XML 17 R11.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Loans Held for Investment and Allowance for Credit Losses on Loans
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Loans Held for Investment and Allowance for Credit Losses on Loans

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

 

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

 

March 31, 2024

 

 

December 31, 2023

 

 

(Dollars in thousands)

 

  Real estate:

 

 

 

 

 

    Commercial real estate owner occupied

 

962,203

 

 

 

960,944

 

    Commercial real estate non-owner occupied

 

1,531,185

 

 

 

1,486,420

 

    Construction and development < 60 months

 

669,726

 

 

 

642,643

 

    Construction residential real estate < 60 months

 

280,686

 

 

 

283,486

 

    Residential real estate first lien

 

1,283,879

 

 

 

1,258,744

 

    Residential real estate all other

 

252,635

 

 

 

244,696

 

    Agriculture

 

449,812

 

 

 

427,139

 

  Commercial non-real estate

 

1,320,840

 

 

 

1,289,452

 

  Consumer non-real estate

 

465,166

 

 

 

476,467

 

  Oil and gas

 

565,728

 

 

 

586,654

 

           Total (1)

$

7,781,860

 

 

$

7,656,645

 

(1) Excludes accrued interest receivable of $40.9 million at March 31, 2024 and $39.4 million at December 31, 2023, that is recorded in accrued interest receivable and other assets.

 

 

 

The Company's loans are currently 84% held by BancFirst and 16% held by Pegasus and Worthington. In addition, approximately 70% of the Company's 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/or securities. The Company’s interest in collateral is secured through filing mortgages and liens, or by possession of the collateral.

 

The Company's portfolio segment descriptions and the weighted average remaining life of portfolio segments are disclosed in Note (5) to the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

Other Real Estate Owned and Repossessed Assets and Loan Modifications

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

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

Other real estate owned and repossessed assets

 

$

35,116

 

 

$

34,200

 

As of both March 31, 2024 and December 31, 2023, other real estate owned included a commercial real estate property recorded at approximately $30.4 million and $29.4 million, respectively. The increase in OREO and this commercial real estate property was due to tenant improvements during the three months ended March 31, 2024. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from other real estate owned in noninterest expense on the consolidated statements of comprehensive income.

This property had the following rental income and operating expenses for the periods presented.

 

 

 

For the Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Rental income

 

$

2,941

 

 

$

2,690

 

Operating expense

 

 

2,250

 

 

 

2,381

 

 

During the three months ended March 31, 2024, the Company sold property held in other real estate owned for a total gain of $177,000, compared to a total gain of $98,000 in the three months ended March 31, 2023.

The Company charges interest on principal balances outstanding on modified loans during deferral periods. The current and future financial effects of the recorded balance of loans considered to be modified during the period were not considered to be material. The recorded balance of loans modified during the three months ended March 31, 2024 was approximately $1.1 million compared to $5.3 million during the year ended December 31, 2023.

Nonaccrual loans

The Company did not recognize any interest income on nonaccrual loans for either the three months ended March 31, 2024 or 2023. In addition, all loans identified as nonaccrual loans have related allowances for credit losses at March 31, 2024 and December 31, 2023, respectively. Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $696,000 for the three months ended March 31, 2024 and approximately $358,000 for the three months ended March 31, 2023.

Nonaccrual loans guaranteed by government agencies totaled approximately $6.6 million at March 31, 2024 and approximately $6.7 million at December 31, 2023.

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

 

 

March 31, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

  Real estate:

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

2,282

 

 

$

1,686

 

Commercial real estate non-owner occupied

 

 

3,010

 

 

 

874

 

Construction and development < 60 months

 

 

20,142

 

 

 

800

 

Construction residential real estate < 60 months

 

 

755

 

 

 

638

 

Residential real estate first lien

 

 

2,919

 

 

 

3,336

 

Residential real estate all other

 

 

531

 

 

 

899

 

Agriculture

 

 

2,169

 

 

 

3,662

 

  Commercial non-real estate

 

 

7,518

 

 

 

10,101

 

  Consumer non-real estate

 

 

703

 

 

 

449

 

  Oil and gas

 

 

1,967

 

 

 

2,128

 

Total

 

$

41,996

 

 

$

24,573

 

 

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 the Company's 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 March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,283

 

 

$

18

 

 

$

5,594

 

 

$

12,895

 

 

$

949,308

 

 

$

962,203

 

 

$

3,670

 

Commercial real estate non-owner occupied

 

 

297

 

 

 

63

 

 

 

