Loans Held for Investment and Allowance for Credit Losses on Loans

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans Held for Investment and Allowance for Credit Losses on Loans

(4) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

Loans held for investment are summarized by portfolio segment as follows:

	September 30, 2021		December 31, 2020
	Amount		Amount
	(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	653,359	$	641,987
Commercial real estate non-owner occupied		963,544		971,158
Construction and development < 60 months		302,075		229,615
Construction residential real estate < 60 months		227,294		206,195
Residential real estate first lien		877,160		853,316
Residential real estate all other		158,145		168,081
Farmland		270,215		252,958
Commercial and agricultural non-real estate		1,065,973		1,159,810
Consumer non-real estate		383,878		355,405
Oil and gas		118,444		179,355
Other loans (2)		378,161		822,078
Pegasus Bank		618,688		554,548
Total (1)	$	6,016,936	$	6,394,506
(1) Excludes accrued interest receivable of $21.2 million at September 30, 2021 and $26.0 million at December 31, 2020, that is recorded in accrued interest receivable and other assets.
(2) Includes PPP loans held for investment of $201.2 million, net of unamortized processing fees of $6.7 million at September 30, 2021 and $652.7 million, net of unamortized processing fees of $14.5 million at December 31, 2020.

Other loans. Other loans consist of loans approved by the Small Business Administration (“SBA”), which include loans funded through the Paycheck Protection Program (“PPP”). Since PPP loans are fully guaranteed by the SBA, there is no expected credit loss

related to these loans. In April 2020, the Company began originating loans to qualified small businesses under the PPP administered by the SBA. The Company had processing fees, which were recognized as interest income related to the PPP loans totaling $10.0 million and $3.8 million during the three months ended September 30, 2021 and 2020, respectively and $31.7 million and $7.5 million during the nine months ended September 30, 2021 and 2020, respectively.

BancFirst’s loans are mostly to customers within Oklahoma and approximately 57% of the loans are secured by real estate. Credit risk on loans is managed through limits on amounts loaned to individual and related borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained, if any, to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and securities. The Company’s interest in collateral is secured through filing mortgages and liens, and in some cases, by possession of the collateral.

Pegasus Bank’s loans are mostly to customers within Texas and approximately $339 million or 55% of the loans are secured by real estate at September 30, 2021. Pegasus Bank’s commercial and agricultural non-real estate loans were approximately $257 million at September 30, 2021 and approximately $262 million at December 31, 2020.

BancFirst and Pegasus Bank’s commercial and agricultural non-real estate and oil and gas loan categories include upstream and midstream energy loans, and loans to companies that provide ancillary services to the energy industry, such as transportation, wellsite preparation contractors and equipment manufacturers. Energy loans are summarized as follows:

	September 30, 2021		December 31, 2020
	Amount		Amount
	(Dollars in thousands)
BancFirst energy loans
Upstream	$	129,838	$	190,788
Midstream		26,317		49,734
Ancillary services		66,294		59,410
Pegasus Bank energy loans
Upstream		107,429		107,103
Midstream		8,797		11,047
Ancillary services		29,928		12,503
Total	$	368,603	$	430,585

Accounting policies related to appraisals, and charge-offs are disclosed in Note (1) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Troubled Debt Restructurings, Other Real Estate Owned and Repossessed Assets and Held for Sale Assets

The following is a summary of troubled debt restructurings and other real estate owned and repossessed assets:

	September 30,		December 31,
	2021		2020
	(Dollars in thousands)
Troubled debt restructurings	$	7,073	$	7,784
Other real estate owned and repossessed assets	$	39,060	$	32,480

The Company charges interest on principal balances outstanding on troubled debt restructurings during deferral periods. The current and future financial effects of the recorded balance of loans considered to be troubled debt restructurings were not considered to be material.

During the nine months ended September 30, 2021, the Company completed the move to its new corporate headquarters and transferred approximately $2.4 million from premises and equipment related to its previous headquarters to other real estate owned.

