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Loans Held for Investment and Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Loans Held for Investment and Allowance for Loan Losses Loans Held for Investment and Allowance for Credit Losses on Loans
Loans held for investment are summarized by portfolio segment as follows:
(in thousands)March 31, 2021December 31, 2020
Commercial$8,969,224 $8,861,580 
Energy691,806 766,217 
Mortgage finance(1)9,009,081 9,079,409 
Real estate5,810,590 5,794,624 
Gross loans held for investment(2)24,480,701 24,501,830 
Unearned income (net of direct origination costs)(72,446)(70,970)
Allowance for credit losses on loans(242,484)(254,615)
Total loans held for investment, net(2)$24,165,771 $24,176,245 
(1)    Balances at March 31, 2021 and December 31, 2020 are stated net of $1.0 billion and $1.2 billion of participations sold, respectively.
(2)    Excludes accrued interest receivable of $55.9 million and $56.5 million at March 31, 2021 and December 31, 2020, respectively, that is recorded in accrued interest receivable and other assets on the consolidated balance sheets.
The following table summarizes our gross loans held for investment by year of origination and internally assigned credit grades:
(in thousands)202120202019201820172016 and priorRevolving lines of creditRevolving lines of credit converted to term loansTotal
March 31, 2021
Commercial
(1-7) Pass$341,043 $3,548,075 $602,736 $462,947 $290,409 $318,287 $2,989,607 $44,992 $8,598,096 
(8) Special mention— 4,120 87,653 47,936 19,139 7,276 10,194 12,734 189,052 
(9) Substandard - accruing17,850 1,903 27,269 28,182 10,464 26,775 23,804 7,635 143,882 
(9+) Non-accrual— 7,135 3,254 1,037 5,971 12,912 7,218 667 38,194 
Total commercial$358,893 $3,561,233 $720,912 $540,102 $325,983 $365,250 $3,030,823 $66,028 $8,969,224 
Energy
(1-7) Pass$15,515 $— $— $4,844 $8,893 $29,279 $515,359 $— $573,890 
(8) Special mention— — — — — 10,664 53,299 — 63,963 
(9) Substandard - accruing— — — — — — 24,585 — 24,585 
(9+) Non-accrual10,036 — 8,153 — — 11,179 — — 29,368 
Total energy$25,551 $— $8,153 $4,844 $8,893 $51,122 $593,243 $— $691,806 
Mortgage finance
(1-7) Pass$14,962 $716,845 $951,866 $799,447 $455,911 $6,070,050 $— $— $9,009,081 
(8) Special mention— — — — — — — — — 
(9) Substandard - accruing— — — — — — — — — 
(9+) Non-accrual— — — — — — — — — 
Total mortgage finance$14,962 $716,845 $951,866 $799,447 $455,911 $6,070,050 $— $— $9,009,081 
Real estate
CRE
(1-7) Pass$60,652 $418,403 $935,071 $862,447 $370,347 $554,723 $50,041 $60,805 $3,312,489 
(8) Special mention— 3,475 15,071 34,642 48,234 59,183 — — 160,605 
(9) Substandard - accruing— — 318 47,240 53,504 92,750 — 15,390 209,202 
(9+) Non-accrual— — — 458 — 4,991 — 1,247 6,696 
RBF
(1-7) Pass54,499 164,712 38,505 28,451 1,538 15,351 592,624 — 895,680 
(8) Special mention— — — — — — — — — 
(9) Substandard - accruing— — — — — — — — — 
(9+) Non-accrual— — — — — — — — — 
Other
(1-7) Pass26,932 195,760 149,874 108,258 101,509 183,679 17,412 32,983 816,407 
(8) Special mention— — 6,650 48 — 8,686 — 1,018 16,402 
(9) Substandard - accruing— — — 4,228 14,354 16,238 — — 34,820 
(9+) Non-accrual— — — — 908 8,057 — 14,289 23,254 
Secured by 1-4 family
(1-7) Pass19,857 64,953 61,951 40,974 47,903 89,788 4,535 — 329,961 
(8) Special mention— — — — — 1,770 — — 1,770 
(9) Substandard - accruing— — — — 818 2,268 — — 3,086 
(9+) Non-accrual— — — — — 218 — — 218 
Total real estate$161,940 $847,303 $1,207,440 $1,126,746 $639,115 $1,037,702 $664,612 $125,732 $5,810,590 
Total loans held for investment$561,346 $5,125,381 $2,888,371 $2,471,139 $1,429,902 $7,524,124 $4,288,678 $191,760 $24,480,701 
The following table details activity in the allowance for credit losses on loans. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
