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LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables)
12 Months Ended
Dec. 31, 2013
Text Block [Abstract]  
Schedule of Types of Loans in Loan Portfolio

The loan portfolio consists of various types of loans made principally to borrowers located within the states of Texas and Oklahoma and is classified by major type as follows:

 

     December 31,  
     2013      2012  
     (Dollars in thousands)  

Residential mortgage loans held for sale

   $ 2,210       $ 10,433   
  

 

 

    

 

 

 

Commercial and industrial

     1,279,777         771,114   

Real estate:

     

Construction, land development and other land loans

     865,511         550,768   

1-4 family residential (including home equity)

     2,129,510         1,432,133   

Commercial real estate (including multi-family residential)

     2,753,797         1,990,642   

Farmland

     332,648         211,156   

Agriculture

     198,610         74,481   

Consumer and other (net of unearned discount)

     213,158         139,213   
  

 

 

    

 

 

 

Total loans held for investment

     7,773,011         5,169,507   
  

 

 

    

 

 

 

Total

   $ 7,775,221       $ 5,179,940   
  

 

 

    

 

 

 
Schedule of Contractual Maturities of Loans

The contractual maturity ranges of the commercial and industrial, construction, land development and other land loans, 1-4 family residential (including home equity), commercial real estate (including multi-family residential), agriculture (including farmland) and consumer and other portfolios and the amount of such loans with predetermined interest rates and floating rates in each maturity range as of December 31, 2013 are summarized in the following table. Contractual maturities are based on contractual amounts outstanding and do not include loan purchase discounts of $133.3 million or loans held for sale of $2.2 million at December 31, 2013:

 

    One Year
or Less
    Through
Five Years
    After Five
Years
    Total  
    (Dollars in thousands)  

Commercial and industrial

  $ 505,151      $ 472,113      $ 335,844      $ 1,313,108   

Real estate:

       

Construction, land development and other land loans

    280,838        172,245        421,675        874,758   

1-4 family residential (includes home equity)

    30,352        134,488        1,976,539        2,141,379   

Commercial (includes multi-family residential)

    113,892        498,971        2,209,798        2,822,661   

Agriculture (includes farmland)

    172,535        72,384        294,350        539,269   

Consumer and other

    68,314        95,742        51,072        215,128   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,171,082      $ 1,445,943      $ 5,289,278      $ 7,906,303   
 

 

 

   

 

 

   

 

 

   

 

 

 

Loans with a predetermined interest rate

  $ 373,155      $ 721,115      $ 2,356,926      $ 3,451,196   

Loans with a floating interest rate

    797,927        724,828        2,932,352        4,455,107   
 

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 1,171,082      $ 1,445,943      $ 5,289,278      $ 7,906,303   
 

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Activity with Respect to Related-Party Loans

An analysis of activity with respect to these related-party loans is as follows:

 

     December 31,  
         2013             2012      
     (Dollars in thousands)  

Beginning balance on January 1

   $ 6,682      $ 9,809   

New loans and reclassified related loans

     306        967   

Repayments

     (801     (4,094
  

 

 

   

 

 

 

Ending balance

   $ 6,187      $ 6,682   
  

 

 

   

 

 

 

Schedule of Past Due Loans with Age Analysis, Segregated by Class of Loans

An aging analysis of past due loans, segregated by class of loans, was as follows:

 

    December 31, 2013  
    Loans Past Due and Still Accruing                    
          90 or More     Total Past     Nonaccrual     Current     Total  
    30-89 Days     Days     Due Loans     Loans     Loans     Loans  
    (Dollars in thousands)  

Construction, land development and other land loans

  $ 6,258      $ 2      $ 6,260      $ 386      $ 858,865      $ 865,511   

Agriculture and agriculture real estate (includes farmland)

    5,634        218        5,852        62        525,344        531,258   

1-4 family (includes home equity)(1)

    8,684        2,012        10,696        3,086        2,117,938        2,131,720   

Commercial real estate (includes multi-family residential)

    8,163        1,752        9,915        4,333        2,739,549        2,753,797   

Commercial and industrial

    9,552        933        10,485        2,208        1,267,084        1,279,777   

Consumer and other

    1,344        30        1,374        156        211,628        213,158   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 39,635      $ 4,947      $ 44,582      $ 10,231      $ 7,720,408      $ 7,775,221   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    December 31, 2012  
    Loans Past Due and Still Accruing                    
          90 or More     Total Past     Nonaccrual     Current     Total  
    30-89 Days     Days     Due Loans     Loans     Loans     Loans  
    (Dollars in thousands)  

