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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
Activity in the allowance for credit losses is summarized as follows:
 Three Months Ended June 30, 2021
(In thousands)Beginning
Balance		Provision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$4,428 $(469)$— $96 $(2)$4,053 
Commercial real estate - owner-occupied9,792 (1,116)— — — 8,676 
Commercial real estate - non owner-occupied36,229 (1,423)— 1 — 34,807 
Residential real estate14,353 (2,407)(21)621 (3)12,543 
Commercial and financial18,916 399 (1,564)265 — 18,016 
Consumer2,925 161 (199)146 (1)3,032 
Paycheck Protection Program— — — — — — 
Totals$86,643 $(4,855)$(1,784)$1,129 $(6)$81,127 
 Three Months Ended June 30, 2020
(In thousands)Beginning
Balance		Provision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$4,646 $2,478 $— $37 $— $7,161 
Commercial real estate - owner occupied5,327 229 — 18 (12)5,562 
Commercial real estate - non-owner occupied35,643 3,345 — 4 — 38,992 
Residential real estate19,899 574 (113)101 (8)20,453 
Commercial and financial15,470 1,319 (1,768)493 — 15,514 
Consumer4,426 (334)(614)91 (1)3,568 
Paycheck Protection Program— — — — — — 
Totals$85,411 $7,611 $(2,495)$744 $(21)$91,250 
Six Months Ended June 30, 2021
(In thousands)Beginning
Balance		Provision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$4,920 $(979)$— $114 $(2)$4,053 
Commercial real estate - owner-occupied9,868 (1,192)— — — 8,676 
Commercial real estate - non owner-occupied38,266 (3,461)— 2 — 34,807 
Residential real estate17,500 (5,779)(21)850 (7)12,543 
Commercial and financial18,690 1,174 (2,320)472 — 18,016 
Consumer3,489 (333)(384)262 (2)3,032 
Paycheck Protection Program— — — — — — 
Totals$92,733 $(10,570)$(2,725)$1,700 $(11)$81,127 
Six Months Ended June 30, 2020
(In thousands)Beginning BalanceImpact of Adoption of ASC 326Initial Allowance on PCD Loans Acquired During the PeriodProvision for Credit LossesCharge- OffsRecoveriesTDR Allowance AdjustmentsEnding Balance
Construction and land development$1,842 $1,479 $48 $3,727 $— $66 $(1)$7,161 
Commercial real estate - owner occupied5,361 80 207 (34)(45)18 (25)5,562 
Commercial real estate - non-owner occupied7,863 9,341 140 21,628 (12)32 — 38,992 
Residential real estate7,667 5,787 97 6,834 (131)218 (19)20,453 
Commercial and financial9,716 3,677 11 4,063 (2,866)913 — 15,514 
Consumer2,705 862 13 906 (1,087)170 (1)3,568 
Paycheck Protection Program— — — — — — — — 
Totals$35,154 $21,226 $516 $37,124 $(4,141)$1,417 $(46)$91,250 
Management establishes the allowance using relevant available information from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts to project losses over a three-year forecast period. Forecast data is sourced primarily from Moody’s Analytics, a firm widely recognized for its research, analysis, and economic forecasts. For portfolio segments with a weighted average life longer than three years, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans within each segment.

Historical credit losses provide the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, loan to value ratios, borrower credit characteristics, loan seasoning or term as well as for changes in current and forecasted environmental conditions, such as changes in unemployment rates, property values, occupancy rates, and other macroeconomic metrics.
As of June 30, 2021, the Company utilized Moody’s most recent “U.S. Macroeconomic Outlook Baseline” scenario and considered the uncertainty associated with the assumptions in the Baseline scenario, including the potential for increasing COVID-19 infections, including from variants, and the resulting potential erosion in consumer confidence, and the risk that government stimulus programs are less effective than expected. Outcomes in any or all of these factors could differ from the Baseline scenario, and the Company incorporated qualitative considerations reflecting the risk of uncertain economic conditions, and for additional dimensions of risk not captured in the quantitative model.
