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Loans and Allowances for Credit Losses
 6 Months Ended
Jun. 30, 2020
Loans and Leases Receivable, Net Amount [Abstract]  
Loans [Text Block]
Loans

Loans are either secured or unsecured based on the type of loan and the financial condition of the borrower. Repayment is generally expected from cash flow or proceeds from the sale of selected assets of the borrower. BOK Financial is exposed to risk of loss on loans due to the borrower’s difficulties, which may arise from any number of factors, including problems within the respective industry or local economic conditions. Access to collateral, in the event of borrower default, is reasonably assured through adherence to applicable lending laws and through sound lending standards and credit review procedures. Accounting policies for all loans, excluding residential mortgage loans guaranteed by U.S. government agencies, are as follows.

Interest is accrued at the applicable interest rate on the principal amount outstanding. Loans are placed on nonaccruing status when, in the opinion of management, full collection of principal or interest is uncertain. Internally risk graded loans are individually evaluated for nonaccruing status quarterly. Non-risk graded loans are generally placed on nonaccruing status when more than 90 days past due or within 60 days of being notified of the borrower's bankruptcy filing. Interest previously accrued but not collected is charged against interest income when the loan is placed on nonaccruing status. Accrued but not paid interest receivable is included in Receivables in the Consolidated Balance Sheets. Payments on nonaccruing loans are applied to principal or recognized as interest income, according to management’s judgment as to the collectability of principal. Loans may be returned to accruing status when, in the opinion of management, full collection of principal and interest, including principal previously charged off, is probable based on improvements in the borrower’s financial condition or a sustained period of performance.

For loans acquired with no evidence of credit deterioration, discounts are accreted on either an individual basis for loans with unique characteristics or on a pool basis for groups of homogeneous loans. Accretion is discontinued when a loan with an individually attributed discount is placed on nonaccruing status.

Loans to borrowers experiencing financial difficulties may be modified in troubled debt restructurings ("TDRs"). Primarily all TDRs are classified as nonaccruing, excluding loans guaranteed by U.S. government agencies. Modifications generally consist of extension of payment terms or interest rate concessions and may result either voluntarily through negotiations with the borrower or involuntarily through court order. Generally, principal and accrued but unpaid interest is not voluntarily forgiven. In accordance with the guidance provided by the banking agencies on April 7, 2020 concerning loan modifications for customers impacted by the COVID-19 pandemic, short-term (six months or less) payment deferrals made in good faith to borrowers current prior to the relief are not considered TDRs.

Performing loans may be renewed under the current collateral value, debt service ratio and other underwriting standards. Nonaccruing loans may be renewed and will remain classified as nonaccruing. 

Occasionally, loans, other than residential mortgage loans, may be held for sale in order to manage credit concentration. These loans are carried at the lower of cost or fair value with gains or losses recognized in Other gains (losses), net in the Consolidated Statements of Earnings.

All loans are charged off when the loan balance or a portion of the loan balance is no longer supported by the paying capacity of the borrower or when the required cash flow is reduced in a TDR. The charge-off amount is determined through a quarterly evaluation of available cash resources and collateral value and charge-offs are taken in the quarter in which the loss is identified. Non-risk graded loans that are past due between 60 days and 180 days, based on the loan product type, are charged off. Loans to borrowers whose personal obligation has been discharged through Chapter 7 bankruptcy proceedings are charged off within 60 days of notice of the bankruptcy filing, regardless of payment status.

Loan origination and commitment fees and direct loan acquisition and origination costs are deferred and amortized as an adjustment to yield over the life of the loan or over the commitment period, as applicable. Amortization does not anticipate loan prepayments. Net unamortized fees are recognized in full at time of payoff.
Qualifying residential mortgage loans guaranteed by U.S. government agencies have been sold into GNMA pools. Under certain performance conditions specified in government programs, the Company may have the right, but not the obligation to repurchase loans from GNMA pools. These loans no longer qualify for sale accounting and are recognized in the Consolidated Balance Sheets. The carrying value of these loans is reduced based on an estimate of the expected cash flows discounted at the original note rate plus a liquidity spread. Guaranteed loans may be modified in TDRs in accordance with U.S. government agency guidelines. Interest continues to accrue based on the modified rate. Guaranteed loans may either be resold into GNMA pools after a performance period specified by the programs or foreclosed and conveyed to the guarantors.

Loans are disaggregated into portfolio segments and further disaggregated into classes. The portfolio segment is the level at which the Company develops and documents a systematic method for determining its allowance for credit losses. Classes are a further disaggregation of portfolio segments based on the risk characteristics of the loans and the Company’s method for monitoring and assessing credit risk. 