Construction, land development and other land loans

  $ 3,863      $ —        $ 3,863      $ 1,170      $ 545,735      $ 550,768   

Agriculture and agriculture real estate (includes farmland)

    310        21        331        396        284,910        285,637   

1-4 family (includes home equity)(1)

    2,307        310        2,617        1,598        1,438,351        1,442,566   

Commercial real estate (includes multi-family residential)

    9,163        —          9,163        —          1,981,479        1,990,642   

Commercial and industrial

    4,843        —          4,843        1,469        764,802        771,114   

Consumer and other

    856        —          856        749        137,608        139,213   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 21,342      $ 331      $ 21,673      $ 5,382      $ 5,152,885      $ 5,179,940   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes $2,210 and $10,433 of residential mortgage loans held for sale at December 31, 2013 and December 31, 2012, respectively.
Schedule of Nonperforming Assets

The following table presents information regarding nonperforming assets at the dates indicated:

 

     December 31,  
     2013     2012     2011     2010     2009  
     (Dollars in thousands)  

Nonaccrual loans

   $ 10,231      $ 5,382      $ 3,578      $ 4,439      $ 6,079   

Accruing loans 90 or more days past due

     4,947        331        —          189        2,332   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming loans

     15,178        5,713        3,578        4,628        8,411   

Repossessed assets

     27        68        146        161        116   

Other real estate

     7,299        7,234        8,328        11,053        7,829   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total nonperforming assets

   $ 22,504      $ 13,015      $ 12,052      $ 15,842      $ 16,356   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Nonperforming assets to total loans and other real estate

     0.29     0.25     0.32     0.45     0.48 %
Schedule of Impaired Loans

Year-end impaired loans are set forth in the following tables. No interest income was recognized on impaired loans subsequent to their classification as impaired. The average recorded investment presented in the table below is reported on a year-to-date basis.

 

     December 31, 2013  
     Recorded Investment      Unpaid Principal
Balance
     Related
Allowance
     Average Recorded
Investment
 
     (Dollars in thousands)  

With no related allowance recorded:

           

Construction, land development and other land loans

   $ 277       $ 289       $ —         $ 711   

Agriculture and agriculture real estate (includes farmland)

     14         57         —           46   

1-4 family (includes home equity)

     584         664         —           538   

Commercial real estate (includes multi-family residential)

     2,490         3,798         —           1,470   

Commercial and industrial

     103         122         —           95   

Consumer and other

     15         16         —           13   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     3,483         4,946         —           2,873   
  

 

 

    

 

 

    

 

 

    

 

 

 

With an allowance recorded:

           

Construction, land development and other land loans

     —           —           —           —     

Agriculture and agriculture real estate (includes farmland)

     21         27         18         28   

1-4 family (includes home equity)

     2,519         2,548         890         1,759   

Commercial real estate (includes multi-family residential)

     1,613         1,615         445         2,032   

Commercial and industrial

     1,111         1,192         1,029         1,077   

Consumer and other

     95         113         77         81   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     5,359         5,495         2,459         4,977   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total:

           

Construction, land development and other land loans

     277         289         —           711   

Agriculture and agriculture real estate (includes farmland)

     35         84         18         74   

1-4 family (includes home equity)

     3,103         3,212         890         2,297   

Commercial real estate (includes multi-family residential)

     4,103         5,413         445         3,502   

Commercial and industrial

     1,214         1,314         1,029         1,172   

Consumer and other

     110         129         77         94   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 8,842       $ 10,441       $ 2,459       $ 7,850   
  

 

 

    

 

 

    

 

 

    

 

 

 
     December 31, 2012  
     Recorded Investment      Unpaid Principal
Balance
     Related
Allowance
     Average Recorded
Investment
 
     (Dollars in thousands)  

With no related allowance recorded:

           

Construction, land development and other land loans

   $ 1,144       $ 1,175       $ —         $ 368   

Agriculture and agriculture real estate (includes farmland)

     77         77         —           34   

1-4 family (includes home equity)

     491         522         —           381   

Commercial real estate (includes multi-family residential)

     450         476         —           676   

Commercial and industrial

     87         89         —           75   

Consumer and other

     10         10         —           3   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,259         2,349         —           1,537   
  

 

 

    

 

 

    

 

 

    

 

 

 

With an allowance recorded:

           

Construction, land development and other land loans

     —           —           —           451   

Agriculture and agriculture real estate (includes farmland)

     34         41         29         45   

1-4 family (includes home equity)

     999         1,017         273         720   

Commercial real estate (includes multi-family residential)

     2,450         2,451         610         2,725   

Commercial and industrial

     1,043         1,079         1,002         782   

Consumer and other

     66         81         67         21   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     4,592         4,669         1,981         4,744   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total:

