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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2022
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, 2022
(In thousands)Beginning
Balance		Provision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development$2,268 $230 $— $54 $— $2,552 
Commercial real estate - owner-occupied9,294 (1,918)— — — 7,376 
Commercial real estate - non owner-occupied43,922 2,528 — 9 — 46,459 
Residential real estate14,075 648 — 112 (14)14,821 
Commercial and financial17,727 (500)(253)171 (1)17,144 
Consumer2,552 (166)(199)230 — 2,417 
Paycheck Protection Program— — — — — — 
Totals$89,838 $822 $(452)$576 $(15)$90,769 

 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 
Six Months Ended June 30, 2022
(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$2,751 $— $(263)$— $64 $— $2,552 
Commercial real estate - owner-occupied8,579 — (1,203)— — — 7,376 
Commercial real estate - non owner-occupied36,617 31 9,802 — 9 — 46,459 
Residential real estate12,811 17 1,708 (1)303 (17)14,821 
Commercial and financial19,744 3 (2,128)(822)348 (1)17,144 
Consumer2,813 — (538)(294)438 (2)2,417 
Paycheck Protection Program— — — — — — 
Totals$83,315 $51 $7,378 $(1,117)$1,162 $(20)$90,769 
Six Months Ended June 30, 2021
(In thousands)Beginning BalanceProvision for Credit LossesCharge- OffsRecoveriesTDR Allowance AdjustmentsEnding 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 

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 (“Moody’s”), 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, 2022, 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 actions taken by the Federal Reserve with regard to monetary policy and interest rates and the potential impact of those actions, the ongoing Russia-Ukraine conflict and the magnitude of the resulting market disruption, and the potential impact of persistent high inflation on economic growth. 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.
The following section discusses changes in the level of reserves for the three months ended June 30, 2022.
In the Construction and Land Development segment, the increase in reserves reflects higher loan balances, partially offset by continuing low historical loss rates for this segment. 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 the allowance reflects lower loan balances, changes in the proportion of loan types in this category, and lower specific reserves. Risk characteristics include but are not limited to, collateral type, loan seasoning, and note structure.
In the Commercial Real Estate - Non Owner-Occupied segment, the increase in reserves reflects higher loan balances and the impact of considerations of the increasing risk of economic recession on loans in this category. 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 note structure 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. Risk characteristics considered for this segment include, but are not limited to, collateral type, note structure, 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 attributed to lower loan balances and lower specific reserves.
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 reflects continuing low historical loss rates and an increasing proportion of seasoned loans in this segment.
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, 2022 and December 31, 2021 is shown in the following tables:
 June 30, 2022
 Individually Evaluated Collectively EvaluatedTotal
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$16 $— $350,009 $2,552 $350,025 $2,552 
Commercial real estate - owner occupied2,714 48 1,251,629 7,328 1,254,343 7,376 
Commercial real estate - non owner-occupied7,331 741 1,965,209 45,718 1,972,540 46,459 
Residential real estate12,971 297 1,634,494 14,524 1,647,465 14,821 
Commercial and financial8,969 2,185 1,115,802 14,959 1,124,771 17,144 
Consumer548 474 174,653 1,943 175,201 2,417 
Paycheck Protection Program— — 17,203 — 17,203 — 
Totals$32,549 $3,745 $6,508,999 $87,024 $6,541,548 $90,769 

 December 31, 2021
 Individually Evaluated Collectively Evaluated
 Total
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$271 $92 $230,553 $2,659 $230,824 $2,751 
Commercial real estate - owner occupied5,131 419 1,192,643 8,160 1,197,774 8,579 
Commercial real estate - non owner-occupied5,905 27 1,730,534 36,590 1,736,439 36,617 
Residential real estate16,345 646 1,409,009 12,165 1,425,354 12,811 
Commercial and financial11,470 2,885 1,057,886 16,859 1,069,356 19,744 
Consumer741 685 173,434 2,128 174,175 2,813 
Paycheck Protection Program— — 91,107 — 91,107 — 
Totals$39,863 $4,754 $5,885,166 $78,561 $5,925,029 $83,315