During the nine months ended September 30, 2021, the Company sold property held in other real estate owned for a total gain of $245,000, compared to a total gain of $2.3 million in the nine months ended September 30, 2020.

Nonaccrual loans

Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $1.7 million for the nine months ended September 30, 2021 and approximately $2.1 million for the nine months ended September 30, 2020.

Nonaccrual loans guaranteed by government agencies totaled approximately $3.1 million at September 30, 2021 and approximately $7.8 million at December 31, 2020.

The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
BancFirst
Real estate:
Commercial real estate owner occupied	$	2,332	$	1,404
Commercial real estate non-owner occupied		492		4,719
Construction and development < 60 months		83		95
Construction residential real estate < 60 months		—		—
Residential real estate first lien		3,167		3,615
Residential real estate all other		1,184		1,362
Farmland		5,561		7,901
Commercial and agricultural non-real estate		11,048		12,782
Consumer non-real estate		226		268
Oil and gas		—		—
Other loans		2,514		5,399
Pegasus Bank		—		—
Total	$	26,607	$	37,545

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents an age analysis of our loans held for investment:

	Age Analysis of Past Due Loans
	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(Dollars in thousands)
As of September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	1,086	$	—	$	968	$	2,054	$	651,305	$	653,359	$	223
Commercial real estate non-owner occupied		109		—		75		184		963,360		963,544		—
Construction and development < 60 months		114		—		—		114		301,961		302,075		—
Construction residential real estate < 60 months		—		—		—		—		227,294		227,294		—
Residential real estate first lien		3,832		1,213		2,623		7,668		869,492		877,160		1,268
Residential real estate all other		728		128		1,465		2,321		155,824		158,145		386
Farmland		626		—		3,459		4,085		266,130		270,215		224
Commercial and agricultural non-real estate		1,052		2,026		5,114		8,192		1,057,781		1,065,973		639
Consumer non-real estate		1,098		379		270		1,747		382,131		383,878		221
Oil and gas		—		—		—		—		118,444		118,444		—
Other loans		5,842		733		3,546		10,121		368,040		378,161		2,225
Pegasus Bank		—		—		—		—		618,688		618,688		—
Total	$	14,487	$	4,479	$	17,520	$	36,486	$	5,980,450	$	6,016,936	$	5,186
As of December 31, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	1,096	$	108	$	1,164	$	2,368	$	639,619	$	641,987	$	—
Commercial real estate non-owner occupied		323		—		34		357		970,801		971,158		35
Construction and development < 60 months		511		86		—		597		229,018		229,615		—
Construction residential real estate < 60 months		1,106		—		282		1,388		204,807		206,195		282
Residential real estate first lien		5,428		1,463		2,978		9,869		843,447		853,316		945
Residential real estate all other		520		55		1,606		2,181		165,900		168,081		384
Farmland		1,297		344		6,223		7,864		245,094		252,958		135
Commercial and agricultural non-real estate		2,788		1,794		4,345		8,927		1,150,883		1,159,810		465
Consumer non-real estate		2,154		501		534		3,189		352,216		355,405		386
Oil and gas		—		—		—		—		179,355		179,355		—
Other loans		951		1,223		6,618		8,792		813,286		822,078		2,170
Pegasus Bank		—		—		—		—		554,548		554,548		—
Total	$	16,174	$	5,574	$	23,784	$	45,532	$	6,348,974	$	6,394,506	$	4,802

Due to the impacts of the COVID-19 pandemic, the Company had approximately $58.4 million in modified loans as of September 30, 2021 and $81.7 million in modified loans as of December 31, 2020, most of which were secured by commercial real estate. These modifications were undertaken in response to Section 4013 of the CARES Act and the regulatory intent outlined in the Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus and to provide businesses financial flexibility until the economy has time to recover to a more normal level of activity. However, these modifications, which typically involve payment modifications and forbearance, also have the effect of delaying recognition of loans that may ultimately be permanently impaired. The timing and extent of such consequences are difficult to ascertain at this time and are dependent on the duration of the COVID-19 pandemic, the level and success of the government’s economic stimulus, and further regulatory guidance. These modified loans are included in Current Loans in the table above.