           

Construction, land development and other land loans

     1,144         1,175         —           819   

Agriculture and agriculture real estate (includes farmland)

     111         118         29         79   

1-4 family (includes home equity)

     1,490         1,539         273         1,101   

Commercial real estate (includes multi-family residential)

     2,900         2,927         610         3,401   

Commercial and industrial

     1,130         1,168         1,002         857   

Consumer and other

     76         91         67         24   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 6,851       $ 7,018       $ 1,981       $ 6,281   
  

 

 

    

 

 

    

 

 

    

 

 

 

Schedule Showing Risk Grades and Classified Loans by Class of Loan

The following table presents risk grades and classified loans by class of loan at December 31, 2013. Impaired loans according to the new loan grade policy include loans in risk grades 7, 8 and 9.

 

    Construction,
Land
Development
and other
land loans
    Agriculture and
Agriculture
Real Estate
(includes
Farmland)
    1-4 Family
(includes
Home Equity)(1)
    Commercial
Real Estate
(includes Multi-
Family
Residential)
    Commercial
and Industrial
    Consumer and
Other
    Total  
    (Dollars in thousands)  

Grade 1

  $ —        $ 5,225      $ —        $ —        $ 50,131      $ 31,362      $ 86,718   

Grade 2

    —          —          —          —          —          —          —     

Grade 3

    858,712        520,921        2,113,698        2,697,664        1,202,604        181,406        7,575,005   

Grade 4

    —          —          —          —          —          —          —     

Grade 5

    1,141        3,427        6,337        10,798        17,179        146        39,028   

Grade 6

    1,616        1,043        4,504        14,316        2,423        134        24,036   

Grade 7

    277        35        3,093        4,103        1,214        110        8,832   

Grade 8

    —          —          10        —          —          —          10   

Grade 9

    —          —          —          —          —          —          —     

PCI Loans(2)

    3,765        607        4,078        26,916        6,226        —          41,592   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 865,511      $ 531,258      $ 2,131,720      $ 2,753,797      $ 1,279,777      $ 213,158      $ 7,775,221   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes $2.2 million of residential mortgage loans held for sale at December 31, 2013.
(2) Of the total PCI loans, $17.6 million were classifed as substandard at December 31, 2013.

The following table presents risk grades and classified loans by class of loan at December 31, 2012. Impaired loans according to the loan policy in effect in 2012 include loans in risk grades 5, 6 and 7.

 

    Construction,
Land
Development
and other
land loans
    Agriculture and
Agriculture
Real Estate
(includes
Farmland)
    1-4 Family
(includes
Home Equity)(1)
    Commercial
Real Estate
(includes Multi-
Family
Residential)
    Commercial
and Industrial
    Consumer and
Other
    Total  
    (Dollars in thousands)  

Grade 1

  $ 476      $ 4,195      $ 515      $ —        $ 53,965      $ 38,789      $ 97,940   

Grade 2

    537,340        277,333        1,431,095        1,945,319        702,587        100,163        4,993,837   

Grade 3

    7,250        2,024        4,947        11,760        8,926        —          34,907   

Grade 4

    4,256        1,694        4,303        11,711        1,385        176        23,525   

Grade 5

    1,144        111        1,477        2,900        1,130        76        6,838   

Grade 6

    —          —          13        —          —          —          13   

Grade 7

    —          —          —          —          —          —          —     

PCI Loans

    302        280        216        18,952        3,121        9        22,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 550,768      $ 285,637      $ 1,442,566      $ 1,990,642      $ 771,114      $ 139,213      $ 5,179,940   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Includes $10.4 million of residential mortgage loans held for sale at December 31, 2012.
Schedule of Recorded Investment in Loans and Activity in Allowance for Credit Losses by Portfolio Segment

The following table details the recorded investment in loans, excluding $2.2 million and $10.4 million of residential mortgage loans held for sale, and activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2013 and 2012, respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

 

    Construction,
Land
Development
and other
land loans
    Agriculture
and
Agriculture
Real Estate
(includes
Farmland)
    1-4 Family
(includes Home
Equity)
    Commercial
Real Estate
(includes
Multi-Family
Residential)
    Commercial  and
Industrial
    Consumer and
Other
    Total  
    (Dollars in thousands)  

Allowance for credit losses:

             

Balance January 1, 2013

  $ 11,909      $ 764      $ 13,942      $ 19,607      $ 5,777      $ 565      $ 52,564   

Provision for credit losses

    2,470        399        3,277        5,189        2,714        3,191        17,240   

