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Loans and Allowances for Credit Losses
 12 Months Ended
Dec. 31, 2019
Loans and Leases Receivable, Net Amount [Abstract]  
Loans and Allowances for Credit Losses [Text Block] Loans and Allowances for Credit Losses

The portfolio segments of the loan portfolio are as follows (in thousands):

 
 
December 31, 2019
 
December 31, 2018
 
 
Fixed
Rate
 
Variable
Rate
 
Non-accrual
 
Total
 
Fixed
Rate
 
Variable
Rate
 
Non-accrual
 
Total
Commercial
 
$
3,231,485

 
$
10,684,749

 
$
115,416

 
$
14,031,650

 
$
2,251,188

 
$
11,285,049

 
$
99,841

 
$
13,636,078

Commercial real estate
 
1,056,321

 
3,349,836

 
27,626

 
4,433,783

 
1,477,274

 
3,265,918

 
21,621

 
4,764,813

Residential mortgage
 
1,652,653

 
393,897

 
37,622

 
2,084,172

 
1,830,224

 
358,254

 
41,555

 
2,230,033

Personal
 
193,903

 
1,007,192

 
287

 
1,201,382

 
190,687

 
834,889

 
230

 
1,025,806

Total
 
$
6,134,362

 
$
15,435,674

 
$
180,951

 
$
21,750,987

 
$
5,749,373

 
$
15,744,110

 
$
163,247

 
$
21,656,730

Accruing loans past due (90 days)1
 
 

 
 

 
 

 
$
7,680

 
 

 
 

 
 

 
$
1,338

Foregone interest on nonaccrual loans
 
 
 
 
 
 
 
$
17,409

 
 
 
 
 
 
 
$
15,502

1 
Excludes residential mortgage loans guaranteed by agencies of the U.S. government.

At December 31, 2019, loans to businesses and individuals with collateral primarily located in Texas totaled $6.8 billion or 31% of the total loan portfolio. Loans to businesses and individuals with collateral primarily located in Oklahoma totaled $3.5 billion or 16% of our total loan portfolio. Loans to businesses and individuals with collateral primarily located in Colorado totaled $2.8 billion or 13% of our total loan portfolio. Loans for which the collateral location is not relevant, such as unsecured loans and reserve-based energy loans, are distributed by the borrower’s primary operating location. These geographic concentrations subject the loan portfolio to the general economic conditions within these areas. At December 31, 2018, loans to businesses and individuals with collateral primarily located in Texas totaled $6.4 billion or 30% of the loan portfolio and loans to businesses and individuals with collateral primarily located in Oklahoma totaled $3.5 billion or 16% of the loan portfolio.

Commercial

Commercial loans represent loans for working capital, facilities acquisition or expansion, purchases of equipment and other needs of commercial customers primarily located within our geographical footprint. Commercial loans are underwritten individually and represent on-going relationships based on a thorough knowledge of the customer, the customer’s industry and market. While commercial loans are generally secured by the customer’s assets including real property, inventory, accounts receivable, operating equipment, interest in mineral rights and other property and may also include personal guarantees of the owners and related parties, the primary source of repayment of the loans is the on-going cash flow from operations of the customer’s business. Inherent lending risk is centrally monitored on a continuous basis from underwriting throughout the life of the loan for compliance with commercial lending policies.

At December 31, 2019, commercial loans with collateral primarily located in Texas totaled $4.7 billion or 33% of the commercial loan portfolio segment. Commercial loans with collateral primarily located in Oklahoma totaled $2.0 billion or 14% of the commercial loan portfolio segment. Commercial loans with collateral primarily located in Colorado totaled $2.0 billion or 14% of the commercial loan portfolio segment. The commercial loan portfolio segment is further divided into loan classes. The services loan class totaled $3.1 billion or 14% of total loans. Approximately $1.5 billion of loans in the services class consisted of loans with individual balances of less than $10 million. Businesses included in the services class include commercial services, Native American tribal governments, financial services, entertainment and recreation and education. The energy loan class totaled $4.0 billion or 18% of total loans, including $3.1 billion of outstanding loans to energy producers. Approximately 58% of committed production loans were secured by properties primarily producing oil and 42% are secured by properties producing natural gas. The healthcare loan class totaled $3.0 billion or 14% of total loans. The healthcare loan class consists primarily of loans for the development and operation of senior housing and care facilities, including independent living, assisted living and skilled nursing. Healthcare also includes loans to hospitals and other medical service providers.