Credit Quality Indicators

The Company considers credit quality indicators to monitor the credit risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical credit loss experience and economic conditions. An internal risk grading system is used to indicate the credit risk of loans. The loan grades used by the Company are for internal risk identification purposes and do not directly correlate to regulatory classification categories or any financial reporting definitions. The general characteristics of the risk grades and the table summarizing our gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2020, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The Company’s revolving loans that are converted to term loans are not material and therefore have not been presented.

The following table summarizes our gross loans held for investment by year of origination and internally assigned credit grades as of September 30, 2021:

	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(Dollars in thousands)
As of September 30, 2021
BancFirst
Commercial real estate owner occupied
Grade 1	$	89,910	$	130,040	$	78,492	$	50,380	$	34,793	$	98,825	$	11,514	$	493,954
Grade 2		24,092		38,773		22,069		9,884		9,466		38,454		7,977		150,715
Grade 3		—		4,096		129		264		471		1,374		—		6,334
Grade 4		337		—		911		452		—		331		325		2,356
Total commercial real estate owner occupied loans		114,339		172,909		101,601		60,980		44,730		138,984		19,816		653,359
Commercial real estate non-owner occupied
Grade 1		124,690		210,442		139,681		58,198		36,899		130,688		9,475		710,073
Grade 2		42,653		54,748		44,156		34,292		18,326		41,774		5,150		241,099
Grade 3		7,387		—		3,301		135		237		642		—		11,702
Grade 4		417		—		49		35		—		169		—		670
Total commercial real estate non-owner occupied loans		175,147		265,190		187,187		92,660		55,462		173,273		14,625		963,544
Construction and development < 60 months
Grade 1		123,070		37,650		64,046		11,080		2,081		2,775		13,624		254,326
Grade 2		16,597		9,714		13,590		2,099		1,782		600		2,004		46,386
Grade 3		1,273		—		—		7		—		—		—		1,280
Grade 4		—		—		58		7		18		—		—		83
Total construction and development < 60 months		140,940		47,364		77,694		13,193		3,881		3,375		15,628		302,075
Construction residential real estate < 60 months
Grade 1		156,524		38,426		46		—		19		29		222		195,266
Grade 2		21,383		9,425		—		107		—		431		—		31,346
Grade 3		547		135		—		—		—		—		—		682
Total construction residential real estate < 60 months		178,454		47,986		46		107		19		460		222		227,294
Residential real estate first lien
Grade 1		193,151		168,628		100,936		64,930		47,968		141,503		—		717,116
Grade 2		33,765		25,873		16,379		15,931		9,710		40,834		—		142,492
Grade 3		942		1,523		2,375		2,044		1,350		4,391		—		12,625
Grade 4		49		648		530		1,164		931		1,605		—		4,927
Total residential real estate first lien		227,907		196,672		120,220		84,069		59,959		188,333		—		877,160
Residential real estate all other
Grade 1		12,798		14,033		9,976		6,381		4,203		13,338		27,591		88,320
Grade 2		1,355		3,188		1,763		1,563		914		2,284		54,473		65,540
Grade 3		279		102		264		240		709		327		556		2,477
Grade 4		14		183		—		580		13		649		369		1,808
Total residential real estate all other		14,446		17,506		12,003		8,764		5,839		16,598		82,989		158,145
Farmland
Grade 1		41,033		40,571		24,326		17,269		13,249		31,871		5,473		173,792
Grade 2		13,328		9,683		24,655		5,522		4,069		12,184		9,628		79,069
Grade 3		2,785		4,069		1,439		319		1,330		1,272		1,973		13,187
Grade 4		773		414		—		2,383		110		209		278		4,167
Total farmland		57,919		54,737		50,420		25,493		18,758		45,536		17,352		270,215
Commercial and agricultural non-real estate
Grade 1		222,156		110,551		93,150		46,932		50,431		48,206		216,301		787,727
Grade 2		52,100		37,867		26,032		9,759		3,176		13,683		72,080		214,697
Grade 3		4,577		5,676		1,357		11,555		1,452		623		28,105		53,345
Grade 4		2,675		421		1,607		958		810		1,268		2,465		10,204

