Schedule of changes in allowance for loan losses

The following table presents a disaggregated analysis of activity in the allowance for credit losses as follows:

Consumer

Ready

CRE-OO

CRE and

BEX and

(Dollars in thousands)

Mortgage

HELOC

Non Mobile Home

Mobile Home

Reserves

Overdrafts

Land

and C&I

OIPP

Micro

Other

Total

Three Months Ended June 30, 2020

Allowance for credit losses:

Balance at beginning of period March 31, 2020

$

16,033

$

12,050

$

2,732

$

4,458

$

513

$

855

$

7,254

$

40,345

$

57,437

$

2,665

$

443

$

144,785

Impact of merger on provision for non-PCD loans

16,938

4,228

3,836

—

12,565

35,597

36,278

—

109,442

Initial PCD Allowance

30,710

5,119

1,130

4,990

7,338

54,973

46,686

—

150,946

Adjusted CECL balance

$

63,681

$

21,397

$

7,698

$

9,448

$

513

$

855

$

27,157

$

130,915

$

140,401

$

2,665

$

443

$

405,173

Charge-offs

(103)

(68)

(249)

(26)

(106)

(742)

(100)

(698)

(23)

(316)

—

(2,431)

Recoveries

187

203

78

64

—

288

571

710

213

16

—

2,330

Net charge offs

84

135

(171)

38

(106)

(454)

471

12

190

(300)

—

(101)

Provision (benefit) (1)

1,999

5,028

2,018

(1,110)

95

665

2,527

63

15,942

2,071

238

29,536

Balance at end of period June 30, 2020

$

65,764

$

26,560

$

9,545

$

8,376

$

502

$

1,066

$

30,155

$

130,990

$

156,533

$

4,436

$

681

$

434,608

Allowance for credit losses:

Quantitative allowance

Collectively evaluated

$

59,681

$

23,527

$

6,213

$

8,202

$

460

$

955

$

32,961

$

109,525

$

111,087

$

3,576

$

—

$

356,187

Individually evaluated

160

299

—

63

6,240

3,916

226

—

10,904

Total quantitative allowance

59,841

23,826

6,213

8,202

460

955

33,024

115,765

115,003

3,802

—

367,091

Qualitative allowance

5,923

2,734

3,332

174

42

111

(2,869)

15,225

41,530

634

681

67,517

Balance at end of period June 30, 2020

$

65,764

$

26,560

$

9,545

$

8,376

$

502

$

1,066

$

30,155

$

130,990

$

156,533

$

4,436

$

681

$

434,608

(1)

– Additional provision for credit losses of $12.5 million was recorded during the second quarter of 2020 for the allowance for credit losses for unfunded commitments that is not considered in the above table. Of this amount, $9.6 million was from the initial impact from the merger with CSFL. See Note 14.

Consumer

Ready

CRE-OO

CRE and

BEX and

(Dollars in thousands)

Mortgage

HELOC

Non Mobile Home

Mobile Home

Reserves

Overdrafts

Land

and C&I

OIPP

Micro

Other

Total

Six Months Ended June 30, 2020

Allowance for credit losses:

Balance at beginning of period January 1, 2020

$

5,076

$

4,310

$

1,142

$

2,176

$

231

$

561

$

3,055

$

18,189

$

20,800

$

1,148

$

239

$

56,927

Impact of Adoption

4,757

3,836

1,079

1,426

220

537

2,574

16,487

18,878

1,007

229

51,030

Initial PCD Allowance

98

286

14

655

348

907

1,010

90

—

3,408

Adjusted CECL balance, January 1, 2020

$

9,931

$

8,432

$

2,235

$

4,257

$

451

$

1,098

$

5,977

$

35,583

$

40,688

$

2,245

$

468

$

111,365

Impact of merger on provision for non-PCD loans

16,938

4,228

3,836

—

12,565

35,597

36,278

—

109,442

Initial PCD Allowance

30,710

5,119

1,130

4,990

—

7,338

54,973

46,686

—

150,946

Charge-offs

(407)

