5: ALLOWANCE FOR LOAN LOSSES The allowance for loan loss is maintained at a level to absorb probable losses inherent in the loan portfolio. This allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off, and reduced by charge-offs on loans. The following is a summary of the changes in the allowances for loan losses for three years: (In thousands) 2021 2020 _ 2019 _ Balance at beginning of year $91,809 73,658 66,20 Allowances from purchase transactions 1,851 10,980 3,647 Provisions charged to operations 14,400 11,800 9,000 Subtotal 108,060 96,438 78,848 harge-offs (11,575) (6,816) (7,406 ecoveries 1,822 2,187 2,216 Net charge-offs (9,753) (4,629) (5,190 ialance at end of year $98,307 91,809 73,658