Total commercial and agricultural non-real estate		281,508		154,515		122,146		69,204		55,869		63,780		318,951		1,065,973
Consumer non-real estate
Grade 1		162,782		96,567		52,943		22,050		7,474		3,033		5,483		350,332
Grade 2		14,402		8,211		3,850		2,083		958		1,450		295		31,249
Grade 3		430		304		633		345		97		45		5		1,859
Grade 4		61		94		206		56		4		17		—		438
Total consumer non-real estate		177,675		105,176		57,632		24,534		8,533		4,545		5,783		383,878
Oil and gas
Grade 1		56,060		—		54		59		—		—		29,253		85,426
Grade 2		7,790		1,021		64		—		—		—		8,550		17,425
Grade 3		15,593		—		—		—		—		—		—		15,593
Total oil and gas		79,443		1,021		118		59		—		—		37,803		118,444
Other loans
Grade 1		223,041		32,338		23,410		16,745		14,904		34,319		25,442		370,199
Grade 2		—		—		—		—		2,140		3,047		1,010		6,197
Grade 3		—		—		—		10		—		47		1,052		1,109
Grade 4		—		54		125		—		283		83		111		656
Total other loans		223,041		32,392		23,535		16,755		17,327		37,496		27,615		378,161
Pegasus Bank
Grade 1		90,125		92,819		55,004		5,023		14,241		36,338		156,927		450,477
Grade 2		62,861		9,238		17,008		11,199		22,578		6,365		38,605		167,854
Grade 3		251		106		—		—		—		—		—		357
Total Pegasus Bank		153,237		102,163		72,012		16,222		36,819		42,703		195,532		618,688
Total loans held for investment	$	1,824,056	$	1,197,631	$	824,614	$	412,040	$	307,196	$	715,083	$	736,316	$	6,016,936

Allowance for Credit Losses Methodology

On January 1, 2020, the Company adopted ASC 326, which replaces the incurred loss methodology for determining its provision for credit losses and allowance for credit losses with an expected loss methodology that is referred to as the CECL model. Upon adoption, the allowance for credit losses was decreased by $3.2 million, with no impact to the consolidated statement of income.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist by identifying by portfolio segments, the applicable weighted average life and measuring the allowance for credit losses using the vintage loss analysis adjusted for qualitative factors. The weighted average lives of the Company’s loans segments are disclosed in Note (1) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The decrease in the allowance for credit loss during 2021 was primarily driven by a reversal of provision during 2021 based on sustained improvements in the economy, both nationally and in Oklahoma, which reduced the amount of expected credit loss within the loan portfolio. This reduction was partially offset by additional allowance for credit loss required by newly acquired loans purchased with credit deterioration.

