Bar Harbor Bankshares(BHB) - 2023 Q2 - Quarterly Report

The Allowance for Credit Losses ("ACL") is comprised of the allowance for loan losses and the allowance for unfunded commitments which is accounted for as a separate liability in other liabilities on our balance sheet. The level of the ACL represents management's estimate of expected credit losses over the expected life of the loans at the balance sheet date. The ACL on unfunded commitments is recognized as a liability (other liabilities on the consolidated balance sheet), with adjustments to the reserve re ...