At December 31, 2018, commercial loans with collateral primarily located in Texas totaled $4.1 billion or 30% of the commercial loan portfolio segment and commercial loans with collateral primarily located in Oklahoma totaled $2.2 billion or 16% of the commercial loan portfolio segment. The energy loan class totaled $3.6 billion or 17% of total loans, including $2.9 billion of outstanding loans to energy producers. At December 31, 2018, approximately 57% of committed production loans were secured by properties primarily producing oil and 43% were secured by properties producing natural gas. The services loan class totaled $3.3 billion or 15% of total loans. Approximately $2.3 billion of loans in the services category consisted of loans with individual balances of less than $10 million. The healthcare loan class totaled $2.8 billion or 13% of total loans.

Commercial Real Estate

Commercial real estate loans are for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes primarily within our geographical footprint. We require collateral values in excess of the loan amounts, demonstrated cash flows in excess of expected debt service requirements, equity investment in the project and a portion of the project already sold, leased or permanent financing already secured. The expected cash flows from all significant new or renewed income producing property commitments are stress tested to reflect the risks in varying interest rates, vacancy rates and rental rates. As with commercial loans, inherent lending risks are centrally monitored on a continuous basis from underwriting throughout the life of the loan for compliance with applicable lending policies.

At December 31, 2019, 24% of commercial real estate loans are secured by properties primarily located in the Dallas and Houston areas of Texas. An additional 11% of commercial real estate loans are secured by properties located primarily in the Denver, Colorado metropolitan area. At December 31, 2018, 26% of commercial real estate loans were secured by properties in Texas, 9% of commercial real estate loans were secured by properties in Oklahoma.

Residential Mortgage and Personal

Residential mortgage loans provide funds for our customers to purchase or refinance their primary residence or to borrow against the equity in their home. Residential mortgage loans are secured by a first or second mortgage on the customer’s primary residence. Personal loans consist primarily of loans secured by the cash surrender value of insurance policies and marketable securities. It also includes direct loans secured by and for the purchase of automobiles, recreational and marine equipment as well as other unsecured loans. Residential mortgage and personal loans are made in accordance with underwriting policies. Credit scoring is assessed based on significant credit characteristics including credit history, residential and employment stability. Residential mortgage loans retained in the Company’s portfolio are primarily composed of various mortgage programs to support customer relationships including jumbo mortgage loans, non-builder construction loans and special loan programs for high net worth individuals and certain professionals. Jumbo loans may be fixed or variable rate and are fully amortizing. Jumbo loans generally conform to government sponsored entity standards, except that the loan size exceeds maximums required under these standards. These loans generally require a minimum FICO score of 720 and a maximum debt-to-income ratio (“DTI”) of 38%. Loan-to-value (“LTV”) ratios are tiered from 60% to 100%, depending on the market. Special mortgage programs include fixed and variable fully amortizing loans tailored to the needs of certain healthcare professionals. Variable rate loans are fully indexed at origination and may have fixed rates for 3 years to 10 years, then adjust annually thereafter. 

At December 31, 2019 and 2018, residential mortgage loans included $198 million and $191 million, respectively, of loans guaranteed by U.S. government agencies previously sold into GNMA mortgage pools. These loans either have been repurchased or are eligible to be repurchased by the Company when certain defined delinquency criteria are met. Although payments on these loans generally are past due more than 90 days, interest continues to accrue based on the government guarantee.

Home equity loans totaled $829 million at December 31, 2019 and $917 million at December 31, 2018. At December 31, 2019, 63% of the home equity loan portfolio was comprised of first lien loans and 37% of the home equity portfolio was comprised of junior lien loans. Junior lien loans were distributed 35% to amortizing term loans and 65% to revolving lines of credit. At December 31, 2018, 65% of the home equity portfolio was comprised of first lien loans and 35% of the home equity loan portfolio was comprised of junior lien loans. Junior lien loans were distributed 36% to amortizing term loans and 64% to revolving lines of credit. Home equity loans generally require a minimum FICO score of 700 and a maximum DTI of 40%. The maximum loan amount available for our home equity loan products is generally $400 thousand. Revolving loans have a 5 year revolving period followed by 15 year term of amortizing repayments. Interest-only home equity loans may not be extended for any additional revolving time. All other home equity loans may be extended at management's discretion for an additional 5 year revolving term subject to an update of certain credit information.

At December 31, 2019, 28% of residential mortgage loans are secured by properties located in Oklahoma, 28% of residential mortgage loans are secured by properties located in Texas and 15% of residential mortgage are secured by properties located in Colorado. At December 31, 2018, 28% of residential mortgage were secured by properties in Texas, 26% of residential mortgage loans were secured by properties in Oklahoma and 19% of residential mortgage loans are secured by properties in Colorado.

Credit Commitments
 
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At December 31, 2019, outstanding commitments totaled $11.1 billion. Because some commitments are expected to expire before being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. BOK Financial uses the same credit policies in making commitments as it does loans.