1,806

 

 

 

2,166

 

 

 

1,529,019

 

 

 

1,531,185

 

 

 

876

 

Construction and development < 60 months

 

 

501

 

 

 

2,654

 

 

 

800

 

 

 

3,955

 

 

 

665,771

 

 

 

669,726

 

 

 

—

 

Construction residential real estate < 60 months

 

 

2,920

 

 

 

1,411

 

 

 

407

 

 

 

4,738

 

 

 

275,948

 

 

 

280,686

 

 

 

—

 

Residential real estate first lien

 

 

4,584

 

 

 

1,000

 

 

 

1,650

 

 

 

7,234

 

 

 

1,276,645

 

 

 

1,283,879

 

 

 

780

 

Residential real estate all other

 

 

1,297

 

 

 

370

 

 

 

624

 

 

 

2,291

 

 

 

250,344

 

 

 

252,635

 

 

 

115

 

Agriculture

 

 

1,348

 

 

 

1,032

 

 

 

728

 

 

 

3,108

 

 

 

446,704

 

 

 

449,812

 

 

 

215

 

  Commercial non-real estate

 

 

2,550

 

 

 

1,385

 

 

 

6,461

 

 

 

10,396

 

 

 

1,310,444

 

 

 

1,320,840

 

 

 

312

 

  Consumer non-real estate

 

 

3,672

 

 

 

755

 

 

 

867

 

 

 

5,294

 

 

 

459,872

 

 

 

465,166

 

 

 

364

 

  Oil and gas

 

 

501

 

 

 

—

 

 

 

—

 

 

 

501

 

 

 

565,227

 

 

 

565,728

 

 

 

—

 

Total

 

$

24,953

 

 

$

8,688

 

 

$

18,937

 

 

$

52,578

 

 

$

7,729,282

 

 

$

7,781,860

 

 

$

6,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

1,386

 

 

$

26

 

 

$

5,598

 

 

$

7,010

 

 

$

953,934

 

 

$

960,944

 

 

$

4,377

 

Commercial real estate non-owner occupied

 

 

2,224

 

 

 

7,371

 

 

 

1,786

 

 

 

11,381

 

 

 

1,475,039

 

 

 

1,486,420

 

 

 

913

 

Construction and development < 60 months

 

 

198

 

 

 

158

 

 

 

800

 

 

 

1,156

 

 

 

641,487

 

 

 

642,643

 

 

 

—

 

Construction residential real estate < 60 months

 

 

1,542

 

 

 

206

 

 

 

405

 

 

 

2,153

 

 

 

281,333

 

 

 

283,486

 

 

 

332

 

Residential real estate first lien

 

 

3,879

 

 

 

1,204

 

 

 

1,849

 

 

 

6,932

 

 

 

1,251,812

 

 

 

1,258,744

 

 

 

731

 

Residential real estate all other

 

 

757

 

 

 

190

 

 

 

613

 

 

 

1,560

 

 

 

243,136

 

 

 

244,696

 

 

 

549

 

Agriculture

 

 

1,694

 

 

 

724

 

 

 

1,227

 

 

 

3,645

 

 

 

423,494

 

 

 

427,139

 

 

 

579

 

  Commercial non-real estate

 

 

1,501

 

 

 

436

 

 

 

10,028

 

 

 

11,965

 

 

 

1,277,487

 

 

 

1,289,452

 

 

 

1,714

 

  Consumer non-real estate

 

 

3,248

 

 

 

1,090

 

 

 

594

 

 

 

4,932

 

 

 

471,535

 

 

 

476,467

 

 

 

347

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

92

 

 

 

92

 

 

 

586,562

 

 

 

586,654

 

 

 

—

 

Total

 

$

16,429

 

 

$

11,405

 

 

$

22,992

 

 

$

50,826

 

 

$

7,605,819

 

 

$

7,656,645

 

 

$

9,542

 

 

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. These indicators are reviewed and updated regularly throughout the year. 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 the Company’s gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2023, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

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

The following table summarizes the Company’s gross loans held for investment by year of origination and internally assigned credit grades:

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

25,173

 

 

$

109,028

 

 

$

159,208

 

 

$

116,637

 

 

$

82,223

 

 

$

203,263

 

 

$

18,941

 

 

$

714,473

 

Grade 2

 

 

6,168

 

 

 

34,656

 

 

 

46,355

 

 

 

44,871

 

 

 

22,165

 

 

 

40,867

 

 

 

22,938

 

 

 

218,020

 

Grade 3

 

