Allowance for Credit Losses | Note 5—Allowance for Credit Losses The Company adopted CECL on December 31, 2022, and has applied it retroactively to the period beginning January 1, 2022 using the modified retrospective method of accounting. Loans and leases considered for inclusion in the allowance for credit losses include acquired non-credit-deteriorated loans and leases, purchased credit deteriorated loans, and originated loans and leases. The following tables summarize the balance and activity within the allowance for credit losses, the components of the allowance for credit losses in terms of loans and leases individually and collectively evaluated for expected credit losses, and corresponding loan and lease balances by type for the years ended December 31, 2022, 2021 and 2020 . Results for the full year and period ended December 31, 2022, are presented under the CECL methodology while prior period amounts are reported in accordance with previously applicable accounting standards. Refer to Note 1—Summary of Significant Accounting Policies, for more detail on the Company’s policy on allowance for credit losses. Note 5—Allowance for Credit Losses (continued) 2022 Commercial Residential Construction, Commercial Paycheck Protection Program Installment Lease Total Allowance for credit losses Beginning balance pre-CECL adoption $ 16,918 $ 1,628 $ 522 $ 33,129 $ — $ 9 $ 2,806 $ 55,012 Impact of CECL adoption 6,367 1,047 1,191 1,253 — 9 2,301 12,168 Provision/(recapture) 5,252 907 1,476 12,002 — ( 9 ) 3,046 22,674 Charge-offs ( 3,837 ) ( 1,208 ) ( 94 ) ( 5,377 ) — ( 7 ) ( 1,472 ) ( 11,995 ) Recoveries 1,361 766 39 882 — 22 995 4,065 Ending balance $ 26,061 $ 3,140 $ 3,134 $ 41,889 $ — $ 24 $ 7,676 $ 81,924 Ending balance: Individually evaluated for impairment $ 6,101 $ — $ 265 $ 8,972 $ — $ — $ — $ 15,338 Collectively evaluated for impairment 19,960 3,140 2,869 32,917 — 24 7,676 66,586 Total allowance for credit losses - loans and leases $ 26,061 $ 3,140 $ 3,134 $ 41,889 $ — $ 24 $ 7,676 $ 81,924 2022 Commercial Residential Construction, Commercial Paycheck Protection Program Installment Lease Total Loans and leases ending balance: Individually evaluated for $ 37,959 $ 879 $ 5,541 $ 47,846 $ — $ — $ — $ 92,225 Collectively evaluated for 1,871,529 489,083 433,448 2,008,467 761 1,759 523,986 5,329,033 Total loans and leases $ 1,909,488 $ 489,962 $ 438,989 $ 2,056,313 $ 761 $ 1,759 $ 523,986 $ 5,421,258 2021 Commercial Residential Construction, Commercial Paycheck Protection Program Installment Lease Total Allowance for loan and lease losses Beginning balance $ 19,584 $ 2,400 $ 1,352 $ 41,183 $ — $ 15 $ 1,813 $ 66,347 Provision/(recapture) 1,263 ( 663 ) ( 504 ) ( 219 ) — ( 6 ) 1,586 1,457 Charge-offs ( 4,698 ) ( 124 ) ( 326 ) ( 9,015 ) — — ( 1,501 ) ( 15,664 ) Recoveries 769 15 — 1,180 — — 908 2,872 Ending balance $ 16,918 $ 1,628 $ 522 $ 33,129 $ — $ 9 $ 2,806 $ 55,012 Ending balance: Individually evaluated for impairment $ 6,538 $ — $ — $ 14,500 $ — $ — $ — $ 21,038 Collectively evaluated for impairment 8,570 622 519 18,265 — 7 2,806 30,789 Loans acquired with deteriorated credit quality 1,810 1,006 3 364 — 2 — 3,185 Total allowance for loan and lease losses $ 16,918 $ 1,628 $ 522 $ 33,129 $ — $ 9 $ 2,806 $ 55,012 2021 Commercial Residential Construction, Commercial Paycheck Protection Program Installment Lease Total Loans and leases ending balance: Individually evaluated for $ 35,051 $ 1,802 $ — $ 36,070 $ — $ — $ — $ 72,923 Collectively evaluated for 1,558,537 429,311 324,087 1,541,877 123,712 1,204 358,426 4,337,154 Loans acquired with deteriorated 72,160 49,401 1,312 4,014 - 164 — 127,051 Total loans and leases $ 1,665,748 $ 480,514 $ 325,399 $ 1,581,961 $ 123,712 $ 1,368 $ 358,426 $ 4,537,128 Note 5—Allowance for Credit Losses (continued) 2020 Commercial Residential Construction, Commercial Installment Lease Total Allowance for loan and lease losses Beginning