The amount of collateral obtained, if deemed necessary, is based upon management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Because the credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan commitments, BOK Financial uses the same credit policies in evaluating the creditworthiness of the customer. Additionally, BOK Financial uses the same evaluation process in obtaining collateral on standby letters of credit as it does for loan commitments. The term of these standby letters of credit is defined in each commitment and typically corresponds with the underlying loan commitment. At December 31, 2019, outstanding standby letters of credit totaled $646 million. Commercial letters of credit are used to facilitate customer trade transactions with the drafts being drawn when the underlying transaction is consummated. At December 31, 2019, outstanding commercial letters of credit totaled $1.2 million.

Allowances for Credit Losses

BOK Financial maintains an allowance for loan losses and an accrual for off-balance sheet credit risk. The accrual for off-balance sheet credit risk is maintained at a level that is appropriate to cover estimated losses associated with credit instruments that are not currently recognized as assets such as loan commitments, standby letters of credit or guarantees. As discussed in greater detail in Note 7, the Company also has separate accruals related to off-balance sheet credit risk related to residential mortgage loans previously sold with full or partial recourse and for residential mortgage loans sold to government sponsored agencies under standard representations and warranties.

The allowance for loan losses consists of specific allowances attributed to impaired loans that have not yet been charged down to amounts we expect to recover, general allowances for unimpaired loans based on estimated loss rates by loan class and nonspecific allowances based on general economic conditions, concentration in loans with large balances and other relevant factors.

The activity in the allowance for loan losses and the accrual for off-balance sheet credit risk related to loan commitments and standby letters of credit for the year ended December 31, 2019 is summarized as follows (in thousands):
 
 
Commercial
 
Commercial Real Estate
 
Residential Mortgage
 
Personal
 
Nonspecific Allowance
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
102,226

 
$
60,026

 
$
17,964

 
$
9,473

 
$
17,768

 
$
207,457

Provision for loan losses
 
57,125

 
(12,046
)
 
(3,838
)
 
3,537

 
(573
)
 
44,205

Loans charged off
 
(43,185
)
 
(1,161
)
 
(288
)
 
(6,343
)
 
—

 
(50,977
)
Recoveries
 
2,021

 
4,986

 
562

 
2,505

 
—

 
10,074

Ending balance
 
$
118,187

 
$
51,805

 
$
14,400

 
$
9,172

 
$
17,195

 
$
210,759

 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for off-balance sheet credit risk:
 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
1,655

 
$
52

 
$
52

 
$
31

 
$
—

 
$
1,790

Provision for off-balance sheet credit risk
 
(221
)
 
55

 
(8
)
 
(31
)
 
—

 
(205
)
Ending balance
 
$
1,434

 
$
107

 
$
44

 
$
—

 
$
—

 
$
1,585

 
 
 
 
 
 
 
 
 
 
 
 
 
Total provision for credit losses
 
$
56,904

 
$
(11,991
)
 
$
(3,846
)
 
$
3,506

 
$
(573
)
 
$
44,000




The activity in the allowance for loan losses and the accrual for off-balance sheet credit risk related to loan commitments and standby letters of credit for the year ended December 31, 2018 is summarized as follows (in thousands):

 
 
Commercial
 
Commercial Real Estate
 
Residential Mortgage
 
Personal
 
Nonspecific Allowance
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
124,269

 
$
56,621

 
$
18,451

 
$
9,124

 
$
22,217

 
$
230,682

Provision for loan losses
 
12,521

 
(147
)
 
(1,156
)
 
3,175

 
(4,449
)
 
9,944

Loans charged off
 
(37,880
)
 
—

 
(378
)
 
(5,325
)
 
—

 
(43,583
)
Recoveries
 
3,316

 
3,552

 
1,047

 
2,499

 
—

 
10,414

Ending balance
 
$
102,226

 
$
60,026

 
$
17,964

 
$
9,473

 
$
17,768

 
$
207,457

 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for off-balance sheet credit risk:
 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
3,644

 
$
45

 
$
43

 
$
2

 
$
—

 
$
3,734

Provision for off-balance sheet credit risk
 
(1,989
)
 
7

 
9

 
29

 
—

 
(1,944
)
Ending balance
 
$
1,655

 
$
52

 
$
52

 
$
31

 
$
—

 
$
1,790

 
 
 
 
 
 
 
 
 
 
 
 
 
Total provision for credit losses
 
$
10,532

 
$
(140
)
 
$
(1,147
)
 
$
3,204

 
$
(4,449
)
 
