ALLOWANCE FOR CREDIT LOSSES | ALLOWANCE FOR CREDIT LOSSES We maintain an ACL at a level determined to be adequate to absorb estimated expected credit losses within the loan portfolio over the contractual life of an instrument that considers our historical loss experience, current conditions and forecasts of future economic conditions as of the balance sheet date. We develop and document a systematic ACL methodology based on the following portfolio segments: 1) Commercial Real Estate, or CRE, 2) Commercial and Industrial, or C&I, 3) Commercial Construction, 4) Business Banking, 5) Consumer Real Estate and 6) Other Consumer. The following are key risks within each portfolio segment: CRE —Loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. Operations of the individual projects and 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 and the business prospects of the lessee, if the project is not owner-occupied. C&I —Loans 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 company 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 company. Collateral for these types of loans often does not have sufficient value in a distressed or liquidation scenario to satisfy the outstanding debt. Commercial Construction —Loans 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/development 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. Business Banking —Commercial purpose loans made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards that meet small business market customers’ needs. The business banking portfolio is monitored by utilizing a standard and closely managed process focusing on behavioral and performance criteria. The condition of the local economy is an important indicator of risk, but there are also more specific risks depending on the collateral type and business. Consumer Real Estate —Loans secured by first and second liens such as home equity loans, home equity lines of credit and 1-4 family residential mortgages, including purchase money mortgages. 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 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 made to individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. This segment includes auto loans, 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. Management monitors various credit quality indicators for the commercial, business banking and consumer loan portfolios, including changes in risk ratings, nonperforming status and delinquency on a monthly basis. 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 within the pass rating generally have a lower risk of loss than loans risk rated as special mention or substandard. Our risk ratings are consistent with regulatory guidance and are as follows: Pass —The loan is currently performing and is of high quality. Special Mention —A special mention loan has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects or in the strength of our credit position at some future date. Substandard —A substandard loan is not adequately protected by the net worth and/or paying capacity of the borrower or by the collateral pledged, if any. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. These loans are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified doubtful have all the weaknesses inherent in those 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. The following tables presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of the dates presented: September 30, 2021 Risk Rating (dollars in thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Revolving-Term Total Commercial real estate Pass $ 255,876 $ 323,514 $ 443,487 $ 341,387 $ 224,258 $ 716,460 $ 42,326 — $ 2,347,308 Special mention — 1,368 32,780 4,422 38,966 97,322 — 174,858 Substandard — 445 16,812 19,320 18,673 123,332 1,500 180,082 Doubtful — — 532 — — — — — 532 Total commercial real estate 255,876 325,327 493,611 365,129 281,897 937,114 43,826 — 2,702,780 Commercial and industrial Pass 401,200 156,589 145,923 98,137 43,019 133,945 428,398 — 1,407,211 Special mention 49 2,927 1,283 3,166 72 1,934 10,667 20,098 Substandard 5,196 — 19,180 1,374 5,258 5,532 5,017 41,557 Doubtful — — 9,332 — — — — — 9,332 Total commercial and industrial 406,445 