| ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES The Company maintains an ACL at a level determined to be adequate to absorb expected credit losses associated with the Company’s financial instruments over the life of those instruments as of the balance sheet date. The Company develops and documents a systematic ACL methodology based on the following portfolio segments: 1) Commercial Real Estate, (“CRE”), 2) Commercial and Industrial, (“C&I”), 3) Residential Mortgages, 4) Other Consumer, 5) Construction and 6) Other. The Company’s loan portfolio is segmented by homogeneous loan types that behave similarly to economic cycles. The segmentation in the current expected credit losses, (“CECL”), model is different from the segmentation in the Incurred Loss model. The following is a discussion of the key risks by portfolio segment that management assesses in preparing the ACL. CRE loans are secured by commercial purpose real estate, including both owner occupied properties and investment properties, for various purposes such as hotels, strip malls and apartments. Operations of the individual projects as well as global cash flows of the debtors are the primary sources of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type as well as the business. C&I loans are made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. Cash flow from the operations of the borrower is the primary source of repayment for these loans. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the industry of the borrower. Collateral for these types of loans often do not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. These loans are also made to local and state municipalities for various purposes including refinancing existing obligations, infrastructure up-fit and expansion, or to purchase new equipment. These loans may be secured by general obligations from the municipal authority or revenues generated by infrastructure and equipment financed by the Company. The primary repayment source for these loans include the tax base of the municipality, specific revenue streams related to the infrastructure financed, and other business operations of the municipal authority. The health and stability of state and local economies directly impacts each municipality’s tax basis and are important indicators of risk for this segment. The ability of each municipality to increase taxes and fees to offset debt service requirements give this type of loan a very low risk profile in the continuum of the Company’s loan portfolio. Residential Mortgages are loans secured by first and second liens such as home equity loans, home equity lines of credit and 1-4 family residential mortgages, including purchased money mortgages. The primary source of repayment for these loans is the income of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The state of the local housing market can also have a significant impact on this segment because low demand and/or declining home values can limit the ability of borrowers to sell a property and satisfy the debt. Other Consumer loans are made to individuals and may be either secured by assets other than 1-4 family residences or unsecured. This segment includes auto loans and unsecured loans and lines. The primary source of repayment for these loans is the income and assets of the borrower. The condition of the local economy, in particular the unemployment rate, is an important indicator of risk for this segment. The value of the collateral, if there is any, is less likely to be a source of repayment due to less certain collateral values. Construction loans include both commercial and consumer. Commercial loans are made to finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. While the risk of these loans is generally confined to the construction period, if there are problems, the project may not be completed, and as such, may not provide sufficient cash flow on its own to service the debt or have sufficient value in a liquidation to cover the outstanding principal. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the type of project and the experience and resources of the developer. Consumer loans are made for the construction of residential homes for which a binding sales contract exists and generally are for a period of time sufficient to complete construction. Residential construction loans to individuals generally provide for the payment of interest only during the construction phase. Credit risk for residential real estate construction loans can arise from construction delays, cost overruns, failure of the contractor to complete the project to specifications and economic conditions that could impact demand for or supply of the property being constructed. Other loans include unique risk attributes considered inconsistent with our current underwriting standards. The ACL reserve for the Other segment is based on a discounted cash flow methodology and reserves will fluctuate based on expected cash flow changes in the future. These inconsistencies may include, but are not limited to i) transaction and/or relationship sizes that exceed limits established in 2018, ii) overreliance on secondary, tertiary or guarantor cash flow, iii) land acquisition loans without a defined source of amortization, and iv) loan structures on operating lines of credit dependent on the value of real estate rather than trading assets. Management continuously assesses underwriting standards, but significantly enhanced these standards in 2018. Our model is based on our best estimate of facts known with the most current information. Certain portions of the CECL model are inherently subjective and include, but are not limited to estimates with respect to: prepayment speeds, the timing of prepayments, potential losses given default, discount rates and the timing of future cash flows. Management utilizes widely published economic forecasts as the basis for the regression analysis used to estimate the probability of default in the baseline model. The peaks and troughs of these forecasts serve as guardrails for potential subjective adjustments. In addition to considering the outcomes based on the range of forecasts, management recognizes that the assumptions used in economic forecasts may not perfectly align with our market area, risk profile or unique attributes of our portfolio along with other important considerations. Severe changes in forecasts can also create significant variability and management must assess not only the absolute balance of reserves but also consider the appropriateness of the velocity of change. Therefore, management developed a framework to assess the tolerance and reasonableness of the CECL modeling process by challenging certain elements of the forecasts, when appropriate. These outcomes, known as “challenger models,” provide opportunities to examine and subjectively adjust the CECL model output and are designed to be counter cyclical, thereby reducing variability. Credit Quality Indicators: The Company’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk grading system is based on debt service coverage, collateral values and other subjective factors. Mortgage and consumer loans are defaulted to a pass grade until a loan migrates to past due status. The Company has a loan review policy and annual scope report that details the level of loan review for loans in a given year. The annual loan review provides the Credit Risk Committee with an independent analysis of the following: 1) credit quality of the loan portfolio, 2) compliance with the loan policy, 3) adequacy of documentation in credit files and 4) validity of risk ratings. Since 2020 and continuing into 2023, the Company used a five step approach for loan review in the following categories: • Individual reviews of the top twenty large loan relationships (“LLRs”), which are defined as any individual commercial loan or aggregate commercial relationship totaling $2.0 million or more; • A sampling of small LLRs, which are defined as individual commercial loans or relationships with