$
8,000



The activity in the allowance for loan losses and the accrual for off-balance sheet credit risk related to loan commitments and standby letters of credit for the year ended December 31, 2017 is summarized as follows (in thousands):

 
 
Commercial
 
Commercial Real Estate
 
Residential Mortgage
 
Personal
 
Nonspecific Allowance
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
140,213

 
$
50,749

 
$
18,224

 
$
8,773

 
$
28,200

 
$
246,159

Provision for loan losses
 
(595
)
 
4,008

 
116

 
2,964

 
(5,983
)
 
510

Loans charged off
 
(19,810
)
 
(76
)
 
(649
)
 
(5,064
)
 
—

 
(25,599
)
Recoveries
 
4,461

 
1,940

 
760

 
2,451

 
—

 
9,612

Ending balance
 
$
124,269

 
$
56,621

 
$
18,451

 
$
9,124

 
$
22,217

 
$
230,682

 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for off-balance sheet credit risk:
 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
11,063

 
$
123

 
$
50

 
$
8

 
$
—

 
$
11,244

Provision for off-balance sheet credit risk
 
(7,419
)
 
(78
)
 
(7
)
 
(6
)
 
—

 
(7,510
)
Ending balance
 
$
3,644

 
$
45

 
$
43

 
$
2

 
$
—

 
$
3,734

 
 
 
 
 
 
 
 
 
 
 
 
 
Total provision for credit losses
 
$
(8,014
)
 
$
3,930

 
$
109

 
$
2,958

 
$
(5,983
)
 
$
(7,000
)





The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2019 is as follows (in thousands):

 
 
Collectively Measured
for Impairment
 
Individually Measured
for Impairment
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
13,916,234

 
$
100,773

 
$
115,416

 
$
17,414

 
$
14,031,650

 
$
118,187

Commercial real estate
 
4,406,157

 
51,805

 
27,626

 
—

 
4,433,783

 
51,805

Residential mortgage
 
2,046,550

 
14,400

 
37,622

 
—

 
2,084,172

 
14,400

Personal
 
1,201,095

 
9,172

 
287

 
—

 
1,201,382

 
9,172

Total
 
21,570,036

 
176,150

 
180,951

 
17,414

 
21,750,987

 
193,564

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
17,195

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
21,570,036

 
$
176,150

 
$
180,951

 
$
17,414

 
$
21,750,987

 
$
210,759



The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2018 is as follows (in thousands):

 
 
Collectively Measured
for Impairment
 
Individually Measured
for Impairment
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
13,536,237

 
$
93,494

 
$
99,841

 
$
8,732

 
$
13,636,078

 
$
102,226

Commercial real estate
 
4,743,192

 
60,026

 
21,621

 
—

 
4,764,813

 
60,026

Residential mortgage
 
2,188,478

 
17,964

 
41,555

 
—

 
2,230,033

 
17,964

Personal
 
1,025,576

 
9,473

 
230

 
—

 
1,025,806

 
9,473

Total
 
21,493,483

 
180,957

 
163,247

 
8,732

 
21,656,730

 
189,689

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
17,768

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
21,493,483

 
$
180,957

 
$
163,247

 
$
8,732

 
$
21,656,730

 
$
207,457




Credit Quality Indicators

The Company utilizes loan class and risk grading as primary credit quality indicators. Substantially all commercial and commercial real estate loans and certain residential mortgage and personal loans are risk graded based on a quarterly evaluation of the borrowers’ ability to repay the loans. Certain commercial loans and most residential mortgage and personal loans are small, homogeneous pools that are not risk graded. 

The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at December 31, 2019 is as follows (in thousands):

 
 
Internally Risk Graded
 
Non-Graded
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
13,997,538

 
$
117,236

 
$
34,112

 
$
951

 
$
14,031,650

 
$
118,187

Commercial real estate
 
4,433,783

 
51,805

 
—

 
—

 
4,433,783

 
51,805

Residential mortgage
 
279,113

 
3,085

 
1,805,059

 
11,315

 
2,084,172

 
14,400

Personal
 
1,116,297

 
7,003

 
85,085

 
2,169

 
1,201,382

 
9,172

Total
 
19,826,731

 
179,129

 
1,924,256

 
14,435

 
21,750,987

 
193,564

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
17,195

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
19,826,731

 
$
179,129

 
$
1,924,256

 
$
14,435

 
$
21,750,987

 
$
210,759

 
The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at December 31, 2018 is as follows (in thousands):

 
 