159,516 175,718 102,677 48,349 141,411 444,082 1,478,198 Commercial construction Pass 100,774 134,440 172,508 33,903 996 4,298 21,714 — 468,633 Special mention — — — — — 4,491 — 4,491 Substandard — 2,149 7,416 — — 3,235 — 12,800 Doubtful — — — — — — — — — Total commercial construction 100,774 136,589 179,924 33,903 996 12,024 21,714 485,924 Business banking Pass 173,154 114,831 152,423 117,529 81,934 316,445 103,162 450 1,059,928 Special mention 113 153 890 1,406 935 6,265 199 121 10,082 Substandard 46 71 1,720 3,292 2,036 21,337 978 635 30,115 Doubtful — — — — — — — — — Total business banking 173,313 115,055 155,033 122,227 84,905 344,047 104,339 1,206 1,100,125 Consumer real estate Pass 89,026 107,534 94,583 58,622 42,789 242,252 435,213 23,088 1,093,107 Special mention — — — — — 2,163 — 2,163 Substandard — — 208 1,765 1,368 4,868 709 1,290 10,208 Doubtful — — — — — — — — — Total consumer real estate 89,026 107,534 94,791 60,387 44,157 249,283 435,922 24,378 1,105,478 Other consumer Pass 9,833 10,852 8,470 3,852 1,442 2,888 50,725 1,113 89,175 Special mention — — — — — — — — — Substandard — 52 105 150 368 5,930 255 1,547 8,407 Doubtful — — — — — — — — — Total other consumer 9,833 10,904 8,575 4,002 1,810 8,818 50,980 2,660 97,582 Pass 1,029,863 847,760 1,017,394 653,430 394,438 1,416,288 1,081,538 24,651 6,465,362 Special mention 162 4,448 34,953 8,994 39,973 112,175 10,866 121 211,692 Substandard 5,242 2,717 45,441 25,901 27,703 164,234 8,459 3,472 283,169 Doubtful — — 9,864 — — — — — 9,864 Total $ 1,035,267 $ 854,925 $ 1,107,652 $ 688,325 $ 462,114 $ 1,692,697 $ 1,100,863 $ 28,244 $ 6,970,087 December 31, 2020 Risk Rating (dollars in thousands) 2020 2019 2018 2017 2016 2015 and Prior Revolving Revolving-Term Total Commercial real estate Pass $ 334,086 $ 422,800 $ 394,963 $ 277,724 $ 307,321 $ 615,217 $ 46,330 $ — $ 2,398,441 Special mention — 35,499 10,200 22,502 55,174 75,022 — — 198,397 Substandard — 17,259 12,781 19,914 50,700 83,792 1,500 — 185,946 Doubtful — 645 — — 1,989 6,529 — — 9,163 Total commercial real estate 334,086 476,203 417,944 320,140 415,184 780,560 47,830 — 2,791,947 Commercial and industrial Pass 454,131 199,453 140,049 68,607 27,645 206,782 383,082 — 1,479,749 Special mention 3,697 8,211 2,628 697 768 1,046 23,527 — 40,574 Substandard — 7,793 2,613 8,544 75 13,781 2,022 — 34,828 Doubtful — — — 4,401 — — — — 4,401 Total commercial and industrial 457,828 215,457 145,290 82,249 28,488 221,609 408,631 — 1,559,552 Commercial construction Pass 131,235 224,794 59,649 2,420 6,346 4,555 12,778 — 441,777 Special mention 1,578 2,533 3,886 — — 8,593 — — 16,590 Substandard — 3,580 — 501 — 3,629 — — 7,710 Doubtful — — — — — — — — — Total commercial construction 132,813 230,907 63,535 2,921 6,346 16,777 12,778 — 466,077 Business banking Pass 296,254 154,335 123,207 86,552 77,238 266,042 103,571 291 1,107,490 Special mention — 1,060 1,147 1,602 1,084 6,866 637 123 12,519 Substandard 103 1,078 3,896 3,209 3,880 25,871 1,341 680 40,058 Doubtful — — — — — — — — — Total business banking 296,357 156,473 128,250 91,363 82,202 298,779 105,549 1,094 1,160,067 Consumer real estate Pass 120,736 122,171 67,700 63,653 73,805 243,939 438,888 22,667 1,153,559 Special mention — — 1,489 — — 150 132 — 1,771 Substandard — 373 742 1,480 2,449 6,958 — — 12,002 Doubtful — — — — — — — — — Total consumer real estate 120,736 122,544 69,931 65,133 76,254 251,047 439,020 22,667 1,167,332 Other consumer Pass 18,849 13,162 6,784 3,395 2,082 687 26,647 2,767 74,373 Special mention — — — — — — — — — Substandard 15 — — — — 3,367 744 2,386 6,512 Doubtful — — — — — — — — — Total other consumer 18,864 13,162 6,784 3,395 2,082 4,054 27,391 5,153 80,885 Pass 1,355,292 1,136,716 792,352 502,350 494,436 1,337,222 1,011,297 25,724 6,655,389 Special Mention 5,274 47,302 19,350 24,802 57,026 91,677 24,296 124 269,851 Substandard 118 30,083 20,032 33,648 57,105 137,398 5,606 3,066 287,056 Doubtful — 645 — 4,401 1,989 6,529 — — 13,564 Total $ 1,360,684 $ 1,214,746 $ 831,734 $ 565,201 $ 610,556 $ 1,572,826 $ 1,041,199 $ 28,914 $ 7,225,860 We monitor the delinquent status of the commercial and consumer portfolios on a monthly basis. Loans are considered nonperforming when interest