 

4,031

 

 

 

7,629

 

 

 

3,640

 

 

 

5,303

 

 

 

890

 

 

 

3,055

 

 

 

2,100

 

 

 

26,648

 

Grade 4

 

 

—

 

 

 

374

 

 

 

23

 

 

 

170

 

 

 

352

 

 

 

1,654

 

 

 

150

 

 

 

2,723

 

Grade 5

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

339

 

 

 

—

 

 

 

339

 

Total commercial real estate owner occupied

 

 

35,372

 

 

 

151,687

 

 

 

209,226

 

 

 

166,981

 

 

 

105,630

 

 

 

249,178

 

 

 

44,129

 

 

 

962,203

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

30,431

 

 

$

217,786

 

 

$

266,193

 

 

$

187,861

 

 

$

116,004

 

 

$

120,132

 

 

$

32,534

 

 

$

970,941

 

Grade 2

 

 

13,104

 

 

 

163,293

 

 

 

144,208

 

 

 

85,378

 

 

 

45,784

 

 

 

93,020

 

 

 

2,731

 

 

 

547,518

 

Grade 3

 

 

6,109

 

 

 

—

 

 

 

781

 

 

 

1,703

 

 

 

—

 

 

 

247

 

 

 

—

 

 

 

8,840

 

Grade 4

 

 

—

 

 

 

2,280

 

 

 

632

 

 

 

352

 

 

 

98

 

 

 

524

 

 

 

—

 

 

 

3,886

 

Total commercial real estate non-owner occupied

 

 

49,644

 

 

 

383,359

 

 

 

411,814

 

 

 

275,294

 

 

 

161,886

 

 

 

213,923

 

 

 

35,265

 

 

 

1,531,185

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

29,037

 

 

$

89,815

 

 

$

147,644

 

 

$

50,050

 

 

$

5,324

 

 

$

7,984

 

 

$

42,282

 

 

$

372,136

 

Grade 2

 

 

24,777

 

 

 

126,003

 

 

 

62,244

 

 

 

26,007

 

 

 

6,561

 

 

 

15,166

 

 

 

8,778

 

 

 

269,536

 

Grade 3

 

 

—

 

 

 

6,352

 

 

 

893

 

 

 

357

 

 

 

—

 

 

 

70

 

 

 

19,342

 

 

 

27,014

 

Grade 4

 

 

—

 

 

 

—

 

 

 

800

 

 

 

100

 

 

 

140

 

 

 

—

 

 

 

—

 

 

 

1,040

 

Total construction and development < 60 months

 

 

53,814

 

 

 

222,170

 

 

 

211,581

 

 

 

76,514

 

 

 

12,025

 

 

 

23,220

 

 

 

70,402

 

 

 

669,726

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

34,249

 

 

$

84,861

 

 

$

14,251

 

 

$

8,620

 

 

$

99

 

 

$

559

 

 

$

38,050

 

 

$

180,689

 

Grade 2

 

 

28,843

 

 

 

58,132

 

 

 

2,135

 

 

 

21

 

 

 

12

 

 

 

—

 

 

 

1,305

 

 

 

90,448

 

Grade 3

 

 

—

 

 

 

8,191

 

 

 

374

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,565

 

Grade 4

 

 

578

 

 

 

200

 

 

 

206

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

984

 

Total construction residential real estate < 60 months

 

 

63,670

 

 

 

151,384

 

 

 

16,966

 

 

 

8,641

 

 

 

111

 

 

 

559

 

 

 

39,355

 

 

 

280,686

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

72,174

 

 

$

268,280

 

 

$

214,401

 

 

$

167,456

 

 

$

110,847

 

 

$

204,350

 

 

$

4,637

 

 

$

1,042,145

 

Grade 2

 

 

14,813

 

 

 

49,624

 

 

 

42,664

 

 

 

37,763

 

 

 

24,732

 

 

 

51,823

 

 

 

—

 

 

 

221,419

 

Grade 3

 

 

232

 

 

 

2,987

 

 

 

2,691

 

 

 

2,538

 

 

 

1,710

 

 

 

5,622

 

 

 

—

 

 

 

15,780

 

Grade 4

 

 

91

 

 

 

913

 

 

 

218

 

 

 

725

 

 

 

712

 

 

 

1,876

 

 

 

—

 

 

 

4,535

 

Total residential real estate first lien

 

 

87,310

 

 

 

321,804

 

 

 

259,974

 

 

 

208,482

 

 

 

138,001

 

 

 