Internally Risk Graded
 
Non-Graded
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
13,586,654

 
$
101,303

 
$
49,424

 
$
923

 
$
13,636,078

 
$
102,226

Commercial real estate
 
4,764,813

 
60,026

 
—

 
—

 
4,764,813

 
60,026

Residential mortgage
 
505,046

 
3,310

 
1,724,987

 
14,654

 
2,230,033

 
17,964

Personal
 
948,890

 
6,633

 
76,916

 
2,840

 
1,025,806

 
9,473

Total
 
19,805,403

 
171,272

 
1,851,327

 
18,417

 
21,656,730

 
189,689

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
17,768

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
19,805,403

 
$
171,272

 
$
1,851,327

 
$
18,417

 
$
21,656,730

 
$
207,457



Loans are considered to be performing if they are in compliance with the original terms of the agreement which is consistent with the regulatory guideline of “pass.” Performing also includes loans considered to be “other loans especially mentioned” by regulatory guidelines and all residential mortgage loans guaranteed by agencies of the U.S. government that continue to accrue interest based on criteria of the guarantor's programs. Other loans especially mentioned are currently performing in compliance with the original terms of the agreement but may have a potential weakness that deserves management's close attention, consistent with regulatory guidelines.

The risk grading process identified certain loans that have a well-defined weakness (e.g. inadequate debt service coverage or liquidity or marginal capitalization; repayment may depend on collateral or other risk mitigation) that may jeopardize liquidation of the debt and represent a greater risk due to deterioration in the financial condition of the borrower. This is consistent with the regulatory guideline for “substandard.” Because the borrowers are still performing in accordance with the original terms of the loan agreements, these loans were not placed in nonaccruing status. 

Nonaccruing loans represent loans for which full collection of principal and interest in accordance with the original terms of the loan agreements is uncertain. This is substantially the same criteria used to determine whether a loan is impaired and includes certain loans considered “substandard” and all loans considered “doubtful” by regulatory guidelines.

The following table summarizes the Company’s loan portfolio at December 31, 2019 by the risk grade categories (in thousands): 
 
 
Internally Risk Graded
 
Non-Graded
 
 
 
 
Performing
 
 
 
 
 
 
 
 
 
 
Pass
 
Other Loans Especially Mentioned
 
Accruing
Substandard
 
Nonaccrual
 
Performing
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
3,700,406

 
$
117,298

 
$
63,951

 
$
91,722

 
$
—

 
$
—

 
$
3,973,377

Services
 
3,050,946

 
29,943

 
33,791

 
7,483

 
—

 
—

 
3,122,163

Wholesale/retail
 
1,749,023

 
5,281

 
5,399

 
1,163

 
—

 
—

 
1,760,866

Manufacturing
 
623,219

 
18,214

 
13,883

 
10,133

 
—

 
—

 
665,449

Healthcare
 
2,995,514

 
13,117

 
20,805

 
4,480

 
—

 
—

 
3,033,916

Public finance
 
709,868

 
—

 
—

 
—

 
—

 
—

 
709,868

Other commercial and industrial
 
709,729

 
4,028

 
17,744

 
398

 
34,075

 
37

 
766,011

Total commercial
 
13,538,705

 
187,881

 
155,573

 
115,379

 
34,075

 
37

 
14,031,650

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Residential construction and land development
 
150,529

 
—

 
—

 
350

 
—

 
—

 
150,879

Retail
 
743,343

 
12,067

 
1,243

 
18,868

 
—

 
—

 
775,521

Office
 
923,202

 
5,177

 
—

 
—

 
—

 
—

 
928,379

Multifamily
 
1,257,005

 
1,604

 
95

 
6,858

 
—

 
—

 
1,265,562

Industrial
 
852,539

 
1,658

 
1,011

 
909

 
—

 
—

 
856,117

Other commercial real estate
 
455,045

 
1,639

 
—

 
641

 
—

 
—

 
457,325

Total commercial real estate
 
4,381,663

 
22,145

 
2,349

 
27,626

 
—

 
—

 
4,433,783

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Permanent mortgage
 
276,138

 
78

 
2,404

 
493

 
758,260

 
19,948

 
1,057,321

Permanent mortgages guaranteed by U.S. government agencies
 
—

 
—

 
—

 
—

 
191,694

 
6,100

 
197,794

Home equity
 
—

 
—

 
—

 
—

 
817,976

 
11,081

 
829,057

Total residential mortgage
 
276,138

 
78

 
2,404

 
493

 
1,767,930

 
37,129

 
2,084,172

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personal
 
1,116,196

 
45

 
—

 
56

 
84,853

 
232

 
1,201,382

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
19,312,702

 
$
210,149

 
$
160,326

 
$
143,554

 
$
1,886,858

 
$
37,398

 
$
21,750,987


The following table summarizes the Company’s loan portfolio at December 31, 2018 by the risk grade categories (in thousands): 
 
 
Internally Risk Graded
 
Non-Graded
 
 
 
