	2,463	$	9,733	$	192,090
Impact of PCD loans acquired during the period	25		—		—		—		—		—		25
Charge-offs	(8,838)		(57)		(417)		(5,568)		(1,524)		(2,636)		(19,040)
Recoveries	3,090		48		389		712		18		2,453		6,710
Net charge-offs	(5,748)		(9)		(28)		(4,856)		(1,506)		(183)		(12,330)
Provision (recoveries) of credit losses on loans	5,448		(493)		2,584		10,078		1,558		(382)		18,793
Ending balance	$	43,980	$	18,612	$	47,283	$	77,020	$	2,515	$	9,168	$	198,578
Period-End Amount Allocated to:
Individually evaluated	$	9,093	$	—	$	83	$	1,132	$	—	$	270	$	10,578
Collectively evaluated	34,887		18,612		47,200		75,888		2,515		8,898		188,000
Ending balance	$	43,980	$	18,612	$	47,283	$	77,020	$	2,515	$	9,168	$	198,578
Loans:
Individually evaluated	$	18,026	$	—	$	11,600	$	15,705	$	—	$	270	$	45,601
Collectively evaluated	1,853,795		1,333,397		3,428,319		5,470,845		116,020		103,253		12,305,629
Ending balance	$	1,871,821	$	1,333,397	$	3,439,919	$	5,486,550	$	116,020	$	103,523	$	12,351,230

Nonaccruing loans with no allowance for credit losses	$	1,689	$	—	$	10,876	$	11,027	$	—	$	—	$	23,592


	Commercial		Real Estate - Construction		Real Estate - 1-4 Family Mortgage		Real Estate - Commercial Mortgage		Lease Financing		Installment Loans to Individuals		Total
Year Ended December 31, 2022
Allowance for credit losses on loans:
Beginning balance	$	33,922	$	16,419	$	32,356	$	68,940	$	1,486	$	11,048	$	164,171
Impact of PCD loans acquired during the period	11,460		—		—		—		—		—		11,460
Charge-offs	(5,120)		—		(757)		(5,134)		(7)		(3,167)		(14,185)
Recoveries	2,471		—		821		418		146		3,000		6,856
Net charge-offs	(2,649)		—		64		(4,716)		139		(167)		(7,329)
Provision for credit losses on loans	1,522		2,695		12,307		7,574		838		(1,148)		23,788
Ending balance	$	44,255	$	19,114	$	44,727	$	71,798	$	2,463	$	9,733	$	192,090
Period-End Amount Allocated to:
Individually evaluated	$	4,397	$	—	$	46	$	1,729	$	—	$	270	$	6,442
Collectively evaluated	39,858		19,114		44,681		70,069		2,463		9,463		185,648
Ending balance	$	44,255	$	19,114	$	44,727	$	71,798	$	2,463	$	9,733	$	192,090
Loans:
Individually evaluated	$	8,536	$	489	$	9,202	$	10,953	$	—	$	270	$	29,450
Collectively evaluated	1,665,347		1,329,848		3,207,061		5,107,110		115,013		124,475		11,548,854
Ending balance	$	1,673,883	$	1,330,337	$	3,216,263	$	5,118,063	$	115,013	$	124,745	$	11,578,304

Nonaccruing loans with no allowance for credit losses	$	464	$	—	$	7,278	$	3,157	$	—	$	—	$	10,899

The Company’s allowance for credit loss model considers economic projections, primarily the national unemployment rate and GDP, over a reasonable and supportable period of two years. While credit metrics remained relatively stable, loan growth caused the Company’s allowance model to indicate that an increase to the allowance for credit losses was appropriate during 2023.

Allowance for Credit Losses on Unfunded Loan Commitments

The following table provides a roll-forward of the allowance for credit losses on unfunded loan commitments included in other liabilities in the Consolidated Balance Sheets for the periods presented.


	Year Ended
	2023		2022
Allowance for credit losses on unfunded loan commitments:
Beginning balance	$	20,118	$	20,035
(Recovery of) provision for credit losses on unfunded loan commitments	(3,200)		83
Ending balance	$	16,918	$	20,118