263,671

 

 

 

4,637

 

 

 

1,283,879

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

8,258

 

 

$

36,264

 

 

$

21,550

 

 

$

6,892

 

 

$

7,585

 

 

$

14,383

 

 

$

55,776

 

 

$

150,708

 

Grade 2

 

 

1,682

 

 

 

5,082

 

 

 

5,290

 

 

 

1,434

 

 

 

1,595

 

 

 

3,611

 

 

 

78,539

 

 

 

97,233

 

Grade 3

 

 

455

 

 

 

292

 

 

 

176

 

 

 

196

 

 

 

166

 

 

 

671

 

 

 

1,590

 

 

 

3,546

 

Grade 4

 

 

—

 

 

 

119

 

 

 

24

 

 

 

—

 

 

 

—

 

 

 

111

 

 

 

894

 

 

 

1,148

 

Total residential real estate all other

 

 

10,395

 

 

 

41,757

 

 

 

27,040

 

 

 

8,522

 

 

 

9,346

 

 

 

18,776

 

 

 

136,799

 

 

 

252,635

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

13,547

 

 

$

57,413

 

 

$

47,429

 

 

$

33,676

 

 

$

25,336

 

 

$

48,773

 

 

$

49,003

 

 

$

275,177

 

Grade 2

 

 

11,754

 

 

 

25,588

 

 

 

21,021

 

 

 

17,212

 

 

 

9,303

 

 

 

20,012

 

 

 

48,165

 

 

 

153,055

 

Grade 3

 

 

1,602

 

 

 

8,528

 

 

 

819

 

 

 

966

 

 

 

2,591

 

 

 

3,328

 

 

 

1,931

 

 

 

19,765

 

Grade 4

 

 

—

 

 

 

768

 

 

 

627

 

 

 

53

 

 

 

99

 

 

 

267

 

 

 

1

 

 

 

1,815

 

Total Agriculture

 

 

26,903

 

 

 

92,297

 

 

 

69,896

 

 

 

51,907

 

 

 

37,329

 

 

 

72,380

 

 

 

99,100

 

 

 

449,812

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

38,088

 

 

$

177,037

 

 

$

163,957

 

 

$

148,673

 

 

$

32,770

 

 

$

64,198

 

 

$

317,586

 

 

$

942,309

 

Grade 2

 

 

24,463

 

 

 

106,857

 

 

 

33,066

 

 

 

17,747

 

 

 

6,480

 

 

 

13,144

 

 

 

161,984

 

 

 

363,741

 

Grade 3

 

 

1,184

 

 

 

1,930

 

 

 

2,260

 

 

 

1,015

 

 

 

283

 

 

 

196

 

 

 

3,411

 

 

 

10,279

 

Grade 4

 

 

126

 

 

 

122

 

 

 

1,494

 

 

 

228

 

 

 

473

 

 

 

360

 

 

 

1,240

 

 

 

4,043

 

Grade 5

 

 

—

 

 

 

18

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

450

 

 

 

—

 

 

 

468

 

Total commercial non-real estate

 

 

63,861

 

 

 

285,964

 

 

 

200,777

 

 

 

167,663

 

 

 

40,006

 

 

 

78,348

 

 

 

484,221

 

 

 

1,320,840

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

52,889

 

 

$

180,937

 

 

$

90,786

 

 

$

49,021

 

 

$

14,926

 

 

$

9,321

 

 

$

11,638

 

 

$

409,518

 

Grade 2

 

 

4,202

 

 

 

18,228

 

 

 

14,005

 

 

 

6,266

 

 

 

1,906

 

 

 

1,323

 

 

 

2,299

 

 

 

48,229

 

Grade 3

 

 

565

 

 

 

1,714

 

 

 

1,493

 

 

 

1,221

 

 

 

295

 

 

 

360

 

 

 

10

 

 

 

5,658

 

Grade 4

 

 

94

 

 

 

420

 

 

 

611

 

 

 

390

 

 

 

155

 

 

 

85

 

 

 

6

 

 

 

1,761

 

Total consumer non-real estate

 

 

57,750

 

 

 

201,299

 

 

 

106,895

 

 

 

56,898

 

 

 

17,282

 

 

 

11,089

 

 

 

13,953

 

 

 

465,166

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

70,735

 

 

$

71,998

 

 

$

6,206

 

 

$

28,039

 

 

$

6,172

 

 

$

3,205

 

 

$

252,952

 

 

$

439,307

 

Grade 2

 

 

55,581

 

 