The following table details activity in the allowance for credit losses on loans for the period presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Allowance for Credit Losses
	Balance at beginning of period		Initial allowance on loans purchased with credit deterioration			Charge- offs			Recoveries		Net charge-offs			(Benefit from) /Provision for credit losses on loans			Balance at end of period
	(Dollars in thousands)
Three Months Ended September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	6,755	$	93		$	(3	)	$	72	$	69		$	(51	)	$	6,866
Commercial real estate non-owner occupied		14,490		191			(7	)		67		60			(6	)		14,735
Construction and development < 60 months		2,893		—			—			4		4			398			3,295
Construction residential real estate < 60 months		889		—			—			—		—			(35	)		854
Residential real estate first lien		2,805		9			(4	)		9		5			186			3,005
Residential real estate all other		1,941		—			—			46		46			202			2,189
Farmland		3,715		(248	)		—			—		—			967			4,434
Commercial and agricultural non-real estate		31,615		952			(146	)		43		(103	)		(859	)		31,605
Consumer non-real estate		3,315		30			(67	)		49		(18	)		51			3,378
Oil and gas		7,817		—			—			—		—			(38	)		7,779
Other loans		3,138		—			(73	)		—		(73	)		239			3,304
Pegasus Bank		4,590		—			—			—		—			429			5,019
Total	$	83,963	$	1,027		$	(300	)	$	290	$	(10	)	$	1,483		$	86,463
Nine Months Ended September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	7,035	$	1,080		$	(3	)	$	73	$	70		$	(1,319	)	$	6,866
Commercial real estate non-owner occupied		11,842		824			(803	)		67		(736	)		2,805			14,735
Construction and development < 60 months		2,560		173			—			9		9			553			3,295
Construction residential real estate < 60 months		627		—			—			—		—			227			854
Residential real estate first lien		2,570		126			(56	)		36		(20	)		329			3,005
Residential real estate all other		2,230		—			(46	)		50		4			(45	)		2,189
Farmland		3,136		395			—			1		1			902			4,434
Commercial and agricultural non-real estate		32,400		5,663			(3,683	)		194		(3,489	)		(2,969	)		31,605
Consumer non-real estate		3,377		38			(689	)		247		(442	)		405			3,378
Oil and gas		17,851		—			—			—		—			(10,072	)		7,779
Other loans		3,182		—			(134	)		—		(134	)		256			3,304
Pegasus Bank		4,556		—			—			1		1			462			5,019
Total	$	91,366	$	8,299		$	(5,414	)	$	678	$	(4,736	)	$	(8,466	)	$	86,463

	Allowance for Credit Losses
	Balance at beginning of period		Impact of CECL adoption		Initial allowance on loans purchased with credit deterioration		Charge- offs			Recoveries		Net charge-offs			Provision for /(benefit from) credit losses on loans			Balance at end of period
	(Dollars in thousands)
Three Months Ended September 30, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	6,630	$	—	$	—	$	(24	)	$	1	$	(23	)	$	1,287		$	7,894
Commercial real estate non-owner occupied		9,483		—		—		(87	)		—		(87	)		5,508			14,904
Construction and development < 60 months		1,755		—		—		—			3		3			(169	)		1,589
Construction residential real estate < 60 months		2,259		—		—		(368	)		—		(368	)		769			2,660
Residential real estate first lien		8,553		—		—		(133	)		5		(128	)		1,839			10,264
Residential real estate all other		2,720		—		—		(84	)		1		(83	)		219			2,856

Farmland		2,511		—			—		(3	)		—		(3	)		1,902		4,410
Commercial and agricultural non-real estate		34,036		—			—		(594	)		13		(581	)		2,463		35,918
Consumer non-real estate		4,714		—			—		(195	)		43		(152	)		539		5,101
Oil and gas		10,469		—			—		—			—		—			3,055		13,524
Other loans		2,513		—			—		(100	)		8		(92	)		800		3,221
Pegasus Bank		3,857		—			—		(600	)		—		(600	)		528		3,785
Total	$	89,500	$	—		$	—	$	(2,188	)	$	74	$	(2,114	)	$	18,740	$	106,126
Nine Months Ended September 30, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	5,625	$	(2,806	)	$	432	$	(137	)	$	2	$	(135	)	$	4,778	$	7,894
Commercial real estate non-owner occupied		8,358		(5,507	)		—		(87	)		—		(87	)		12,140		14,904
Construction and development < 60 months		2,214		(1,056	)		—		(59	)		6		(53	)		484		1,589
Construction residential real estate < 60 months		1,933		(778	)		—		(397	)		—		(397	)		1,902		2,660
Residential real estate first lien		8,692		(3,831	)		7		(351	)		11		(340	)		5,736		10,264
Residential real estate all other		2,767		(1,408	)		—		(116	)		29		(87	)		1,584		2,856
Farmland		2,821		(1,408	)		1		(3	)		—		(3	)		2,999		4,410
Commercial and agricultural non-real estate		13,462		13,195			62		(968	)		96		(872	)		10,071		35,918
Consumer non-real estate		3,252		(622	)		—		(751	)		157		(594	)		3,065		5,101
Oil and gas		1,883		(1,346	)		—		—			—		—			12,987		13,524
Other loans		2,632		(116	)		—		(100	)		10		(90	)		795		3,221
Pegasus Bank		599		2,488			—		(841	)		424		(417	)		1,115		3,785
Total	$	54,238	$	(3,195	)	$	502	$	(3,810	)	$	735	$	(3,075	)	$	57,656	$	106,126