 
Performing
 
 
 
 
 
 
 
 
 
 
Pass
 
Other Loans Especially Mentioned
 
Accruing Substandard
 
Nonaccrual
 
Performing
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
3,414,039

 
$
42,176

 
$
86,624

 
47,494

 
$
—

 
$
—

 
$
3,590,333

Services
 
3,167,203

 
49,761

 
32,661

 
8,567

 
—

 
—

 
3,258,192

Wholesale/retail
 
1,593,902

 
18,809

 
7,131

 
1,316

 
—

 
—

 
1,621,158

Manufacturing
 
668,438

 
30,934

 
22,230

 
8,919

 
—

 
—

 
730,521

Healthcare
 
2,730,121

 
14,920

 
37,698

 
16,538

 
—

 
—

 
2,799,277

Public finance
 
804,550

 
—

 
—

 
—

 
—

 
—

 
804,550

Other commercial and industrial
 
756,815

 
1,266

 
7,588

 
16,954

 
49,371

 
53

 
832,047

Total commercial
 
13,135,068

 
157,866

 
193,932

 
99,788

 
49,371

 
53

 
13,636,078

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

Residential construction and land development
 
148,234

 
—

 
—

 
350

 
—

 
—

 
148,584

Retail
 
885,588

 
11,926

 
1,289

 
20,279

 
—

 
—

 
919,082

Office
 
1,059,334

 
10,532

 
3,054

 
—

 
—

 
—

 
1,072,920

Multifamily
 
1,287,471

 
281

 
12

 
301

 
—

 
—

 
1,288,065

Industrial
 
776,898

 
—

 
1,208

 
—

 
—

 
—

 
778,106

Other commercial real estate
 
555,301

 
1,188

 
876

 
691

 
—

 
—

 
558,056

Total commercial real estate
 
4,712,826

 
23,927

 
6,439

 
21,621

 
—

 
—

 
4,764,813

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 
 
 

 
 

 
 

Permanent mortgage
 
269,678

 
52

 
9,730

 
1,991

 
819,199

 
21,960

 
1,122,610

Permanent mortgages guaranteed by U.S. government agencies
 
—

 
—

 
—

 
—

 
183,734

 
7,132

 
190,866

Home equity
 
223,298

 
—

 
296

 
—

 
682,491

 
10,472

 
916,557

Total residential mortgage
 
492,976

 
52

 
10,026

 
1,991

 
1,685,424

 
39,564

 
2,230,033

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personal
 
944,256

 
115

 
4,443

 
76

 
76,762

 
154

 
1,025,806

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
19,285,126

 
$
181,960

 
$
214,840

 
123,476

 
$
1,811,557

 
$
39,771

 
$
21,656,730





Impaired Loans

Loans are considered to be impaired when it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. This includes all nonaccruing loans, all loans modified in a troubled debt restructuring and all loans repurchased from GNMA pools.

A summary of impaired loans follows (in thousands):
 
As of December 31, 2019
 
Year Ended
 
 
 
Recorded Investment
 
 
 
December 31, 2019
 
Unpaid
Principal
Balance
 
Total
 
With No
Allowance
 
With Allowance
 
Related Allowance
 
Average Recorded
Investment
 
Interest Income Recognized
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
$
149,441

 
$
91,722

 
$
44,244

 
$
47,478

 
$
16,854

 
$
69,119

 
$
—

Services
10,923

 
7,483

 
6,301

 
1,182

 
240

 
5,854

 
—

Wholesale/retail
1,980

 
1,163

 
902

 
261

 
101

 
916

 
—

Manufacturing
10,848

 
10,133

 
9,914

 
219

 
219

 
9,144

 
—

Healthcare
13,774

 
4,480

 
4,480

 
—

 
—

 
7,798

 
—

Public finance
—

 
—

 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
8,227

 
435

 
435

 
—

 
—

 
8,568

 
—

Total commercial
195,193

 
115,416

 
66,276

 
49,140

 
17,414

 
101,399

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential construction and land development
1,306

 
350

 
350

 
—

 
—

 
350

 
—

Retail
20,265

 
18,868

 
18,868

 
—

 
—

 
19,573

 
—

Office
—

 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
6,858

 
6,858

 
6,858

 
—

 
—

 
3,580

 
—

Industrial
909

 
909

 
909

 
—

 
—

 
454

 
—

Other commercial real estate
801

 
641

 
641

 
—

 
—

 
666

 
—

Total commercial real estate
30,139

 
27,626

 
27,626

 
—

 
—

 
24,623

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 

 
 

 
 

 
 

 
 

 
 

 
 