In the Construction and Land Development segment, the decrease in reserves during the quarter reflects improved economic variables relating to residential real estate. In this segment, the primary source of repayment is typically from proceeds of the sale, refinancing, or permanent financing of the underlying property; therefore, industry and collateral type and estimated collateral values are among the relevant factors in assessing expected losses.
In the Commercial Real Estate - Owner-Occupied segment, the decrease in reserves is primarily the result of improved economic variables relating to unemployment. Risk characteristics include but are not limited to, collateral type, loan seasoning, and lien position.
In the Commercial Real Estate - Non Owner-Occupied segment, the decrease in reserves reflects lower loan balances and improved economic forecast variables including lower unemployment. Repayment is often dependent upon rental income from the successful operation of the underlying property. Loan performance may be adversely affected by general economic conditions or conditions specific to the real estate market, including property types. Collateral type, loan seasoning, and lien position are among the risk characteristics analyzed for this segment.
The Residential Real Estate segment includes first mortgages secured by residential property, and home equity lines of credit. The decrease in reserves reflects lower loan balances and improved economic forecast variables including lower unemployment. Risk characteristics considered for this segment include, but are not limited to, collateral type, lien position, loan to value ratios, and loan seasoning.
In the Commercial and Financial segment, borrowers are primarily small to medium sized professional firms and other businesses, and loans are generally supported by projected cash flows of the business, collateralized by business assets, and/or guaranteed by the business owners. The decrease in reserves is primarily attributed to improvement in economic forecast
variables including unemployment, partially offset by higher loan balances. Industry, collateral type, estimated collateral values and loan seasoning are among the relevant factors in assessing expected losses.
Consumer loans include installment and revolving lines, loans for automobiles, boats, and other personal or family purposes. Risk characteristics considered for this segment include, but are not limited to, collateral type, loan to value ratios, loan seasoning and FICO score. Nominal changes in the reserve during the quarter reflect changes in underlying economic variables.
Balances outstanding under the Paycheck Protection Program are guaranteed by the U.S. government and have not been assigned a reserve.
The allowance for credit losses is composed of specific allowances for loans individually evaluated and general allowances for loans grouped into loan pools based on similar characteristics, which are collectively evaluated. The Company’s loan portfolio and related allowance at June 30, 2021 and December 31, 2020 is shown in the following tables:
 June 30, 2021
 Individually Evaluated Collectively EvaluatedTotal
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$129 $3 $234,218 $4,050 $234,347 $4,053 
Commercial real estate - owner occupied7,209 503 1,120,431 8,173 1,127,640 8,676 
Commercial real estate - non owner-occupied7,217 1,708 1,405,222 33,099 1,412,439 34,807 
Residential real estate18,651 504 1,207,885 12,039 1,226,536 12,543 
Commercial and financial12,632 2,142 887,574 15,874 900,206 18,016 
Consumer352 122 171,417 2,910 171,769 3,032 
Paycheck Protection Program— — 364,112 — 364,112 — 
Totals$46,190 $4,982 $5,390,859 $76,145 $5,437,049 $81,127 

 December 31, 2020
 Individually Evaluated Collectively Evaluated
 Total
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$276 $13 $244,832 $4,907 $245,108 $4,920 
Commercial real estate - owner occupied10,243 402 1,131,067 9,466 1,141,310 9,868 
Commercial real estate - non owner-occupied8,083 1,640 1,387,771 36,626 1,395,854 38,266 
Residential real estate16,506 2,064 1,326,122 15,436 1,342,628 17,500 
Commercial and financial13,281 3,498 841,472 15,192 854,753 18,690 
Consumer807 91 187,928 3,398 188,735 3,489 
Paycheck Protection Program— — 566,961 — 566,961 — 
Totals$49,196 $7,708 $5,686,153 $85,025 $5,735,349 $92,733