Purchased Credit Deteriorated Loans

The Company has previously purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The credit-deteriorated loans purchased during the nine months ended September 30, 2021 and 2020 were as follows:

	Loans acquired with deteriorated credit quality
	(Dollars in thousands)
For the period ended September 30, 2021
Purchase price of loans at acquisition	$	39,284
Allowance for credit losses at acquisition		8,299
Par value of acquired loans at acquisition	$	47,583
For the period ended September 30, 2020
Purchase price of loans at acquisition	$	1,761
Allowance for credit losses at acquisition		502
Par value of acquired loans at acquisition	$	2,263

Collateral Dependent Loans

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. During the nine months ended September 30, 2021 and 2020, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent. The following table summarizes collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:

	Collateral Type
	Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
	(Dollars in thousands)
As of September 30, 2021
BancFirst
Real estate:
Commercial real estate owner occupied	$	1,913	$	—	$	—	$	—	$	1,913	$	692
Commercial real estate non-owner occupied		806		—		—		—		806		237
Construction and development < 60 months		—		—		—		—		—		—
Construction residential real estate < 60 months		—		—		—		—		—		—
Residential real estate first lien		927		—		—		—		927		162
Residential real estate all other		1,190		—		—		—		1,190		803
Farmland		8,042		—		—		—		8,042		2,257
Commercial and agricultural non-real estate		—		7,017		747		5,724		13,488		5,636
Consumer non-real estate		—		—		—		82		82		26
Oil and gas		—		—		—		—		—		—
Other loans		—		10		—		—		10		10
Pegasus Bank		—		—		—		—		—		—
Total collateral-dependent loans held for investment	$	12,878	$	7,027	$	747	$	5,806	$	26,458	$	9,823
	Collateral Type
	Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
	(Dollars in thousands)
As of December 31, 2020
BancFirst
Real estate:
Commercial real estate owner occupied	$	848	$	—	$	—	$	—	$	848	$	226
Commercial real estate non-owner occupied		4,719		—		—		—		4,719		1,000
Construction and development < 60 months		—		—		—		—		—		—
Construction residential real estate < 60 months		—		—		—		—		—		—
Residential real estate first lien		860		—		—		—		860		151
Residential real estate all other		866		—		—		—		866		616
Farmland		3,258		—		—		—		3,258		1,114
Commercial and agricultural non-real estate		—		8,460		—		413		8,873		2,813
Consumer non-real estate		—		—		—		109		109		58
Oil and gas		—		—		—		—		—		—
Other loans		—		13		—		—		13		12
Pegasus Bank		1,257		—		—		—		1,257		222
Total collateral-dependent loans held for investment	$	11,808	$	8,473	$	—	$	522	$	20,803	$	6,212

Non-Cash Transfers from Loans and Premises and Equipment

Transfers from loans and premises and equipment to other real estate owned and repossessed assets are non-cash transactions, and are not included in the statements of cash flow.

Transfers from loans and premises and equipment to other real estate owned and repossessed assets during the periods presented are summarized as follows:

	Nine Months Ended September 30,
	2021		2020
	(Dollars in thousands)
Other real estate owned	$	10,564	$	3,458
Repossessed assets		594		965
Total	$	11,158	$	4,423