(in thousands)CommercialEnergyMortgage
Finance		Real
Estate		Total
Three months ended March 31, 2021
Allowance for credit losses on loans:
Beginning balance$73,061 $84,064 $4,699 $92,791 $254,615 
Provision for credit losses on loans(1,001)(5,852)211 929 (5,713)
Charge-offs2,451 5,732 — — 8,183 
Recoveries1,050 715 — — 1,765 
Net charge-offs (recoveries)1,401 5,017 — — 6,418 
Ending balance$70,659 $73,195 $4,910 $93,720 $242,484 
Three months ended March 31, 2020
Allowance for credit losses on loans:
Beginning balance$102,254 $60,253 $2,265 $30,275 $195,047 
Impact of Current Expected Credit Loss ("CECL") adoption(15,740)24,154 2,031 (1,860)8,585 
Provision for credit losses on loans24,902 66,821 35 3,271 95,029 
Charge-offs20,653 37,730 — — 58,383 
Recoveries257 423 — — 680 
Net charge-offs (recoveries)20,396 37,307 — — 57,703 
Ending balance$91,020 $113,921 $4,331 $31,686 $240,958 
We recorded a $6.0 million negative provision for credit losses for the first quarter of 2021, compared to a provision of $96.0 million for the first quarter of 2020. The decreased provision for credit losses in the first quarter of 2021 as compared to the first quarter of 2020 resulted primarily from a decrease in charge-offs and improvement in the economic outlook as the economy begins to recover from the impacts of the COVID-19 pandemic. We recorded $6.4 million in net charge-offs during the first quarter of 2021, compared to $57.7 million during the first quarter of 2020. Criticized loans totaled $945.1 million at March 31, 2021, compared to $675.9 million at March 31, 2020.
A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent gross loans held for investment by collateral type as follows:
Collateral Type
(in thousands)Real PropertyRolling StockTotal
March 31, 2021
Commercial$— $774 $774 
Real estate
CRE4,619 — 4,619 
Other5,984 — 5,984 
Total collateral-dependent loans held for investment
$10,603 $774 $11,377 
The table below provides an age analysis of our loans held for investment:
(in thousands)30-59 Days
Past Due		60-89 Days
Past Due		90 Days or More Past Due(1)Total Past
Due		Non-accrual loans as of March 31, 2021 (2)CurrentTotalNon-accrual With No Allowance
March 31, 2021
Commercial$15,563 $2,905 $3,885 $22,353 $38,194 $8,908,677 $8,969,224 $15,860 
Energy— — — — 29,368 662,438 691,806 18,189 
Mortgage finance loans
— — — — — 9,009,081 9,009,081 — 
Real estate
CRE
14,939 — 2,238 17,177 6,696 3,665,119 3,688,992 1,849 
RBF
— — — — — 895,680 895,680 — 
Other
105 — — 105 23,254 867,524 890,883 7,864 
Secured by 1-4 family
55 — 64 119 218 334,698 335,035 — 
Total loans held for investment
$30,662 $2,905 $6,187 $39,754 $97,730 $24,343,217 $24,480,701 $43,762 
(1)Loans past due 90 days and still accruing includes premium finance loans of $3.1 million. These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The receipt of the refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date.
(2)As of March 31, 2021 and December 31, 2020, none of our non-accrual loans were earning interest income on a cash basis. Additionally, no interest income was recognized on non-accrual loans for the three months ended March 31, 2021. Accrued interest of $339,000 was reversed during the three months ended March 31, 2021.
As of March 31, 2021 and December 31, 2020, we did not have any loans considered restructured that were not on non-accrual. Of the non-accrual loans at March 31, 2021 and December 31, 2020, $33.7 million and $45.4 million, respectively, met the criteria for restructured. These loans had no unfunded commitments at their respective balance sheet dates.
We did not have any loans that were restructured during the three months ended March 31, 2021 or 2020. As of March 31, 2021 and 2020, we did not have any loans that were restructured within the last 12 months that subsequently defaulted.