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:

Residential

Other

CRE Owner

Non Owner

(Dollars in thousands)

Mortgage Sr.

Mortgage Jr.

HELOC

Construction

C&D

Consumer

Multifamily

Municipal

Occupied

Occupied CRE

C & I

Total

Three Months Ended September 30, 2020

Allowance for credit losses:

Balance at beginning of period June 30, 2020

$

67,342

$

1,081

$

26,623

$

9,439

$

33,912

$

20,170

$

7,792

$

4,075

$

90,206

$

129,958

$

44,010

$

434,608

FMV Adjustment to Initial PCD Allowance

29

—

(1,255)

3

(319)

(1,542)

Adjusted CECL balance

$

67,371

$

1,081

$

26,623

$

9,439

$

33,912

$

20,170

$

7,792

$

4,075

$

88,951

$

129,961

$

43,691

$

433,066

Charge-offs

(90)

—

(297)

—

(38)

(1,393)

—

(458)

(578)

(1,788)

(4,642)

Recoveries

289

100

365

79

221

602

8

—

457

234

1,693

4,048

Net charge offs

199

100

68

79

183

(791)

8

—

(1)

(344)

(95)

(594)

Provision (benefit) (1)

(5,351)

253

(5,584)

(4,151)

29,756

4,577

767

(2,641)

4,830

(9,181)

(5,588)

7,687

Balance at end of period September 30, 2020

$

62,219

$

1,434

$

21,107

$

5,367

$

63,851

$

23,956

$

8,567

$

1,434

$

93,780

$

120,436

$

38,008

$

440,159

Allowance for credit losses:

Quantitative allowance

Collectively evaluated

$

60,377

$

1,477

$

18,868

$

5,132

$

66,087

$

19,276

$

8,567

$

603

$

95,399

$

121,403

$

29,745

$

426,934

Individually evaluated

115

—

73

—

8

2

—

961

5

7

1,171

Total quantitative allowance

60,492

1,477

18,941

5,132

66,095

19,278

8,567

603

96,360

121,408

29,752

428,105

Qualitative allowance

1,727

(43)

2,166

235

(2,244)

4,678

—

831

(2,580)

(972)

8,256

12,054

Balance at end of period September 30, 2020

$

62,219

$

1,434

$

21,107

$

5,367

$

63,851

$

23,956

$

8,567

$

1,434

$

93,780

$

120,436

$

38,008

$

440,159

(1)

– Additional provision for credit losses of $22.1 million was recorded during the third quarter of 2020 for the allowance for credit losses for unfunded commitments that is not considered in the above table.

Residential

Other

CRE Owner

Non Owner

(Dollars in thousands)

Mortgage Sr.

Mortgage Jr.

HELOC

Construction

C&D

Consumer

Multifamily

Municipal

Occupied

Occupied CRE

C & I

Total

Nine Months Ended September 30, 2020

Allowance for credit losses:

Balance at beginning of period January 1, 2020

$

6,128

$

15

$

4,327

$

815

$

6,211

$

4,350

$

1,557

$

956

$

10,879

$

15,219

$

6,470

$

56,927

Impact of Adoption

5,455

11

3,849

779

5,588

3,490

1,391

914

9,505

13,898

6,150

51,030

Initial PCD Allowance

406

3

289

—

351

669

97

—

898

656

39

3,408

Adjusted CECL balance, January 1, 2020

$

11,989

$

29

$

8,465

$

1,594

$

12,150

$

8,509

$

3,045

$

1,870

$

21,282

$

29,773

$

12,659

$

111,365

Impact of merger on provision for non-PCD loans

16,712

226

4,227

4,893

7,673

3,836

1,212

919

25,393

35,067

9,284

109,442

Initial PCD Allowance

29,935

804

5,119

1,302

6,035

6,120

902

1,003

34,077

45,787

18,320

149,404

Charge-offs

(473)

(24)

(978)

(31)

(212)

(4,301)

—

(1,081)

(601)

(2,595)

(10,296)

Recoveries

876

246

988

83

1,070

1,498

63

—

885

287

2,291

8,287

Net charge offs

403

222

10

52

858

(2,803)

63

—

(196)

(314)

(304)

(2,009)

Provision (benefit) (1)

3,180

153

3,286

(2,474)

37,135

8,294

3,345

(2,358)

13,224

10,123

(1,951)

71,957

Balance at end of period September 30, 2020

$

62,219

$

1,434

$

21,107

$

5,367

$

63,851

$

23,956

$

8,567

$

1,434

$

93,780

$

120,436

$

38,008

$

440,159

(1)

– Additional provision for credit losses of $36.4 million was recorded during the first nine 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 September 30, 2019:
Balance at beginning of period	$	53,590	$	—	$	4,623	$	58,213
Loans charged-off		(1,969)		(810)		—		(2,779)
Recoveries of loans previously charged off (1)		834		50		—		884
Net charge-offs		(1,135)		(760)		—		(1,895)
Provision for loan losses charged to operations		2,482		760		786		4,028
Reduction due to loan removals		—		—		(91)		(91)
Balance at end of period	$	54,937	$	—	$	5,318	$	60,255


	Non-acquired		Acquired Non-Credit		Acquired Credit
(Dollars in thousands)	Loans		Impaired Loans		Impaired Loans		Total
Nine Months Ended September 30, 2019:
Balance at beginning of period	$	51,194	$	—	$	4,604	$	55,798
Loans charged-off		(4,541)		(2,719)		—		(7,260)
Recoveries of loans previously charged off (1)		2,461		372		—		2,833
Net charge-offs		(2,080)		(2,347)		—		(4,427)
Provision for losses charged to operations		5,823		2,347		1,050		9,220
Reduction due to loan removals		—		—		(336)		(336)
Balance at end of period	$	54,937	$	—	$	5,318	$	60,255

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

Allowance for Credit Losses

Schedule of changes in allowance for loan losses

The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans, for comparative periods, prior to the adoption of ASU 2016-13:


			Commercial
			Real Estate-
	Commercial		Construction and		Residential				Commercial
(Dollars in thousands)	Real Estate		Development		Real Estate		Consumer		and Industrial		Total
Three Months Ended September 30, 2019
Allowance for loan losses:
Balance, June 30, 2019	$	1,009	$	798	$	2,346	$	470	$	—	$	4,623
Provision (benefit) for loan losses		386		(38)		447		(9)		—		786
Reduction due to loan removals		—		—		(91)		—		—		(91)
Balance, September 30, 2019	$	1,395	$	760	$	2,702	$	461	$	—	$	5,318

Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	$	1,395	$	760	$	2,702	$	461	$	—	$	5,318

Loans:*
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment		149,134		26,930		175,044		36,812		8,112		396,032
Total acquired credit impaired loans	$	149,134	$	26,930	$	175,044	$	36,812	$	8,112	$	396,032


			Commercial
			Real Estate-
	Commercial		Construction and		Residential				Commercial
(Dollars in thousands)	Real Estate		Development		Real Estate		Consumer		and Industrial		Total
Nine Months Ended September 30, 2019
Allowance for loan losses:
Balance, December 31, 2018	$	801	$	717	$	2,246	$	761	$	79	$	4,604
Provision (benefit) for loan losses		599		43		742		(300)		(34)		1,050
Reduction due to loan removals		(5)		—		(286)		—		(45)		(336)
Balance, September 30, 2019	$	1,395	$	760	$	2,702	$	461	$	—	$	5,318

*— 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