aggregate exposure of $2.0 million or more but not included in the top twenty LLRs; • A sampling review of Credit Risk Committee modifications, including new and existing loans to provide perspective on the appropriateness of the modification in relation to established policies and procedures; • A sampling review of non-organic commercial loans and those commercial loans approved outside of the Credit Risk Committee; and • Focus reviews of office and land development to evaluate segment risk rather than individual loan risk. Focus reviews are performed annually on a rotational basis. The Company’s internally assigned grades are as follows: Pass – The Company uses six grades of pass, including its watch rating. Generally, a pass rating indicates that the loan is currently performing and is of high quality. Special Mention – Assets with potential weaknesses that warrant management’s close attention and if left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Substandard – Assets that are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged, if any. Assets so classified have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. Such assets are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Assets with 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 known facts, conditions, and values, highly questionable and improbable. Loss – Assets considered of such little value that its continuance on the books is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The ability of borrowers to repay commercial loans is dependent upon the success of their business and general economic conditions. Due to the greater potential for loss within our commercial portfolio, we monitor the commercial loan portfolio through an internal risk rating system. Loan risk ratings are assigned based upon the creditworthiness of the borrower and are reviewed on an ongoing basis according to our internal policies. Loans rated special mention or substandard have potential or well-defined weaknesses not generally found in high quality, performing loans, and require attention from management to limit loss. The following table presents portfolio loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the periods presented: March 31, 2023 Risk Rating (Dollars in Thousands) 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Portfolio Loans Commercial Real Estate Pass $ 95,614 $ 434,042 $ 198,482 $ 136,670 $ 129,372 $ 540,025 $ 28,568 $ 1,562,773 Special Mention — — 215 — — 10,515 — 10,730 Substandard — — — — — 2,172 — 2,172 Total Commercial Real Estate $ 95,614 $ 434,042 $ 198,697 $ 136,670 $ 129,372 $ 552,712 $ 28,568 $ 1,575,675 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Pass $ 919 $ 21,855 $ 43,300 $ 30,628 $ 8,454 $ 156,986 $ 22,230 $ 284,372 Special Mention — — — 2,880 — — — 2,880 Substandard — — 45 21 38 2,896 41 3,041 Total Commercial and Industrial $ 919 $ 21,855 $ 43,345 $ 33,529 $ 8,492 $ 159,882 $ 22,271 $ 290,293 YTD Gross Charge-offs $ — $ — $ — $ — $ 1 $ — $ — $ 1 Residential Mortgages Pass $ 3,641 $ 200,122 $ 191,588 $ 80,803 $ 49,310 $ 117,555 $ 27,217 $ 670,236 Special Mention — — — — — 937 34 971 Substandard — — 1,212 — 863 1,808 250 4,133 Total Residential Mortgages $ 3,641 $ 200,122 $ 192,800 $ 80,803 $ 50,173 $ 120,300 $ 27,501 $ 675,340 YTD Gross Charge-offs $ — $ — $ 3 $ — $ — $ — $ — $ 3 Other Consumer Pass $ 22,010 $ 7,171 $ 4,238 $ 5,783 $ 150 $ 1,596 $ 297 $ 41,245 Special Mention — — — — — — — — Substandard — — 42 — — 21 — 63 Total Other Consumer $ 22,010 $ 7,171 $ 4,280 $ 5,783 $ 150 $ 1,617 $ 297 $ 41,308 YTD Gross Charge-offs $ 50 $ 337 $ 135 $ 32 $ 84 $ 19 $ — $ 657 Construction Pass $ 29,635 $ 157,302 $ 113,386 $ 38,318 $ 4,624 $ 7,867 $ 6,693 $ 357,825 Special Mention — — — — — 67 — 67 Substandard — 68 — 2,090 — 953 — 3,111 Total Construction $ 29,635 $ 157,370 $ 113,386 $ 40,408 $ 4,624 $ 8,887 $ 6,693 $ 361,003 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other Pass $ — $ — $ — $ — $ — $ 180,679 $ — $ 180,679 Special Mention — — — — — — — — Substandard — — — — — 124,600 — 124,600 Total Other Loans $ — $ — $ — $ — $ — $ 305,279 $ — $ 305,279 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Portfolio Loans Pass $ 151,819 $ 820,492 $ 550,994 $ 292,202 $ 191,910 $ 1,004,708 $ 85,005 $ 3,097,130 Special Mention — — 215 2,880 — 11,519 34 14,648 Substandard — 68 1,299 2,111 901 132,450 291 137,120 Total Portfolio Loans $ 151,819 $ 820,560 $ 552,508 $ 297,193 $ 192,811 $ 1,148,677 $ 85,330 $ 3,248,898 Current YTD Period: YTD Gross Charge-offs $ 50 $ 337 $ 138 $ 32 $ 85 $ 19 $ — $ 661 December 31, 2022 Risk Rating (Dollars in Thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Total Portfolio Loans Commercial Real Estate Pass $ 418,939 $ 186,226 $ 139,148 $ 130,521 $ 215,498 $ 335,659 $ 31,349 $ 1,457,340 Special Mention — 218 — — 9,919 659 — 10,796 Substandard — — — — 2,105 321 — 2,426 Total Commercial Real Estate $ 418,939 $ 186,444 $ 139,148 $ 130,521 $ 227,522 $ 336,639 $ 31,349 $ 1,470,562 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial and Industrial Pass $ 23,104 $ 47,137 $ 35,819 $ 9,022 $ 10,639 $ 154,473 $ 23,699 $ 303,893 Special Mention — — 2,887 — — — — 2,887 Substandard — 56 — 18 97 2,800 41 3,012 Total Commercial and Industrial $ 23,104 $ 47,193 $ 38,706 $ 9,040 $ 10,736 $ 157,273 $ 23,740 $ 309,792 YTD Gross Charge-offs $ 3,432 $ — $ — $ — $ 4 $ — $ — $ 3,436 Residential Mortgages Pass $ 200,725 $ 184,718 $ 81,446 $ 50,770 $ 70,659 $ 39,411 $ 25,315 $ 653,044 Special Mention — — — — 429 520 34 983 Substandard — 1,212 — 865 444 1,400 — 3,921 Total Residential Mortgages $ 200,725 $ 185,930 $ 81,446 $ 51,635 $ 71,532 $ 41,331 $ 25,349 $ 657,948 YTD Gross Charge-offs $ — $ — $ — $ — $ 22 $ 24 $ — $ 46 Other Consumer Pass $ 24,100 $ 10,006 $ 7,323 $ 1,999 $ 512 $ 256 $ 299 $ 44,495 Special Mention — — — — — — — — Substandard — 45 1 — 1 20 — 67 Total Other Consumer $ 24,100 $ 10,051 $ 7,324 $ 1,999 $ 513 $ 276 $ 299 $ 44,562 YTD Gross Charge-offs $ 280 $ 625 $ 254 $ 358 $ 39 $ 121 $ — $ 1,677 Construction Pass $ 149,535 $ 117,466 $ 41,808 $ 4,938 $ 25,523 $ 7,190 $ 6,056 $ 352,516 Special Mention — — — — — 69 — 69 Substandard — — — — 92 876 — 968 Total Construction $ 149,535 $ 117,466 $ 41,808 $ 4,938 $ 25,615 $ 8,135 $ 6,056 $ 353,553 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Other Pass $ — $ — $ — $ — $ — $ 180,745 $ — $ 180,745 Special Mention — — — — — — — — Substandard — — — — 74,050 57,701 — 131,751 Total Other Loans $ — $ — $ — $ — $ 74,050 $ 238,446 $ — $ 312,496 YTD Gross Charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Total Portfolio Loans Pass $ 816,403 $ 545,553 $ 305,544 $ 197,250 $ 322,831 $ 717,734 $ 86,718 $ 2,992,033 Special Mention — 218 2,887 — 10,348 1,248 34 14,735 Substandard — 1,313 1 883 76,789 63,118 41 142,145 Total Portfolio Loans $ 816,403 $ 547,084 $ 308,432 $ 198,133 $ 409,968 $ 782,100 $ 86,793 $ 3,148,913 Current YTD Period: YTD Gross Charge-offs $ 3,712 $ 625 $ 254 $ 358 $ 65 $ 145 $ — $ 5,159 The following table presents portfolio loan balances by year of origination and performing and nonperforming status for our portfolio segments as of the periods presented: March 31, 2023 (Dollars in Thousands) 2023 2022 2021 2020 2019 2018 and Prior Revolving Total Portfolio Loans Commercial Real Estate Performing $ 95,614 $ 434,042 $ 198,697 $ 136,670 $ 129,372 $ 550,662 $ 28,568 $ 1,573,625 Nonperforming — — — — — 2,050 — 2,050 Total Commercial Real Estate $ 95,614 $ 434,042 $ 198,697 $ 136,670 $ 129,372 $ 552,712 $ 28,568 $ 1,575,675 Commercial and Industrial Performing $ 919 $ 21,855 $ 43,300 $ 33,508 $ 8,460 $ 159,880 $ 22,230 $ 290,152 Nonperforming — — 45 21 32 2 41 141 Total Commercial and Industrial $ 919 $ 21,855 $ 43,345 $ 33,529 $ 8,492 $ 159,882 $ 22,271 $ 290,293 Residential Mortgages Performing $ 3,641 $ 200,122 $ 191,588 $ 80,803 $ 49,310 $ 119,144 $ 27,501 $ 672,109 Nonperforming — — 1,212 — 863 1,156 — 3,231 Total Residential Mortgages $ 3,641 $ 200,122 $ 192,800 $ 80,803 $ 50,173 $ 120,300 $ 27,501 $ 675,340 Other Consumer Performing $ 22,010 $ 7,171 $ 4,275 $ 5,783 $ 150 $ 1,617 $ 297 $ 41,303 Nonperforming — — 5 — — — — 5 Total Other Consumer $ 22,010 $ 7,171 $ 4,280 $ 5,783 $ 150 $ 1,617 $ 297 $ 41,308 Construction Performing $ 29,635 $ 157,370 $ 113,386 $ 38,318 $ 4,624 $ 8,036 $ 6,693 $ 358,062 Nonperforming — — — 2,090 — 851 — 2,941 Total Construction $ 29,635 $ 157,370 $ 113,386 $ 40,408 $ 4,624 $ 8,887 $ 6,693 $ 361,003 Other Performing $ — $ — $ — $ — $ — $ 305,279 $ — $ 305,279 Nonperforming — — — — — — — — Total Other Loans $ — $ — $ — $ — $ — $ 305,279 $ — $ 305,279 Total Portfolio Loans Performing $ 151,819 $ 820,560 $ 551,246 $ 295,082 $ 191,916 $ 1,144,618 $ 85,289 $ 3,240,530 Nonperforming — — 1,262 2,111 895 4,059 41 8,368 Total Portfolio Loans $ 151,819 $ 820,560 $ 552,508 $ 297,193 $ 192,811 $ 1,148,677 $ 85,330 $ 3,248,898 December 31, 2022 (Dollars in Thousands) 2022 2021 2020 2019 2018 2017 and Prior Revolving Total Portfolio Loans Commercial Real Estate Performing $ 418,939 $ 186,444 $ 139,148 $ 130,521 $ 225,416 $ 336,441 $ 31,349 $ 1,468,258 Nonperforming — — — — 2,106 198 — 2,304 Total Commercial Real Estate $ 418,939 $ 186,444 $ 139,148 $ 130,521 $ 227,522 $ 336,639 $ 31,349 $ 1,470,562 Commercial and Industrial Performing $ 23,104 $ 47,147 $ 38,706 $ 9,022 $ 10,639 $ 157,271 $ 23,699 $ 309,588 Nonperforming — 46 — 18 97 2 41 204 Total Commercial and Industrial $ 23,104 $ 47,193 $ 38,706 $ 9,040 $ 10,736 $ 157,273 $ 23,740 $ 309,792 Residential Mortgages Performing $ 200,725 $ 184,718 $ 81,446 $ 50,770 $ 71,313 $ 40,362 $ 25,349 $ 654,683 Nonperforming — 1,212 — 865 219 969 — 3,265 Total Residential Mortgages $ 200,725 $ 185,930 $ 81,446 $ 51,635 $ 71,532 $ 41,331 $ 25,349 $ 657,948 Other Consumer Performing $ 24,100 $ 10,045 $ 7,323 $ 1,999 $ 512 $ 276 $ 299 $ 44,554 Nonperforming — 6 1 — 1 — — 8 Total Other Consumer $ 24,100 $ 10,051 $ 7,324 $ 1,999 $ 513 $ 276 $ 299 $ 44,562 Construction Performing $ 149,535 $ 117,466 $ 41,808 $ 4,938 $ 25,615 $ 7,271 $ 6,056 $ 352,689 Nonperforming — — — — — 864 — 864 Total Construction $ 149,535 $ 117,466 $ 41,808 $ 4,938 $ 25,615 $ 8,135 $ 6,056 $ 353,553 Other Performing $ — $ — $ — $ — $ 74,050 $ 238,446 $ — $ 312,496 Nonperforming — — — — — — — Total Other Loans $ — $ — $ — $ — $ 74,050 $ 238,446 $ — $ 312,496 Total Portfolio Loans Performing $ 816,403 $ 545,820 $ 308,431 $ 197,250 $ 407,545 $ 780,067 $ 86,752 $ 3,142,268 Nonperforming — 1,264 1 883 2,423 2,033 41 6,645 Total Portfolio Loans $ 816,403 $ 547,084 $ 308,432 $ 198,133 $ 409,968 $ 782,100 $ 86,793 $ 3,148,913 March 31, 2023 (Dollars in Thousands) Current Loans Loans Total Nonaccrual Total Portfolio Commercial Real Estate $ 1,572,734 $ 891 $ — $ 891 $ 2,050 $ 1,575,675 Commercial and Industrial 290,128 13 11 24 141 290,293 Residential Mortgages 671,244 860 5 865 3,231 675,340 Other Consumer 40,830 284 189 473 5 41,308 Construction 357,984 67 11 78 2,941 361,003 Other 305,279 — — — — 305,279 Total $ 3,238,199 $ 2,115 $ 216 $ 2,331 $ 8,368 $ 3,248,898 December 31, 2022 (Dollars in Thousands) Current Loans Loans Total Nonaccrual Total Portfolio Commercial Real Estate $ 1,468,154 $ 104 $ — $ 104 $ 2,304 $ 1,470,562 Commercial and Industrial 309,305 274 9 283 204 309,792 Residential Mortgages 654,238 445 — 445 3,265 657,948 Other Consumer 44,013 337 204 541 8 44,562 Construction 349,225 1,321 2,143 3,464 864 353,553 Other 312,496 — — — — 312,496 Total $ 3,137,431 $ 2,481 $ 2,356 $ 4,837 $ 6,645 $ 3,148,913 There were no loans past due 90 days or more and still accruing at March 31, 2023 and December 31, 2022. Loans past due 90 days are automatically transferred to nonaccrual status. Loans past due 30 to 89 days and still accruing decreased $2.5 million to $2.3 million at March 31, 2023 compared to $4.8 million at December 31, 2022 primarily in the construction category related to one $2.1 million residential construction relationship that moved to nonaccrual during the period. There were no nonaccrual or past due loans related to loans held-for-sale at March 31, 2023 or