 

11,759

 

 

 

5,278

 

 

 

829

 

 

 

386

 

 

 

358

 

 

 

51,437

 

 

 

125,628

 

Grade 3

 

 

—

 

 

 

—

 

 

 

—

 

 

 

185

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

185

 

Grade 4

 

 

—

 

 

 

—

 

 

 

—

 

 

 

148

 

 

 

—

 

 

 

460

 

 

 

—

 

 

 

608

 

Total oil and gas

 

 

126,316

 

 

 

83,757

 

 

 

11,484

 

 

 

29,201

 

 

 

6,558

 

 

 

4,023

 

 

 

304,389

 

 

 

565,728

 

Total loans held for investment

 

$

575,035

 

 

$

1,935,478

 

 

$

1,525,653

 

 

$

1,050,103

 

 

$

528,174

 

 

$

935,167

 

 

$

1,232,250

 

 

$

7,781,860

 

 

 

The following tables summarize the Company's gross charge-offs by year of origination for the periods indicated:

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Three months ended March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

13

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

21

 

 

 

—

 

 

 

23

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

27

 

 

 

29

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

31

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

1,001

 

 

 

275

 

 

 

132

 

 

 

12

 

 

 

126

 

 

 

1,508

 

 

 

3,054

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

244

 

 

 

97

 

 

 

51

 

 

 

13

 

 

 

15

 

 

 

11

 

 

 

431

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

9

 

 

 

83

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

92

 

Total current-period gross charge-offs

 

$

1

 

 

$

1,269

 

 

$

486

 

 

$

199

 

 

$

26

 

 

$

164

 

 

$

1,546

 

 

$

3,691

 

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Three months ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

7

 

 

$

1

 

 

$

22

 

 

$

18

 

 

$

—

 

 

$

—

 

 

$

48

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

2

 

 

 

19

 

 

 

—

 

 

 

1

 

 

 

4

 

 

 

—

 

 

 

26

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

4

 

 

 

—

 

 

 

16

 

 

 

13

 

 

 

2

 

 

 

—

 

 

 

35

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

67

 

 

 

62

 

 

 

—

 

 

 

—

 

 

 

47

 

 

 

—

 

 

 

176

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

76

 

 

 

32

 

 

 

15

 

 

 

9

 

 

 

6

 

 

 

2

 

 

 

140

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total current-period gross charge-offs

 

$

—

 

 

$

158

 

 

$

114

 

 

$

53

 

 

$

41

 

 

$

64

 

 

$

2

 

 

$

432

 

 

 

 

Allowance for Credit Losses Methodology

 

The Company determines its provision for credit losses and allowance for credit losses using the current expected credit loss methodology that is referred to as the current expected credit loss ("CECL") model. The allowance for current expected credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The allowance for credit losses methodology is disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

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

 

 

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 March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,483

 

 

$

(15

)

 

$

20

 

 

$

5

 

 

$

(20

)

 

$

7,468

 

Commercial real estate non-owner occupied

 

 

33,080

 

 

 

(13

)

 

 

—

 

 

 

(13

)

 

 

113

 

 

 

33,180

 

Construction and development < 60 months

 

 

3,950

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,646

 

 

 

6,596

 

Construction residential real estate < 60 months

 

 

3,414

 

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

53

 

 

 

3,464

 

Residential real estate first lien

 

 

4,914

 

 

 

(23

)

 

 

4

 

 

 

(19

)

 

 

28

 

 

 

4,923

 

Residential real estate all other

 

 

1,646

 

 

 

(29

)

 

 

5

 

 

 

(24

)

 

 

30

 

 

 

1,652

 

Agriculture

 

 

6,137

 

 

 

(31

)

 

 

12

 

 

 

(19

)

 

 

19

 

 

 

6,137

 

  Commercial non-real estate

 

 

22,745

 

 

 

(3,054

)

 

 

33

 

 

 

(3,021

)

 

 

758

 

 

 

20,482

 

  Consumer non-real estate

 

 

4,401

 

 

 

(431

)

 

 

69

 

 

 

(362

)

 

 

296

 

 

 

4,335

 

  Oil and gas

 

 

9,030

 

 

 

(92

)

 

 

—

 

 

 

(92

)

 

 

92

 

 

 

9,030

 

Total

 

$

96,800

 

 

$

(3,691

)

 

$

143

 

 

$

(3,548

)

 

$

4,015

 

 

$

97,267

 

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

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 March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

6,416

 

 

$

(48

)

 

$

49

 