balance $ 7,965 $ 1,990 $ 610 $ 19,377 $ 50 $ 1,944 $ 31,936 Provision/(recapture) 17,759 548 1,390 35,498 ( 35 ) 789 55,949 Charge-offs ( 6,407 ) ( 274 ) ( 701 ) ( 14,182 ) — ( 1,783 ) ( 23,347 ) Recoveries 267 136 53 490 — 863 1,809 Ending balance $ 19,584 $ 2,400 $ 1,352 $ 41,183 $ 15 $ 1,813 $ 66,347 Ending balance: Individually evaluated for impairment $ 5,034 $ 78 $ — $ 18,848 $ — $ — $ 23,960 Collectively evaluated for impairment 10,676 1,836 987 20,598 15 1,813 35,925 Loans acquired with deteriorated credit 3,874 486 365 1,737 — — 6,462 Total allowance for loan and lease losses $ 19,584 $ 2,400 $ 1,352 $ 41,183 $ 15 $ 1,813 $ 66,347 2020 Commercial Residential Construction, Commercial Paycheck Protection Program Installment Lease Total Loans and leases ending balance: Individually evaluated for $ 46,169 $ 1,830 $ — $ 47,356 $ — $ — $ - $ 95,355 Collectively evaluated for 1,267,017 491,601 226,620 1,311,366 517,815 1,803 227,141 4,043,363 Loans acquired with deteriorated 108,484 78,840 4,113 10,178 - 202 - 201,817 Total loans and leases $ 1,421,670 $ 572,271 $ 230,733 $ 1,368,900 $ 517,815 $ 2,005 $ 227,141 $ 4,340,535 The Company increased the allowance for credit losses - loans and leases by $ 26.9 million for the year ended December 31, 2022, which included a $ 12.2 million cumulative effective adjustment as of January 1, 2022 for the impact of adopting CECL. The remaining increase in current expected credit losses reflects increased provisions related to loan and lease portfolio growth, qualitative adjustments, and increases in individually evaluated loans. Portfolio growth, summarized by loan category in the previous tables, indicates growth in commercial and industrial loans of $ 474.4 million for the year and a related $ 7.5 million increase in ACL (excluding the CECL adoption adjustment). The commercial real estate portfolio grew $ 243.7 million from prior year resulting in an increase of $ 2.8 million to ACL. An increase in qualitative adjustments was allocated to address economic uncertainty and to address the negative credit impact of increased interest rates based on portfolio classification. Additionally, the allocation of ACL to the individually evaluated portfolio increased $ 6.9 million during the year due to migration of classified loans from the collectively evaluated portfolio. For the year ended December 31, 2022, the provision for credit losses on PCD loans decreased $ 1.6 million, primarily related to a $ 47.0 million decrease in loans outstanding and $ 341,000 of net recoveries on PCD loans. Comparisons between 2022 and 2021 balances are not presented because of the different classifications used for CECL adoption. The Company decreased the allowance by $ 11.3 million, and increased the allowance by $ 34.4 million for the years ended December 31, 2021 and 2020 , respectively. For acquired impaired loans, the Company decreased the allowance by $ 3.3 million and increased the allowance by $ 3.7 million for the years ended December 31, 2021 and 2020, respectively. For loans individually evaluated for impairment, the Company decreased the allowance by $ 2.9 million for the year ended December 31, 2021, and increased the allowance for credit losses by $ 13.3 million for the year ended December 31, 2020 . For loans collectively evaluated for impairment, the Company decreased the allowance by $ 5.1 million, and increased it by $ 17.5 million for the years ended December 31, 2021 and 2020, respectively. The following tables summarize the recorded investment, unpaid principal balance, related allowance, average recorded investment, and interest income recognized for loans and leases considered impaired as of December 31, 2021, and 2020, which excludes acquired impaired loans: Note 5—Allowance for Credit Losses (continued) 2021 Recorded Unpaid Related Average Interest With no related allowance recorded Commercial real estate $ 17,233 $ 19,252 $ — $ 26,041 $ 1,262 Residential real estate 1,802 1,919 — 2,647 123 Commercial and industrial 16,624 19,148 — 16,808 923 With an allowance recorded Commercial real estate 17,818 20,117 6,538 26,575 1,563 Residential real estate - - - 164 2 Commercial and industrial 19,446 21,198 14,500 27,251 2,114 Total impaired loans $ 72,923 $ 81,634 $ 21,038 $ 99,486 $ 5,987 2020 Recorded Unpaid Related Average Interest With no related allowance recorded Commercial real estate $ 32,473 $ 34,792 $ — $ 23,938 $ 1,835 Residential real estate 1,558 1,644 — 1,627 59 Construction, land development, and other land - - — 2,238 220 Commercial and industrial 17,944 19,917 — 16,359 989 With an allowance recorded Commercial real estate 13,696 14,919 5,034 13,022 1,023 Residential real estate 272 274 78 413 21 Commercial and industrial 29,412 32,018 18,848 21,354 2,217 Total impaired loans $ 95,355 $ 103,564 $ 23,960 $ 78,951 $ 6,364 For purposes of these tables, the unpaid principal balance represents the outstanding contractual balance. Impaired loans include loans that are individually evaluated for impairment as well as troubled debt restructurings for all loan categories. The sum of non‑accrual loans and loans past due 90 days still on accrual will differ from the total impaired loan amount. The Bank’s credit risk rating methodology assigns risk ratings from 1 to 10, where a higher rating represents higher risk. Risk ratings for all loans of $ 1.0 million or more are reviewed annually. The risk rating categories are described by the following groupings: Pass —Ratings 1‑4 define the risk levels of borrowers and guarantors that offer a minimal to an acceptable level of risk. Watch —A watch asset (rating of 5) has credit exposure that presents higher than average risk and warrants greater than routine attention by Bank personnel due to conditions affecting the borrower, the borrower’s industry or the economic environment. Special Mention —A special mention asset (rating of 6) has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Substandard Accrual —A substandard accrual asset (rating of 7) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in a distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. This classification may be used in limited cases, where despite credit severity, the borrower is current on payments and there is an agreed plan for credit remediation. Substandard Non‑Accrual —A substandard asset (rating of 8) has well‑defined weakness or weaknesses in cash flow and collateral coverage resulting in the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful —A doubtful asset (rating of 9) has all the weaknesses inherent in one classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss —A loss asset (rating of 10) is considered uncollectible and of such little value that its continuance as a realizable asset is not warranted. Note 5—Allowance for Credit Losses (continued) The following tables summarize the risk rating categories of the loans and leases considered for inclusion in the allowance for credit losses calculation, as of December 31, 2022 and 2021. Term loans amortized cost by origination year Revolving Total 2022 2021 2020 2019 2018 Prior Loans Loans (1) Commercial Real Estate Pass $ 471,009 $ 510,529 $ 207,765 $ 111,792 $ 84,382 $ 324,271 $ 28,343 $ 1,738,091 Watch 6,422 12,723 20,583 11,004 17,269 44,462 — 112,463 Special Mention — — 121 1,075 1,232 10,075 — 12,503 Substandard — 1,910 915 13,042 12,685 22,915 — 51,467 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 477,431 $ 525,162 $ 229,384 $ 136,913 $ 115,568 $ 401,723 $ 28,343 $ 1,914,524 Residential Real Estate Pass $ 68,752 $ 59,075 $ 41,768 $ 31,726 $ 48,432 $ 170,279 $ 49,622 $ 469,654 Watch — — 1,137 682 4,098 9,026 2,586 17,529 Special Mention — — 323 32 420 876 — 1,651 Substandard — — 234 381 296 2,185 660 3,756 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 68,752 $ 59,075 $ 43,462 $ 32,821 $ 53,246 $ 182,366 $ 52,868 $ 492,590 Construction, Land Development, Pass $ 62,310 $ 203,672 $ 61,895 $ 27,189 $ 26,489 $ 38,186 $ 185 $ 419,926 Watch — — — 4,409 — 3,064 — 7,473 Special Mention — — 1,845 — 4,199 — — 6,044 Substandard — — — 1,530 4,012 4 — 5,546 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 62,310 $ 203,672 $ 63,740 $ 33,128 $ 34,700 $ 41,254 $ 185 $ 438,989 Commercial & Industrial Pass $ 508,664 $ 305,056 $ 137,335 $ 72,486 $ 96,304 $ 113,965 $ 549,431 $ 1,783,241 Watch 16,657 20,856 15,857 32,282 19,362 9,809 47,119 161,942 Special Mention — 13,056 697 1,162 2,958 7,831 22,320 48,024 Substandard 1,156 3,415 6,671 11,949 5,434 25,275 10,738 64,638 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 526,477 $ 342,383 $ 160,560 $ 117,879 $ 124,058 $ 156,880 $ 629,608 $ 2,057,845 Installment and Other Pass $ 332 $ 146 $ 65 $ 79 $ 15 $ 584 $ 429 $ 1,650 Watch 34 — — — 2 73 — 109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 366 $ 146 $ 65 $ 79 $ 17 $ 657 $ 429 $ 1,759 Lease Financing Receivables Pass $ 296,395 $ 148,588 $ 53,642 $ 14,478 $ 7,245 $ 934 $ — $ 521,282 Watch 93 1,560 26 — — — — 1,679 Special Mention — — 290 182 250 23 — 745 Substandard 35 82 80 77 6 — 280 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 296,523 $ 150,230 $ 54,038 $ 14,737 $ 7,501 $ 957 $ — $ 523,986 Total Loans and Leases Pass $ 1,407,462 $ 1,227,066 $ 502,470 $ 257,750 $ 262,867 $ 648,219 $ 628,010 $ 4,933,844 Watch 23,206 35,139 37,603 48,377 40,731 66,434 49,705 301,195 Special Mention — 13,056 3,276 2,451 9,059 18,805 22,320 68,967 Substandard 1,191 5,407 7,900 26,979 22,433 50,379 11,398 125,687 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,431,859 $ 1,280,668 $ 551,249 $ 335,557 $ 335,090 $ 783,837 $ 711,433 $ 5,429,693 1- Includes $ 8.4 million of substandard loans classified as held for sale. Note 5—Allowance for Credit Losses (continued) 2021 Commercial Residential Construction, Commercial Paycheck Protection Program Installment Lease Total 1 Pass $ 1,397,228 $ 406,948 $ 286,434 $ 1,341,826 $ 123,712 $ 1,123 $ 354,380 $ 3,911,651 Watch 123,248 19,062 31,768 177,638 — 81 1,992 353,789 Special Mention 37,340 3,118 5,885 21,586 — — 1,609 69,538 Substandard 35,772 1,985 — 36,897 — — 348 75,002 Doubtful — — — — — — 97 97 Loss — — — — — — — — Total $ 1,593,588 $ 431,113 $ 324,087 $ 1,577,947 $ 123,712 $ 1,204 $ 358,426 $ 4,410,077 1- Prior to the adoption of CECL on January 1, 2022, acquired impaired loans were assessed for credit losses based on expected cash flows and were not reported in the risk rating categories. In addition, an allowance for credit losses is established as of the acquisition date or upon the adoption of CECL for loans previously classified as acquired impaired, as PCD loans are no longer recorded net of a credit-related acquisition adjustment Note 5—Allowance for Credit Losses (continued) The following tables summarize contractual delinquency information for loans and leases by category as of December 31, 2022 and 2021: 2022 2021 2020 2019 2018 Prior Revolving Total (1) Commercial Real Estate Current $ 477,334 $ 525,048 $ 229,260 $ 132,067 $ 112,126 $ 387,349 $ 28,343 $ 1,891,527 30-59 Days Past Due 97 54 — — 471 2,060 — 2,682 60-89 Days Past Due — — — — — 1,016 — 1,016 Greater than 90 Accruing — — — — — — — — Non-accrual — 60 124 4,846 2,971 11,298 — 19,299 Total Past Due 97 114 124 4,846 3,442 14,374 — 22,997 Total $ 477,431 $ 525,162 $ 229,384 $ 136,913 $ 115,568 $ 401,723 $ 28,343 $ 1,914,524 Residential Real Estate Current $ 68,752 $ 59,075 $ 40,731 $ 32,440 $ 52,950 $ 180,128 $ 52,146 $ 486,222 30-59 Days Past Due — — 2,497 — — 108 122 2,727 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — 234 381 296 2,130 600 3,641 Total Past Due — — 2,731 381 296 2,238 722 6,368 Total $ 68,752 $ 59,075 $ 43,462 $ 32,821 $ 53,246 $ 182,366 $ 52,868 $ 492,590 Construction, Land Development, Current $ 62,310 $ 203,672 $ 63,740 $ 33,128 $ 34,700 $ 41,250 $ 185 $ 438,985 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — — — — 4 — 4 Total Past Due — — — — — 4 — 4 Total $ 62,310 $ 203,672 $ 63,740 $ 33,128 $ 34,700 $ 41,254 $ 185 $ 438,989 Commercial & Industrial Current $ 524,341 $ 339,915 $ 156,713 $ 113,350 $ 122,523 $ 153,039 $ 628,747 $ 2,038,628 30-59 Days Past Due 980 1,371 391 1,717 368 922 — 5,749 60-89 Days Past Due — 8 80 87 — 472 — 647 Greater than 90 Accruing — — — — — — — — Non-accrual 1,156 1,089 3,376 2,725 1,167 2,447 861 12,821 Total Past Due 2,136 2,468 3,847 4,529 1,535 3,841 861 19,217 Total $ 526,477 $ 342,383 $ 160,560 $ 117,879 $ 124,058 $ 156,880 $ 629,608 $ 2,057,845 Installment and Other Current $ 366 $ 146 $ 65 $ 79 $ 17 $ 657 $ 429 $ 1,759 30-59 Days Past Due — — — — — — — — 60-89 Days Past Due — — — — — — — — Greater than 90 Accruing — — — — — — — — Non-accrual — — — — — — — — Total Past Due — — — — — — — — Total $ 366 $ 146 $ 65 $ 79 $ 17 $ 657 $ 429 $ 1,759 Lease Financing Receivables Current $ 294,948 $ 149,642 $ 53,680 $ 14,557 $ 7,411 $ 955 $ — $ 521,193 30-59 Days Past Due 1,461 467 295 104 77 2 — 2,406 60-89 Days Past Due 79 39 — — 9 — — 127 Greater than 90 Accruing — — — — — — — — Non-accrual 35 82 63 76 4 — — 260 Total Past Due 1,575 588 358 180 90 2 — 2,793 Total $ 296,523 $ 150,230 $ 54,038 $ 14,737 $ 7,501 $ 957 $ — $ 523,986 Total Loans and Leases Current $ 1,428,051 $ 1,277,498 $ 544,189 $ 325,621 $ 329,727 $ 763,378 $ 709,850 $ 5,378,314 30-59 Days Past Due 2,538 1,892 3,183 1,821 916 3,092 122 13,564 60-89 Days Past Due 79 47 80 87 9 1,488 — 1,790 Greater than 90 Accruing — — — — — — — — Non-accrual 1,191 1,231 3,797 8,028 4,438 15,879 1,461 36,025 Total Past Due 3,808 3,170 7,060 9,936 5,363 20,459 1,583 51,379 Total $ 1,431,859 $ 1,280,668 $ 551,249 $ 335,557 $ 335,090 $ 783,837 $ 711,433 $ 5,429,693 1 - Includes $ 8.4 million of non-accrual loans classified as loans held for sale. Total non-accrual loans without an allowance included $ 10.8 million of commercial real estate loans, $ 4.3 million of commercial and industrial loans, and $ 2.6 million of residential real estate loans, as of December 31, 2022. Note 5—Allowance for Credit Losses (continued) 2021 30-59 60-89 Greater than Non- Total Current Total 1 Commercial real estate $ 5,185 $ 2,361 $ — $ 12,751 $ 20,297 $ 1,573,291 $ 1,593,588 Residential real estate 14,282 852 — 1,450 16,584 414,529 431,113 Construction, land development, and 5,885 — — — 5,885 318,202 324,087 Commercial and industrial 2,479 1,097 — 8,600 12,176 1,565,771 1,577,947 Paycheck Protection Program — — — — — 123,712 123,712 Installment and other 3 35 — — 38 1,166 1,204 Lease financing receivables 1,661 251 — 329 2,241 356,185 358,426 Total $ 29,495 $ 4,596 $ — $ 23,130 $ 57,221 $ 4,352,856 $ 4,410,077 1- Prior to the adoption of CECL on January 1, 2022, acquired impaired loans with an accretable yield were considered current and were not included in delinquency information loan totals. In addition, acquired impaired loans with an accretable yield were excluded from non-accrual loans. Subsequent to adoption, PCD loans, including those previously classified as acquired impaired, are included in past due and non-accrual loan totals. In addition, an allowance for credit losses is established as of the acquisition date or upon the adoption of CECL for loans previously classified as acquired impaired, as PCD loans are no longer recorded net of a credit-related acquisition adjustment. Trouble debt restructurings are granted due to borrower financial difficulty and provide for a modification of loan repayment terms. TDRs are treated in the same manner as impaired loans for purposes of calculating the allowance for credit losses - loans and leases. The tables below present TDRs by loan category as of December 31, 2022, 2021, and 2020. Refer to Note 1—Summary of Significant Accounting Policies