and principal are 90 days or more past due or management has determined that a material deterioration in the borrower’s financial condition exists. The risk of loss is generally highest for nonperforming loans. The following tables presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of September 30, 2021 and December 31, 2020: September 30, 2021 (dollars in thousands) 2021 2020 2019 2018 2017 2016 and Prior Revolving Revolving-Term Total Commercial real estate Performing $ 255,876 $ 325,327 $ 477,766 $ 362,382 $ 275,458 $ 907,348 $ 43,826 $ — $ 2,647,983 Nonperforming — — 15,845 2,747 6,439 29,766 — — 54,797 Total commercial real estate 255,876 325,327 493,611 365,129 281,897 937,114 43,826 — 2,702,780 Commercial and industrial Performing 401,249 159,516 153,731 102,310 44,963 141,201 441,319 — 1,444,289 Nonperforming 5,196 21,987 367 3,386 210 2,763 — 33,909 Total commercial and industrial 406,445 159,516 175,718 102,677 48,349 141,411 444,082 1,478,198 Commercial construction Performing 100,774 136,589 176,567 33,903 996 11,328 21,714 — 481,871 Nonperforming — — 3,357 — — 696 — — 4,053 Total commercial construction 100,774 136,589 179,924 33,903 996 12,024 21,714 485,924 Business banking Performing 173,267 115,055 154,639 120,811 84,187 336,486 104,310 1,149 1,089,904 Nonperforming 46 — 394 1,416 718 7,561 29 57 10,221 Total business banking 173,313 115,055 155,033 122,227 84,905 344,047 104,339 1,206 1,100,125 Consumer real estate Performing 89,026 107,482 94,501 60,140 43,392 244,339 434,893 23,562 1,097,335 Nonperforming — 52 290 247 765 4,944 1,029 816 8,143 Total consumer real estate 89,026 107,534 94,791 60,387 44,157 249,283 435,922 24,378 1,105,478 Other consumer Performing 9,833 10,904 8,575 3,813 1,810 8,818 50,980 2,660 97,393 Nonperforming — — — 189 — — — — 189 Total other consumer 9,833 10,904 8,575 4,002 1,810 8,818 50,980 2,660 97,582 Performing 1,030,025 854,873 1,065,779 683,359 450,806 1,649,520 1,097,042 27,371 6,858,775 Nonperforming (1) 5,242 52 41,873 4,966 11,308 43,177 3,821 873 111,312 Total $ 1,035,267 $ 854,925 $ 1,107,652 $ 688,325 $ 462,114 $ 1,692,697 $ 1,100,863 $ 28,244 $ 6,970,087 (1) Included in nonperforming commercial loans is $1.7 million of loans held for sale with $0.3 million in 2010, $0.9 million in 2012 and $0.5 million in 2013. December 31, 2020 (dollars in thousands) 2020 2019 2018 2017 2016 2015 and Prior Revolving Revolving-Term Total Commercial real estate Performing $ 334,086 $ 459,799 $ 417,944 $ 313,465 $ 394,972 $ 722,781 $ 47,830 $ — $ 2,690,877 Nonperforming — 16,404 — 6,675 20,212 57,779 — — 101,070 Total commercial real estate 334,086 476,203 417,944 320,140 415,184 780,560 47,830 — 2,791,947 Commercial and industrial Performing 457,828 214,144 143,706 69,411 28,426 220,701 408,351 — 1,542,567 Nonperforming — 1,313 1,584 12,838 62 908 280 — 16,985 Total commercial and industrial 457,828 215,457 145,290 82,249 28,488 221,609 408,631 — 1,559,552 Commercial construction Performing 132,813 230,907 63,535 2,921 6,346 16,393 12,778 — 465,693 Nonperforming — — — — — 384 — — 384 Total commercial construction 132,813 230,907 63,535 2,921 6,346 16,777 12,778 — 466,077 Business Banking Performing 296,327 156,164 126,432 90,414 80,106 286,970 105,494 1,037 1,142,944 Nonperforming 30 309 1,818 949 2,096 11,809 55 57 17,123 Total business banking 296,357 156,473 128,250 91,363 82,202 298,779 105,549 1,094 1,160,067 Consumer real estate Performing 120,736 122,315 69,225 63,647 74,690 245,331 438,701 21,571 1,156,216 Nonperforming — 229 706 1,486 1,564 5,716 319 1,096 11,116 Total consumer real estate 120,736 122,544 69,931 65,133 76,254 251,047 439,020 22,667 1,167,332 Other consumer Performing 18,864 13,162 6,784 3,395 2,082 3,958 27,391 5,153 80,789 Nonperforming — — — — — 96 — — 96 Total other consumer 18,864 13,162 6,784 3,395 2,082 4,054 27,391 5,153 80,885 Performing 1,360,654 1,196,492 827,626 543,253 586,622 1,496,134 1,040,545 27,760 7,079,086 Nonperforming 30 18,254 4,108 21,948 23,934 76,692 654 1,154 146,774 Total $ 1,360,684 $ 1,214,746 $ 831,734 $ 565,201 $ 610,556 $ 1,572,826 $ 1,041,199 $ 28,914 $ 7,225,860 The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented: September 30, 2021 (dollars in thousands) Current 30-59 Days 60-89 Days Non - performing (2) Total Past Total Loans Commercial real estate $ 2,647,983 $ — $ — $ 54,797 $ 54,797 2,702,780 Commercial and industrial 1,444,289 — — 33,909 33,909 1,478,198 Commercial construction 481,871 — — 4,053 4,053 485,924 Business banking 1,088,013 970 921 10,221 12,112 1,100,125 Consumer real estate 1,095,557 833 945 8,143 9,921 1,105,478 Other consumer 97,151 219 23 189 431 97,582 Total (1) $ 6,854,864 $ 2,022 $ 1,889 $ 111,312 $ 115,223 $ 6,970,087 (1) We had 42 loans that were modified totaling $58.9 million under the CARES Act at September 30, 2021. These customers were not considered past due as a result of their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Due to the modifications, this delinquency table may not accurately reflect the credit risk associated with these loans. (2) Included in nonperforming commercial loans is $1.7 million of loans held for sale. December 31, 2020 (dollars in thousands) Current 30-59 Days 60-89 Days Past Due 90+ Days Still Accruing (2) Non - performing Total Past Total Loans Commercial real estate $ 2,690,877 $ — $ — $ — $ 101,070 $ 101,070 $ 2,791,947 Commercial and industrial 1,542,567 — — — 16,985 16,985 1,559,552 Commercial construction 462,094 19 3,580 — 384 3,983 466,077 Business banking 1,140,581 1,614 379 371 17,122 19,486 1,160,067 Consumer real estate 1,153,028 1,087 1,968 132 11,117 14,304 1,167,332 Other consumer 80,583 168 37 — 96 302 80,885 Total (1) $ 7,069,730 $ 2,888 $ 5,965 $ 503 $ 146,774 $ 156,130 $ 7,225,860 (1) We had 52 loans that were modified totaling $195.6 million under the CARES Act at December 31, 2020. These customers were not considered past due as a result of their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Due to the modification program, this delinquency table may not accurately reflect the credit risk associated with these loans. (2) Represents acquired loans that were recorded at fair value at the acquisition date and remain performing at December 31, 2020. The following table presents loans on nonaccrual status by class of loan: September 30, 2021 September 30, 2021 For the three and nine months ended (dollars in thousands) Beginning of Period Nonaccrual End of Period Nonaccrual (2) Nonaccrual With No Related Allowance Interest Income Recognized on Nonaccrual (1) Interest Income Recognized on Nonaccrual (1) Commercial real estate $ 101,070 $ 54,797 $ 47,730 $ 493 $ 556 Commercial and industrial 16,985 33,909 12,566 6 88 Commercial construction 384 4,053 3,357 — — Business banking 17,122 10,221 1,492 57 333 Consumer real estate 11,117 8,143 — 86 405 Other consumer 96 189 — — 1 Total $ 146,774 $ 111,312 $ 65,145 $ 642 $ 1,383 (1) Represents only cash payments received and applied to interest on nonaccrual loans. (2) Included in nonperforming commercial loans is $1.7 million of loans held for sale. . December 31, 2020 December 31, 2020 For the twelve months ended (dollars in thousands) Beginning of Period Nonaccrual End of Period Nonaccrual Nonaccrual With No Related Allowance Past Due 90+ Days Still Accruing Interest Income Recognized on Nonaccrual (1) Commercial real estate $ 25,356 $ 101,070 $ 60,401 $ — $ 22 Commercial and industrial 10,911 16,985 6,436 — 101 Commercial construction 737 384 285 — — Business banking 9,863 17,122 3,890 371 275 Consumer real estate 6,063 11,117 398 132 423 Other consumer 1,127 96 — — 4 Total $ 54,057 $ 146,774 $ 71,410 $ 503 $ 826 (1) Represents only cash payments received and applied to interest on nonaccrual loans. The following tables present collateral-dependent loans by class of loan as of the dates presented: September 30, 2021 Type of Collateral (dollars in thousands) Real Estate Business Investment/Cash Other Commercial real estate $ 51,006 $ — $ — $ — Commercial and industrial 272 13,738 — 21,730 Commercial construction 6,057 — — — Business banking 1,714 1,424 — — Consumer real estate — — — — Total $ 59,049 $ 15,162 $ — $ 21,730 December 31, 2020 Type of Collateral (dollars in thousands) Real Estate Business Investment/Cash Other Commercial real estate $ 100,450 $ — $ — $ — Commercial and industrial 1,040 15,080 — — Commercial construction 3,552 — — — Business banking 3,085 1,619 — 689 Consumer real estate 398 — — — Total $ 108,525 $ 16,699 $ — $ 689 The following tables present activity in the ACL for the periods presented: Three Months Ended September 30, 2021 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 63,186 $ 14,426 $ 5,905 $ 14,756 $ 8,647 $ 2,717 $ 109,636 Provision for credit losses on loans (1) (7,856) 11,599 1,391 (2,689) (80) (63) 2,302 Charge-offs (3,661) (2) (56) (167) (76) (245) (4,207) Recoveries 1 216 2 241 33 123 616 Net (Charge-offs)/Recoveries (3,660) 214 (54) 74 (43) (122) (3,591) Balance at End of Period $ 51,670 $ 26,239 $ 7,242 $ 12,141 $ 8,524 $ 2,532 $ 108,348 (1) Excludes unfunded commitments Three Months Ended September 30, 2020 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 57,730 $ 19,164 $ 8,874 $ 14,404 $ 11,585 $ 2,852 $ 114,609 Provision for credit losses on loans (1) 23,839 (4,155) (1,617) 2,072 (797) (40) 19,302 Charge-offs (10,187) (1,196) — (1,748) (252) (284) (13,667) Recoveries 172 398 1 64 41 78 754 Net (Charge-offs)/Recoveries (10,015) (798) 1 (1,684) (211) (206) (12,913) Balance at End of Period $ 71,554 $ 14,211 $ 7,258 $ 14,792 $ 10,577 $ 2,606 $ 120,998 (1) Excludes unfunded commitments Nine Months Ended September 30, 2021 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 65,656 $ 16,100 $ 7,239 $ 15,917 $ 10,014 $ 2,686 $ 117,612 Provision for credit losses on loans (1) (2,922) 14,552 54 (2,736) (1,335) (1) 7,612 Charge-offs $ (12,030) $ (4,777) $ (56) $ (1,494) $ (422) $ (698) $ (19,477) Recoveries 966 364 5 454 267 545 2,601 Net (Charge-offs)/Recoveries (11,064) (4,413) (51) (1,040) (155) (153) (16,876) Balance at End of Period $ 51,670 $ 26,239 $ 7,242 $ 12,141 $ 8,524 $ 2,532 $ 108,348 (1) Excludes the provision for credit losses for unfunded commitments. Nine Months Ended September 30, 2020 (dollars in thousands) Commercial Commercial and Commercial Business Banking Consumer Other Total Allowance for credit losses on loans: Balance at beginning of period $ 30,577 $ 15,681 $ 7,900 $ — $ 6,337 $ 1,729 $ 62,224 Impact of CECL adoption 4,810 7,853 (3,376) 12,898 4,525 642 27,352 Provision for credit losses on loans (1) 52,185 62,949 2,712 4,197 32 1,489 123,564 Charge-offs (16,229) (72,692) — (2,469) (470) (1,556) (93,416) Recoveries 211 420 22 166 153 302 1,274 Net (Charge-offs)/Recoveries (16,018) (72,272) 22 (2,303) (317) (1,254) (92,142) Balance at End of Period $ 71,554 $ 14,211 $ 7,258 $ 14,792 $ 10,577 $ 2,606 $ 120,998 (1) Excludes unfunded commitments The adoption of ASU 2016-13 resulted in an increase to our ACL of $27.4 million on January 1, 2020. The increase included $8.2 million for S&T legacy loans and $9.3 million for acquired loans from the DNB merger. We also recorded a day one adjustment of $9.9 million primarily related to a C&I relationship that was charged off in the first quarter of 2020. We obtained information on the relationship subsequent to filing our December 31, 2019 Form 10-K, but before the end of the first quarter of 2020. The updated information supported a loss existed at January 1, 2020. The provision for credit losses, which includes a provision for losses on loans and on unfunded commitments, is a charge to earnings to maintain the ACL at a level consistent with management's assessment of expected losses in the loan portfolio at the balance sheet date. The provision for credit losses decreased $14.1 million and $115.6 million to $3.4 million and $8.7 million for the three and nine months ended September 30, 2021 compared to $17.5 million and $124.3 million for the same periods in 2020. The provision for credit losses included $1.1 million and $1.5 million for the reserve for unfunded commitments for the three and nine months ended September 30, 2021. The significant decrease in the provision for credit losses during the three and nine months ended September 30, 2021 was mainly due to the customer fraud in June of 2020 and an improved economic forecast in 2021 compared to 2020. Our economic forecast covers a period of two years and is driven primarily by national unemployment data. The forecasted national unemployment rate improved at September 30, 2021 compared to the same time in 2020. |