Permanent mortgage
24,868

 
20,441

 
20,441

 
—

 
—

 
22,196

 
1,198

Permanent mortgage guaranteed by U.S. government agencies1
204,187

 
197,794

 
197,794

 
—

 
—

 
195,009

 
7,733

Home equity
12,967

 
11,081

 
11,081

 
—

 
—

 
10,776

 
—

Total residential mortgage
242,022

 
229,316

 
229,316

 
—

 
—

 
227,981

 
8,931

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personal
360

 
287

 
287

 
—

 
—

 
259

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
467,714

 
$
372,645

 
$
323,505

 
$
49,140

 
$
17,414

 
$
354,262

 
$
8,931

1 
All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At December 31, 2019, $6.1 million of these loans are nonaccruing and $192 million are accruing based on the guarantee by U.S. government agencies.

Generally, no interest income is recognized on impaired loans until all principal balances, including amounts charged-off, have been recovered.

 
As of December 31, 2018
 
Year Ended
 
 
 
 
Recorded Investment
 
 
 
December 31, 2018
 
 
Unpaid
Principal
Balance
 
Total
 
With No
Allowance
 
With Allowance
 
Related Allowance
 
Average Recorded
Investment
 
Interest Income Recognized
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
79,675

 
$
47,494

 
$
18,639

 
$
28,855

 
$
5,362

 
$
69,645

 
$
—

Services
 
13,437

 
8,567

 
8,489

 
78

 
74

 
4,509

 
—

Wholesale/retail
 
1,722

 
1,316

 
1,015

 
301

 
101

 
1,784

 
—

Manufacturing
 
10,055

 
8,919

 
8,673

 
246

 
246

 
7,249

 
—

Healthcare
 
24,319

 
16,538

 
10,563

 
5,975

 
2,949

 
14,297

 
—

Public finance
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
 
26,955

 
17,007

 
17,007

 
—

 
—

 
17,976

 
—

Total commercial
 
156,163

 
99,841

 
64,386

 
35,455

 
8,732

 
115,460

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential construction and land development
 
1,306

 
350

 
350

 
—

 
—

 
1,091

 
—

Retail
 
27,680

 
20,279

 
20,279

 
—

 
—

 
10,278

 
—

Office
 
—

 
—

 
—

 
—

 
—

 
137

 
—

Multifamily
 
301

 
301

 
301

 
—

 
—

 
151

 
—

Industrial
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other commercial real estate
 
851

 
691

 
691

 
—

 
—

 
581

 
—

Total commercial real estate
 
30,138

 
21,621

 
21,621

 
—

 
—

 
12,238

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Permanent mortgage
 
28,716

 
23,951

 
23,951

 
—

 
—

 
24,572

 
1,233

Permanent mortgage guaranteed by U.S. government agencies1
 
196,296

 
190,866

 
190,866

 
—

 
—

 
180,813

 
7,172

Home equity
 
12,196

 
10,472

 
10,472

 
—

 
—

 
11,774

 
—

Total residential mortgage
 
237,208

 
225,289

 
225,289

 
—

 
—

 
217,159

 
8,405

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Personal
 
278

 
230

 
230

 
—

 
—

 
250

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
423,787

 
$
346,981

 
$
311,526

 
$
35,455

 
$
8,732

 
$
345,107

 
$
8,405

1 
All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At December 31, 2018, $7.1 million of these loans are nonaccruing and $184 million are accruing based on the guarantee by U.S. government agencies.

Troubled Debt Restructurings

At December 31, 2019 the Company has $132 million in troubled debt restructurings (TDRs), of which $92 million are accruing residential mortgage loans guaranteed by U.S. government agencies. Approximately $57 million of TDRs are performing in accordance with the modified terms. The loans designated as TDRs had $18.6 million in charge offs during the year ended December 31, 2019.

At December 31, 2018, TDRs totaled $166 million, of which $86 million were accruing residential mortgage loans guaranteed by U.S. government agencies. Approximately $71 million of TDRs were performing. The loans designated as TDRs had $16.1 million in charge offs during the year ended December 31, 2018.

TDRs generally consist of interest rate concessions, payment stream concessions or a combination of concessions to distressed borrowers. During the year ended December 31, 2019, $37 million of loans were restructured. During the year ended December 31, 2018, $75 million of loans were restructured.


Nonaccrual & Past Due Loans

Past due status for all loan classes is based on the actual number of days since the last payment was due according to the contractual terms of the loans.