for the accounting policy for TDRs. 2022 Number Pre-Modification Post-Modification Charge-offs Individually Evaluated Accruing: Commercial real estate 2 $ 551 $ 551 $ — $ 109 Commercial and industrial 1 24 24 — 34 Residential real estate 2 144 144 — — Total accruing 5 719 719 — 143 Non-accruing: Commercial real estate 3 830 623 207 73 Commercial and industrial 6 2,017 982 1,035 38 Total non-accruing 9 2,847 1,605 1,242 111 Total troubled debt restructurings 14 $ 3,566 $ 2,324 $ 1,242 $ 254 2021 Number Pre-Modification Post-Modification Charge-offs Specific Accruing: Commercial real estate 5 $ 1,703 $ 1,703 $ — $ 215 Commercial and industrial 1 56 56 — 131 Residential real estate 2 168 168 — — Total accruing 8 1,927 1,927 — 346 Non-accruing: Commercial real estate 4 1,034 918 116 111 Commercial and industrial 3 1,745 588 1,157 — Total non-accruing 7 2,779 1,506 1,273 111 Total troubled debt restructurings 15 $ 4,706 $ 3,433 $ 1,273 $ 457 Note 5—Allowance for Credit Losses (continued) 2020 Number Pre-Modification Post-Modification Charge-offs Specific Accruing: Commercial real estate 8 $ 2,187 $ 2,187 $ — $ 104 Commercial and industrial 1 78 78 — 78 Residential real estate 3 230 230 — — Total accruing 12 2,495 2,495 — 182 Non-accruing: Commercial real estate Commercial and industrial 4 1,609 1,362 247 102 Residential real estate 14 4,420 4,288 132 3,157 Total non-accruing 18 6,029 5,650 379 3,259 Total troubled debt restructurings 30 $ 8,524 $ 8,145 $ 379 $ 3,441 The Company recognized $ 2.5 million of interest income on non-accrual loans and leases for the year ended December 31, 2022. There was no commitment outstanding on troubled debt restructurings at December 31, 2022, 2021 or 2020. Loans modified as troubled debt restructurings that occurred during the years ended December 31, 2022, 2021, and 2020: For the Year Ended December 31, 2022 2021 2020 Accruing: Beginning balance $ 1,927 $ 2,495 $ 1,771 Additions — 281 818 Net payments ( 1,208 ) ( 636 ) ( 1,598 ) Net transfers (to) from non-accrual — ( 213 ) 1,504 Ending balance 719 1,927 2,495 Non-accruing: Beginning balance 1,506 5,650 8,800 Additions 756 673 5,771 Net payments ( 536 ) ( 3,671 ) ( 2,087 ) Charge-offs ( 121 ) ( 1,359 ) ( 5,330 ) Net transfers (to) from accrual — 213 ( 1,504 ) Ending balance 1,605 1,506 5,650 Total troubled debt restructurings $ 2,324 $ 3,433 $ 8,145 There were no troubled debt restructurings that subsequently defaulted within 12 months of the restructure date during the year ended December 31, 2022 or 2021. Troubled debt restructurings that subsequently defaulted within 12 months of the restructure date during the years ended December 31, 2020 had a recorded investment of $ 36,000 . The following table presents the amortized cost basis of collateral-dependent loans and leases, which are individually evaluated to determine expected credit losses as of December 31, 2022: Commercial Construction Non-owner Occupied Commercial Owner-Occupied Commercial Multi-Family Single Family Residence (1st Lien) Single Family Residence (2nd Lien) Business Assets Total Commercial real estate $ — $ 9,749 $ 28,210 $ — $ — $ — $ — $ 37,959 Residential real estate — — — 237 422 220 — 879 Construction, land development, 5,541 — — — — — — 5,541 Commercial and industrial — — — — — — 26,034 26,034 Total $ 5,541 $ 9,749 $ 28,210 $ 237 $ 422 $ 220 $ 26,034 $ 70,413 Note 5—Allowance for Credit Losses (continued) The following table presents the change in balance for allowance for credit losses - unfunded commitments, which are included in the Consolidated Statement of Financial Condition as part of Accrued expenses and other liabilities, as of December 31, 2022, 2021 and 2020: For the Year Ended December 31, 2022 2021 2020 Beginning balance $ 1,403 $ 1,887 $ 1,159 Impact of CECL adoption 1,595 — — Provision/(recapture) for/of unfunded commitments 1,205 ( 484 ) 728 Ending balance $ 4,203 $ 1,403 $ 1,887 |