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Allowance for Credit Losses
 6 Months Ended
Jun. 30, 2023
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, 2023
(In thousands)Beginning
Balance
Initial Allowance on PCD Loans Acquired During the Period 1
Provision
for Credit
Losses		Charge-
Offs		RecoveriesEnding
Balance
Construction and land development$6,540 $— $414 $— $6 $6,960 
Commercial real estate - owner-occupied6,292 — 125 — 1 6,418 
Commercial real estate - non-owner occupied53,575 — 423 — 105 54,103 
Residential real estate39,894 — (3,248)(109)173 36,710 
Commercial and financial31,593 5,544 2,202 (727)1,660 40,272 
Consumer17,746 — (680)(1,904)90 15,252 
Totals$155,640 $5,544 $(764)$(2,740)$2,035 $159,715 
1 Amount represents a measurement period adjustment of a PCD loan acquired through the acquisition of Professional, see Note 11 - Business Combinations
 Three Months Ended June 30, 2022
(In thousands)Beginning
Balance		Provision
for Credit
Losses		Charge-
Offs		RecoveriesTDR
Allowance
Adjustments		Ending
Balance
Construction and land development2,268 230 — 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 
Totals$89,838 $822 $(452)$576 $(15)$90,769 
Six Months Ended June 30, 2023
(In thousands)Beginning
Balance		Initial Allowance on PCD Loans Acquired During the PeriodProvision
for Credit
Losses		Charge-
Offs		RecoveriesEnding
Balance
Construction and land development$6,464 $5 $483 $— $8 $6,960 
Commercial real estate - owner occupied6,051 139 226 — 2 6,418 
Commercial real estate - non-owner occupied43,258 647 10,138 (109)169 54,103 
Residential real estate29,605 400 6,650 (268)323 36,710 
Commercial and financial15,648 17,527 8,616 (3,369)1,850 40,272 
Consumer12,869 161 4,721 (2,599)100 15,252 
Totals$113,895 $18,879 $30,834 $(6,345)$2,452 $159,715 
Six Months Ended June 30, 2022
(In thousands)Beginning BalanceAllowance on PCD Loans Acquired During the PeriodProvision for Credit LossesCharge- OffsRecoveriesTDR Allowance AdjustmentsEnding 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 
Totals$83,315 $51 $7,378 $(1,117)$1,162 $(20)$90,769 

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. Forecast data is sourced from Moody’s Analytics (“Moody’s”), a firm widely recognized for its research, analysis, and economic forecasts. The forecasts of future economic conditions are over a period that has been deemed reasonable and supportable, and in segments where it can no longer develop reasonable and supportable forecasts, the Company reverts to longer-term historical loss experience to estimate losses over the remaining life of the loans.
As of June 30, 2023 and December 31, 2022, the Company utilized a blend of Moody’s most recent “U.S. Macroeconomic Outlook Baseline” and “Alternative Scenario 3 Downside 90th Percentile” scenarios and considered the uncertainty associated with the assumptions in both scenarios, including continued 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, the potential impact of persistent high inflation on economic growth and expectations around a recession occurring over the next 12 to 24 months. Outcomes in any or all of these factors could differ from the scenarios identified above, 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 the allowance for credit losses for the three months ended June 30, 2023.
In the Construction and Land Development segment, the increase in the allowance is attributed to higher loan balances. 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 increase in the allowance reflects higher loan balances. Risk characteristics include but are not limited to, collateral type, note structure and loan seasoning.
In the Commercial Real Estate - Non Owner-Occupied segment, the increase in the allowance is attributed to changes in economic forecast variables for commercial real estate, partially offset by lower loan balances. 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, note structure and loan seasoning 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 the allowance is due to continued resilience in economic indicators relevant to the Florida housing market. partially offset by higher loan balances. Risk characteristics considered for this segment include, but are not limited to, borrower FICO score, 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 primarily attributed to higher reserves on individually evaluated loans. 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 decrease in the allowance is primarily due to lower loan balances.
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, 2023 and December 31, 2022 are shown in the following tables:
 June 30, 2023
 Individually Evaluated Collectively EvaluatedTotal
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$430 $107 $793,941 $6,853 $794,371 $6,960 
Commercial real estate - owner occupied6,261 15 1,663,108 6,403 1,669,369 6,418 
Commercial real estate - non-owner occupied8,670 318 3,361,541 53,785 3,370,211 54,103 
Residential real estate11,775 22 2,384,577 36,688 2,396,352 36,710 
Commercial and financial40,162 20,009 1,575,372 20,263 1,615,534 40,272 
Consumer2,271 2,081 269,811 13,171 272,082 15,252 
Totals$69,569 $22,552 $10,048,350 $137,163 $10,117,919 $159,715 

 December 31, 2022
 Individually Evaluated Collectively Evaluated
 Total
(In thousands)Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance		Recorded
Investment		Associated
Allowance
Construction and land development$59 $— $587,273 $6,464 $587,332 $6,464 
Commercial real estate - owner occupied3,346 41 1,474,956 6,010 1,478,302 6,051 
Commercial real estate - non-owner occupied4,183 230 2,585,591 43,028 2,589,774 43,258 
Residential real estate11,333 275 1,838,170 29,330 1,849,503 29,605 
Commercial and financial12,167 2,639 1,341,059 13,009 1,353,226 15,648 
Consumer426 362 286,161 12,507 286,587 12,869 
Totals$31,514 $3,547 $8,113,210 $110,348 $8,144,724 $113,895