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2019 is as follows (in thousands):
 
 
 
 
Past Due
 
 
 
 
 
 
Current
 
30 to 59
Days
 
60 to 89
Days
 
90 Days
or More
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
3,881,244

 
$
401

 
10

 
$
—

 
$
91,722

 
$
3,973,377

Services
 
3,105,621

 
1,737

 
523

 
6,799

 
7,483

 
3,122,163

Wholesale/retail
 
1,758,878

 
712

 
113

 
—

 
1,163

 
1,760,866

Manufacturing
 
654,329

 
410

 
190

 
387

 
10,133

 
665,449

Healthcare
 
3,027,329

 
2,039

 
—

 
68

 
4,480

 
3,033,916

Public finance
 
707,638

 
2,230

 
—

 
—

 
—

 
709,868

Other commercial and industrial
 
764,390

 
414

 
772

 
—

 
435

 
766,011

Total commercial
 
13,899,429

 
7,943

 
1,608

 
7,254

 
115,416

 
14,031,650

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 
 
 

 
 

 
 

Residential construction and land development
 
147,379

 
3,093

 
—

 
57

 
350

 
150,879

Retail
 
756,653

 
—

 
—

 
—

 
18,868

 
775,521

Office
 
928,379

 
—

 
—

 
—

 
—

 
928,379

Multifamily
 
1,258,704

 
—

 
—

 
—

 
6,858

 
1,265,562

Industrial
 
855,208

 
—

 
—

 
—

 
909

 
856,117

Other commercial real estate
 
454,253

 
1,827

 
250

 
354

 
641

 
457,325

Total commercial real estate
 
4,400,576

 
4,920

 
250

 
411

 
27,626

 
4,433,783

 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 
 
 

 
 

 
 

Permanent mortgage
 
1,034,716

 
2,011

 
153

 
—

 
20,441

 
1,057,321

Permanent mortgages guaranteed by U.S. government agencies
 
46,898

 
24,203

 
18,187

 
102,406

 
6,100

 
197,794

Home equity
 
814,325

 
3,343

 
308

 
—

 
11,081

 
829,057

Total residential mortgage
 
1,895,939

 
29,557

 
18,648

 
102,406

 
37,622

 
2,084,172

 
 
 
 
 
 
 
 
 
 
 
 
 
Personal
 
1,196,362

 
4,664

 
54

 
15

 
287

 
1,201,382

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
21,392,306

 
$
47,084

 
20,560

 
$
110,086

 
$
180,951

 
$
21,750,987

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2018 is as follows (in thousands):
 
 
 
 
Past Due
 
 
 
 
 
 
Current
 
30 to 59
Days
 
60 to 89
Days
 
90 Days
or More
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
3,542,839

 
$
—

 
—

 
$
—

 
$
47,494

 
$
3,590,333

Services
 
3,237,578

 
6,009

 
6,038

 
—

 
8,567

 
3,258,192

Wholesale/retail
 
1,619,290

 
515

 
37

 
—

 
1,316

 
1,621,158

Manufacturing
 
721,204

 
392

 
6

 
—

 
8,919

 
730,521

Healthcare
 
2,781,944

 
241

 
—

 
554

 
16,538

 
2,799,277

Public finance
 
804,550

 
—

 
—

 
—

 
—

 
804,550

Other commercial and industrial
 
814,489

 
518

 
25

 
8

 
17,007

 
832,047

Total commercial
 
13,521,894

 
7,675

 
6,106

 
562

 
99,841

 
13,636,078

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 
 
 

 
 

 
 

Residential construction and land development
 
147,705

 
249

 
280

 
—

 
350

 
148,584

Retail
 
884,424

 
14,379

 
—

 
—

 
20,279

 
919,082

Office
 
1,072,920

 
—

 
—

 
—

 
—

 
1,072,920

Multifamily
 
1,287,483

 
281

 
—

 
—

 
301

 
1,288,065

Industrial
 
776,898

 
1,208

 
—

 
—

 
—

 
778,106

Other commercial real estate
 
556,239

 
412

 
—

 
714

 
691

 
558,056

Total commercial real estate
 
4,725,669

 
16,529

 
280

 
714

 
21,621

 
4,764,813

 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 
 
 

 
 

 
 

Permanent mortgage
 
1,095,097

 
3,196

 
366

 
—

 
23,951

 
1,122,610

Permanent mortgages guaranteed by U.S. government agencies
 
37,459

 
24,369

 
16,345

 
105,561

 
7,132

 
190,866

Home equity
 
904,572

 
1,102

 
352

 
59

 
10,472

 
916,557

Total residential mortgage
 
2,037,128

 
28,667

 
17,063

 
105,620

 
41,555

 
2,230,033

 
 
 
 
 
 
 
 
 
 
 
 
 
Personal
 
1,024,298

 
479

 
796

 
3

 
230

 
1,025,806

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
21,308,989

 
$
53,350

 
24,245

 
$
106,899

 
$
163,247

 
$
21,656,730