(683)

(479)

(406)

(205)

(1,818)

(205)

(1,059)

(23)

(369)

—

(5,654)

Recoveries

406

608

113

117

5

662

743

955

414

216

—

4,239

Net charge offs

(1)

(75)

(366)

(289)

(200)

(1,156)

538

(104)

391

(153)

—

(1,415)

Provision (benefit) (1)

8,186

8,856

2,710

(582)

251

1,124

3,737

4,941

32,490

2,344

213

64,270

Balance at end of period June 30, 2020

$

65,764

$

26,560

$

9,545

$

8,376

$

502

$

1,066

$

30,155

$

130,990

$

156,533

$

4,436

$

681

$

434,608

(1)

– Additional provision for credit losses of $14.3 million was recorded during the first six months 2020 for the allowance for credit losses for unfunded commitments that is not considered in the above table. Of this amount, $9.6 million was from the initial impact from the merger with CSFL. See Note 14.

An aggregated analysis of the changes in allowance for loan losses, for comparative periods, prior to the adoption of ASU 2016-13 is as follows:


	Non-acquired		Acquired Non-Credit		Acquired Credit
(Dollars in thousands)	Loans		Impaired Loans		Impaired Loans		Total
Three Months Ended June 30, 2019:
Balance at beginning of period	$	52,008	$	—	$	4,514	$	56,522
Loans charged-off		(1,327)		(1,535)		—		(2,862)
Recoveries of loans previously charged off (1)		875		116		—		991
Net charge-offs		(452)		(1,419)		—		(1,871)
Provision for loan losses charged to operations		2,034		1,419		251		3,704
Reduction due to loan removals		—		—		(142)		(142)
Balance at end of period	$	53,590	$	—	$	4,623	$	58,213


	Non-acquired		Acquired Non-Credit		Acquired Credit
(Dollars in thousands)	Loans		Impaired Loans		Impaired Loans		Total
Six Months Ended June 30, 2019:
Balance at beginning of period	$	51,194	$	—	$	4,604	$	55,798
Loans charged-off		(2,572)		(1,909)		—		(4,481)
Recoveries of loans previously charged off (1)		1,627		322		—		1,949
Net charge-offs		(945)		(1,587)		—		(2,532)
Provision for losses charged to operations		3,341		1,587		264		5,192
Reduction due to loan removals		—		—		(245)		(245)
Balance at end of period	$	53,590	$	—	$	4,623	$	58,213

(1)	Recoveries related to acquired credit impaired loans are recorded through other noninterest income on the consolidated statement of income and do not run through the ALLL.

Allowance for Credit Losses

Schedule of changes in allowance for loan losses


			Commercial
			Real Estate-
	Commercial		Construction and		Residential				Commercial
(Dollars in thousands)	Real Estate		Development		Real Estate		Consumer		and Industrial		Total

Three Months Ended June 30, 2019
Allowance for loan losses:
Balance , March 31, 2019	$	847	$	717	$	2,164	$	707	$	79	$	4,514
Provision (benefit) for loan losses		162		81		279		(237)		(34)		251
Reduction due to loan removals		—		—		(97)		—		(45)		(142)
Balance, June 30, 2019	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623
Loans:*
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		164,540		27,014		184,208		38,624		10,198		424,584
Total acquired credit impaired loans	$	164,540	$	27,014	$	184,208	$	38,624	$	10,198	$	424,584


			Commercial
			Real Estate-
	Commercial		Construction and		Residential				Commercial
(Dollars in thousands)	Real Estate		Development		Real Estate		Consumer		and Industrial		Total
Six Months Ended June 30, 2019
Allowance for loan losses:
Balance, December 31, 2018	$	801	$	717	$	2,246	$	761	$	79	$	4,604
Provision (benefit) for loan losses		213		81		295		(291)		(34)		264
Reduction due to loan removals		(5)		—		(195)		—		(45)		(245)
Balance, June 30, 2019	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623

*— The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans.

Allowance for Credit Losses