Charge-offs

    (271     (48     (211     (894     (672     (3,397     (5,493

Recoveries

    245        114        38        933        348        1,293        2,971   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net charge-offs

    (26     66        (173     39        (324     (2,104     (2,522
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2013

  $ 14,353      $ 1,229      $ 17,046      $ 24,835      $ 8,167      $ 1,652      $ 67,282   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for credit losses related to:

             

December 31, 2013

             

Individually evaluated for impairment

  $ —        $ 18      $ 890      $ 445      $ 1,029      $ 77      $ 2,459   

Collectively evaluated for impairment

    14,353        1,211        16,156        24,390        7,138        1,575        64,823   

PCI loans

    —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total allowance for credit losses

  $ 14,353      $ 1,229      $ 17,046      $ 24,835      $ 8,167      $ 1,652      $ 67,282   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recorded investment in loans:

             

December 31, 2013

             

Individually evaluated for impairment

  $ 277      $ 35      $ 3,103      $ 4,103      $ 1,214      $ 110      $ 8,842   

Collectively evaluated for impairment

    861,469        530,616        2,122,329        2,722,778        1,272,337        213,048        7,722,577   

PCI loans

    3,765        607        4,078        26,916        6,226        —          41,592   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans evaluated for impairment

  $ 865,511      $ 531,258      $ 2,129,510      $ 2,753,797      $ 1,279,777      $ 213,158      $ 7,773,011   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for credit losses:

             

Balance January 1, 2012

  $ 12,094      $ 511      $ 12,645      $ 21,460      $ 3,826      $ 1,058      $ 51,594   

Provision for credit losses

    1,190        290        1,754        273        1,810        783        6,100   

Charge-offs

    (1,392     (82     (569     (2,294     (674     (2,885     (7,896

Recoveries

    17        45        112        168        815        1,609        2,766   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net charge-offs

    (1,375     (37     (457     (2,126     141        (1,276     (5,130
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance December 31, 2012

  $ 11,909      $ 764      $ 13,942      $ 19,607      $ 5,777      $ 565      $ 52,564   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Allowance for credit losses related to:

             

December 31, 2012

             

Individually evaluated for impairment

  $ —        $ 29      $ 273      $ 610      $ 1,002      $ 67      $ 1,981   

Collectively evaluated for impairment

    11,909        735        13,669        18,997        4,775        498        50,583   

PCI loans

    —          —          —          —          —          —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total allowance for credit losses

  $ 11,909      $ 764      $ 13,942      $ 19,607      $ 5,777      $ 565      $ 52,564   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Recorded investment in loans:

             

December 31, 2012

             

Individually evaluated for impairment

  $ 1,144      $ 111      $ 1,490      $ 2,900      $ 1,130      $ 76      $ 6,851   

Collectively evaluated for impairment

    549,322        285,246        1,430,427        1,968,790        766,863        139,128        5,139,776   

PCI loans

    302        280        216        18,952        3,121        9        22,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans evaluated for impairment

  $ 550,768      $ 285,637      $ 1,432,133      $ 1,990,642      $ 771,114      $ 139,213      $ 5,169,507   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Schedule of activity in allowance for credit losses

An analysis of activity in the allowance for credit losses for the year ended December 31, 2011 is as follows (dollars in thousands):

 

Balance at beginning of year

   $ 51,584   

Addition—provision charged to operations

     5,200   

Charge-offs and recoveries:

  

Loans charged-off

     (6,850

Loan recoveries

     1,660   
  

 

 

 

Net charge-offs

     (5,190
  

 

 

 

Balance at end of year

   $ 51,594   
  

 

 

 
Schedule of Loans Modified in Troubled Debt Restructuring

The following table presents information regarding the recorded balance at December 31, 2013 and 2012 of loans modified in a troubled debt restructuring during the years ended December 31, 2013 and 2012:

 

    As of December 31,  
    2013     2012  
    Number of
Contracts
    Recorded
Investment
at Date of
Restructure
    Recorded
Investment
at Year-End
    Number of
Contracts
    Recorded
Investment
at Date of
Restructure
    Recorded
Investment
at Year-End
 
    (Dollars in thousands)  

Troubled Debt Restructurings

           

Construction, land development and other land loans

    1      $ 251      $ 236        —        $ —        $ —     

Agriculture and agriculture real estate

    —          —          —          —          —          —     

1-4 Family (includes home equity)

    —          —          —          —          —          —     

Commercial real estate (commercial mortgage and multi-family)

    1        450        450        1        52        51   

Commercial and industrial

    1        15        14        4        1,007        951   

Consumer and other

    —          —          —          1        64        63   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    3      $ 716      $ 700        6      $ 1,123      $ 1,065