ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2022

Changes in the allowance for credit losses for loans for the years ended December 31, 2022, 2021, and 2020 were as follows, in thousands:


	2022		2021		2020
Balance at beginning of year	$	110,088	$	131,606	$	70,395
Impact of the adoption of ASU 2016-13 on January 1, 2020	—		—		12,071
Adjusted beginning balance	110,088		131,606		82,466
Allowance for purchased credit deteriorated loans	—		—		12,313
Provision (benefit) for credit losses	10,636		(17,706)		65,745
Recoveries on loans previously charged-off	7,055		4,931		3,804
Charge-offs on loans	(18,296)		(8,743)		(32,722)
Balance at end of year	$	109,483	$	110,088	$	131,606

Changes in the allowance for credit losses for loans by loan category for the years ended December 31, 2022, and December 31, 2021, were as follows, in thousands:


	Balance at 12/31/2021		Charge-offs		Recoveries		Provision (Benefit)		Balance at 12/31/2022
Commercial and industrial	$	27,738	$	(6,964)	$	4,951	$	3,346	$	29,071

Owner occupied commercial real estate	19,214		(129)		112		(5,249)		13,948
Non-owner occupied commercial real estate	17,908		(193)		60		(1,236)		16,539
Real estate construction	22,538		(35)		13		7,482		29,998
Agricultural and agricultural real estate	5,213		(3,217)		653		(15)		2,634
Residential real estate	8,427		(307)		—		(409)		7,711
Consumer	9,050		(7,451)		1,266		6,717		9,582
Total	$	110,088	$	(18,296)	$	7,055	$	10,636	$	109,483


	Balance at 12/31/2020		Charge-offs		Recoveries		Provision (Benefit)		Balance at 12/31/2021
Commercial and industrial	$	38,818	$	(2,150)	$	3,058	$	(11,988)	$	27,738

Owner occupied commercial real estate	20,001		(296)		152		(643)		19,214
Non-owner occupied commercial real estate	20,873		(1,637)		33		(1,361)		17,908
Real estate construction	20,080		(10)		10		2,458		22,538
Agricultural and agricultural real estate	7,129		(1,902)		531		(545)		5,213
Residential real estate	11,935		(181)		13		(3,340)		8,427
Consumer	12,770		(2,567)		1,134		(2,287)		9,050
Total	$	131,606	$	(8,743)	$	4,931	$	(17,706)	$	110,088

Changes in the allowance for credit losses on unfunded commitments for the years ended December 31, 2022 and December 31, 2021, were as follows:


	For the Years Ended December 31,
	2022		2021
Beginning balance	$	15,462	$	15,280


Provision	4,734		182
Ending balance	$	20,196	$	15,462

Management allocates the allowance for credit losses by pools of risk within each loan portfolio. The total allowance for credit losses is available to absorb losses from any segment of the loan portfolio.