December 31, 2022. The following table presents loans on nonaccrual status and loans past due 90 days or more and still accruing by portfolio segment for the periods presented: March 31, 2023 (Dollars in Thousands) Beginning of End of Nonaccrual Past Due Commercial Real Estate $ 2,304 $ 2,050 $ — $ — Commercial and Industrial 204 141 — — Residential Mortgages 3,265 3,231 — — Other Consumer 8 5 — — Construction 864 2,941 — — Other — — — — Total Portfolio Loans $ 6,645 $ 8,368 $ — $ — December 31, 2022 (Dollars in Thousands) Beginning of End of Nonaccrual Past Due Commercial Real Estate $ 3,337 $ 2,304 $ — $ — Commercial and Industrial 451 204 — — Residential Mortgages 2,551 3,265 — — Other Consumer 73 8 — — Construction 985 864 — — Other — — — — Total Portfolio Loans $ 7,397 $ 6,645 $ — $ — A loan is considered nonperforming when we transfer the interest methodology from accrual to nonaccrual. Nonaccrual status recognizes that the collection in full of both principal and interest is unlikely. Without applying additional scrutiny at a granular level, we believe delinquency to be a leading indicator with respect to the likelihood of collection in full of both principal and interest. Accordingly, we automatically transfer loans to nonaccrual status if they are 90 or more days delinquent. Management reserves the right to exercise discretion at the individual loan level. For example, we may elect to transfer a loan to nonaccrual regardless of the delinquency status if we believe the collection in full of both principal and interest to be unlikely. We may also elect to retain a loan that is 90 or more days delinquent in accrual status if we believe the loan is well secured and in the process of collection. Nonaccrual loans, and loans that have been characterized as Restructured Loans may be individually evaluated for credit losses in the Allowance for Credit Losses model if the loan commitment is $1.0 million or more unless we elect to maintain the loan in the general pool. During the three months ended March 31, 2023 and March 31, 2022, respectively, no material amount of interest income was recognized on nonperforming loans subsequent to their classification as nonperforming loans. The following table presents the amortized cost basis of collateral-dependent individually evaluated loans as of the periods presented. Changes in the fair value of the types of collateral for individually evaluated loans are reported as provision (recovery) for credit loss on loans in the period of change. Type of Collateral March 31, 2023 December 31, 2022 (Dollars in Thousands) Real Estate Real Estate Commercial Real Estate $ 1,986 $ 2,106 Commercial and Industrial — — Residential Mortgages 1,212 1,212 Other Consumer — — Construction 2,090 — Other — — Total $ 5,288 $ 3,318 The following tables present activity in the ACL for the periods presented: Three Months Ended March 31, 2023 (Dollars in Thousands) Commercial Real Estate Commercial and Industrial Residential Mortgage Other Consumer Construction Other Total Loans Allowance for Credit Losses on Loans: Balance at Beginning of Period $ 17,992 $ 3,980 $ 8,891 $ 1,329 $ 6,942 $ 54,718 $ 93,852 Provision (Recovery) for Credit Losses on Loans 603 (448) 1,530 430 564 (1,264) 1,415 Charge-offs — (1) (3) (657) — — (661) Recoveries — — 1 87 — — 88 Net Charge-offs — (1) (2) (570) — — (573) Balance at End of Period $ 18,595 $ 3,531 $ 10,419 $ 1,189 $ 7,506 $ 53,454 $ 94,694 Three Months Ended March 31, 2022 (Dollars in Thousands) Commercial Real Estate Commercial and Industrial Residential Mortgage Other Consumer Construction Other Total Loans Allowance for Credit Losses on Loans: Balance at Beginning of Period $ 17,297 $ 4,111 $ 4,368 $ 1,493 $ 6,939 $ 61,731 $ 95,939 Provision (Recovery) for Credit Losses on Loans 221 (529) 169 303 466 — 630 Charge-offs — — (17) (435) — — (452) Recoveries — 1 — 109 149 — 259 Net Recoveries / (Charge-offs) — 1 (17) (326) 149 — (193) Balance at End of Period $ 17,518 $ 3,583 $ 4,520 $ 1,470 $ 7,554 $ 61,731 $ 96,376 |
