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Allowance for Credit Losses
 9 Months Ended
Sep. 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 September 30, 2021
(In thousands)Beginning
Balance		Initial Allowance on PCD Loans Acquired During the PeriodProvision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$4,053 $— $(1,459)$— $10 $(1)$2,603 
Commercial real estate - owner-occupied8,676 — (24)— — — 8,652 
Commercial real estate - non owner-occupied34,807 1,327 5,278 (1,327)— — 40,085 
Residential real estate12,543 — 1,456 (27)158 (3)14,127 
Commercial and financial18,016 1,719 (2)(535)326 — 19,524 
Consumer3,032 — (158)(163)126 (5)2,832 
Paycheck Protection Program— — — — — — — 
Totals$81,127 $3,046 $5,091 $(2,052)$620 $(9)$87,823 
 Three Months Ended September 30, 2020
(In thousands)Beginning
Balance
Initial Allowance on PCD Loans Acquired During the Period
Provision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$7,161 $39 $475 $— $26 $— $7,701 
Commercial real estate - owner occupied5,562 954 689 — 26 (12)7,219 
Commercial real estate - non-owner occupied38,992 2,096 (7,050)(25)5 — 34,018 
Residential real estate20,453 27 (3,196)(19)65 (5)17,325 
Commercial and financial15,514 2,632 8,081 (1,776)203 — 24,654 
Consumer3,568 15 (244)(355)114 (2)3,096 
Paycheck Protection Program— — — — — — — 
Totals$91,250 $5,763 $(1,245)$(2,175)$439 $(19)$94,013 
Nine Months Ended September 30, 2021
(In thousands)Beginning
Balance		Initial Allowance on PCD Loans Acquired During the PeriodProvision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$4,920 $— $(2,438)$— $124 $(3)$2,603 
Commercial real estate - owner-occupied9,868 — (1,216)— — — 8,652 
Commercial real estate - non owner-occupied38,266 1,327 1,817 (1,327)2 — 40,085 
Residential real estate17,500 — (4,323)(48)1,008 (10)14,127 
Commercial and financial18,690 1,719 1,172 (2,855)798 — 19,524 
Consumer3,489 — (491)(547)388 (7)2,832 
Paycheck Protection Program— — — — — — 
Totals$92,733 $3,046 $(5,479)$(4,777)$2,320 $(20)$87,823 
Nine Months Ended September 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 $87 $4,202 $— $92 $(1)$7,701 
Commercial real estate - owner occupied5,361 80 1,161 655 (45)44 (37)7,219 
Commercial real estate - non-owner occupied7,863 9,341 2,236 14,578 (37)37 — 34,018 
Residential real estate7,667 5,787 124 3,638 (150)283 (24)17,325 
Commercial and financial9,716 3,677 2,643 12,144 (4,642)1,116 — 24,654 
Consumer2,705 862 28 662 (1,442)284 (3)3,096 
Paycheck Protection Program— — — — — — — — 
Totals$35,154 $21,226 $6,279 $35,879 $(6,316)$1,856 $(65)$94,013 
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 September 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 lower loan balances and 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, increases in the allowance resulting from loan growth were offset by the impact 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 increase in reserves reflects higher loan balances, partially offset by 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 increase in reserves reflects the impact of higher loan balances resulting from organic growth and loans acquired, partially offset by 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 increase in reserves is attributed to 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. The decline in the reserve during the quarter reflects lower loan balances and improved economic forecast 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 September 30, 2021 and December 31, 2020 is shown in the following tables:
 September 30, 2021
 Individually Evaluated Collectively EvaluatedTotal
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$80 $3 $227,379 $2,600 $227,459 $2,603 
Commercial real estate - owner occupied5,689 420 1,195,647 8,232 1,201,336 8,652 
Commercial real estate - non owner-occupied5,190 95 1,668,397 39,990 1,673,587 40,085 
Residential real estate18,654 513 1,448,675 13,614 1,467,329 14,127 
Commercial and financial15,478 3,350 967,074 16,174 982,552 19,524 
Consumer746 565 162,273 2,267 163,019 2,832 
Paycheck Protection Program— — 190,602 — 190,602 — 
Totals$45,837 $4,946 $5,860,047 $82,877 $5,905,884 $87,823 

 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