 

$

1

 

 

$

130

 

 

$

6,547

 

Commercial real estate non-owner occupied

 

 

30,190

 

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

1,933

 

 

 

32,120

 

Construction and development < 60 months

 

 

3,778

 

 

 

(2

)

 

 

3

 

 

 

1

 

 

 

(171

)

 

 

3,608

 

Construction residential real estate < 60 months

 

 

3,275

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(49

)

 

 

3,226

 

Residential real estate first lien

 

 

4,092

 

 

 

(2

)

 

 

3

 

 

 

1

 

 

 

361

 

 

 

4,454

 

Residential real estate all other

 

 

1,418

 

 

 

(26

)

 

 

2

 

 

 

(24

)

 

 

50

 

 

 

1,444

 

Agriculture

 

 

6,217

 

 

 

(35

)

 

 

6

 

 

 

(29

)

 

 

80

 

 

 

6,268

 

  Commercial non-real estate

 

 

25,106

 

 

 

(176

)

 

 

22

 

 

 

(154

)

 

 

127

 

 

 

25,079

 

  Consumer non-real estate

 

 

4,132

 

 

 

(140

)

 

 

57

 

 

 

(83

)

 

 

183

 

 

 

4,232

 

  Oil and gas

 

 

8,104

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(322

)

 

 

7,782

 

Total

 

$

92,728

 

 

$

(432

)

 

$

142

 

 

$

(290

)

 

$

2,322

 

 

$

94,760

 

 

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 Company did not purchase credit-deteriorated loans during the three month period ended March 31, 2024 or March 31, 2023.

 

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 three months ended March 31, 2024 and 2023, 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

 

 

Other Assets

 

 

Total

 

 

Specific Allocation

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

As of March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate non-owner occupied

 

 

632

 

 

 

—

 

 

 

—

 

 

 

632

 

 

 

250

 

Construction and development < 60 months

 

 

24,977

 

 

 

—

 

 

 

—

 

 

 

24,977

 

 

 

2,825

 

Construction residential real estate < 60 months

 

 

628

 

 

 

—

 

 

 

—

 

 

 

628

 

 

 

134

 

Residential real estate first lien

 

 

125

 

 

 

—

 

 

 

—

 

 

 

125

 

 

 

54

 

Residential real estate all other

 

 

81

 

 

 

—

 

 

 

—

 

 

 

81

 

 

 

82

 

Agriculture

 

 

1,837

 

 

 

490

 

 

 

15

 

 

 

2,342

 

 

 

1,386

 

  Commercial non-real estate

 

 

—

 

 

 

5,320

 

 

 

112

 

 

 

5,432

 

 

 

1,582

 

  Consumer non-real estate

 

 

—

 

 

 

—

 

 

 

280

 

 

 

280

 

 

 

140

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total collateral-dependent loans held for investment

 

$

28,280

 

 

$

5,810

 

 

$

407

 

 

$

34,497

 

 

$

6,453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral Type

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Business Assets

 

 

Other Assets

 

 

Total

 

 

Specific Allocation

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate non-owner occupied

 

 

632

 

 

 

—

 

 

 

—

 

 

 

632

 

 

 

250

 

Construction and development < 60 months

 

 

800

 

 

 

—

 

 

 

—

 

 

 

800

 

 

 

225

 

Construction residential real estate < 60 months

 

 

638

 

 

 

—

 

 

 

—

 

 

 

638

 

 

 

134

 

Residential real estate first lien

 

 

189

 

 

 

—

 

 

 

—

 

 

 

189

 

 

 

62

 

Residential real estate all other

 

 

140

 

 

 

—

 

 

 

—

 

 

 

140

 

 

 

140

 

Agriculture

 

 

1,841

 

 

 

593

 

 

 

15

 

 

 

2,449

 

 

 

1,386

 

  Commercial non-real estate

 

 

—

 

 

 

6,090

 

 

 

241

 

 

 

6,331

 

 

 

1,867

 

  Consumer non-real estate

 

 

—

 

 

 

—

 

 

 

147

 

 

 

147

 

 

 

88

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total collateral-dependent loans held for investment

 

$

4,240

 

 

$

6,683

 

 

$

403

 

 

$

11,326

 

 

$

4,152

 

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 consolidated 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:

 

 

 

Three Months Ended March 31,

 

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Other real estate owned

 

$

1,582

 

 

$

565

 

Repossessed assets

 

 

455

 

 

 

395

 

Total

 

$

2,037

 

 

$

960