Portfolio segments of the loan portfolio are as follows (in thousands):
 June 30, 2020
Fixed
Rate		Variable
Rate		Non-accrualTotal
Commercial3,215,865  10,740,646  201,999  $14,158,510  
Commercial real estate
1,029,544  3,510,644  13,956  4,554,144  
Paycheck protection program2,081,428  —  —  2,081,428  
Loans to individuals2,038,990  1,283,377  39,441  3,361,808  
Total$8,365,827  $15,534,667  $255,396  $24,155,890  


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 June 30, 2020, outstanding commitments totaled $10.3 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 June 30, 2020, outstanding standby letters of credit totaled $693 million. 

Allowances for Credit Losses and Accrual for Off-balance Sheet Credit Risk from Unfunded Loans Commitments

BOK Financial’s accounting policies have changed significantly with the adoption of CECL as of January 1, 2020. Prior periods are not restated. Prior to January 1, 2020, general allowances and nonspecific allowances were based on incurred credit losses in accordance with accounting policies disclosed in Note 1 of the Consolidated Financial Statements included in the 2019 Form 10-K.

The allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments represent the portion of the amortized cost basis of loans that we do not expect to collect over the asset’s contractual life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The appropriateness of the allowance for credit losses, including industry and product adjustments, is assessed quarterly by a senior management Allowance Committee. This review is based on an on-going evaluation of the estimated expected credit losses in the portfolio and on unused commitments to provide financing. A well-documented methodology has been developed and is applied by an independent Credit Administration department to assure consistency across the Company.
The allowance for loan losses consists of specific allowances attributed to certain individual loans, generally nonaccruing loans, with dissimilar risk characteristics that have not yet been charged down to amounts we expect to recover and general allowances for estimated credit losses on pools of loans that share similar risk characteristics.

When full collection of principal or interest is uncertain, the loan’s risk characteristics have changed, and we exclude the loan from the general allowance pool, typically designating it as nonaccruing. For these loans, a specific allowance reflects the expected credit loss.

We measure specific allowances for loans excluded from the general allowance pool by an evaluation of estimated future cash flows discounted at the loans initial effective interest rate or the fair value of collateral for certain collateral dependent loans. For a non-collateral dependent loan, the specific allowance is the amount by which the loan’s amortized cost basis exceeds its net realizable value. We measure the specific allowance for collateral dependent loans as the amount by which the loan’s amortized costs basis exceeds its fair value. When repayment is expected to be provided substantially through the sale of collateral, we deduct estimated selling costs from the collateral’s fair value. Generally, third party appraisals that conform to Uniform Standards of Professional Appraisal Practice serve as the basis for the fair value of real property held as collateral. These appraised values are on an “as-is” basis and generally are not adjusted by the Company. We obtain updated appraisals at least annually or more frequently if market conditions indicate collateral values may have declined. For energy loans, our internal staff of engineers generally determines collateral value of mineral rights based on projected cash flows from proven oil and gas reserves under existing economic and operating conditions. For real property held as collateral for other loans, third party appraisals that conform to Uniform Standards of Professional Appraisal Practice generally serve as the basis for the fair value. These appraised values are on an “as-is” basis and generally are not adjusted by the Company. We obtain updated appraisals at least annually or more frequently if market conditions indicate collateral values may have declined. Our special assets staff generally determines the value of other collateral based on projected liquidation cash flows under current market conditions. We evaluate collateral values and available cash resources quarterly. Historical statistics may be used to estimate specific allowances in limited situations, such as when a collateral dependent loan is removed from the general allowance pool near the end of a reporting period until an appraisal of collateral value is received or a full assessment of future cash flows is completed.

General allowances estimate expected credit losses on pools of loans sharing similar risk characteristics that are expected to occur over the loan’s estimated remaining life. The loan’s estimated remaining life represents the contractual term adjusted for amortization, estimates of prepayments, and borrower-owned extension options. Approximately 90 percent of the committed dollars in the loan portfolio is risk graded loans with general allowance model inputs that include probability of default, loss given default, and exposure at default. Probability of default is based on the migration of loans from performing to nonperforming using historical life of loan analysis periods. Loss given default is based on the aggregate losses incurred, net of estimated recoveries. Exposure at default represents an estimate of the outstanding amount of credit exposure at the time a default may occur.

Charge-off migration is used to calculate the general allowance for the majority of non-risk graded loans to individuals. The expected credit loss on less than 10 percent of the committed dollars in the portfolio is calculated using charge-off migration.

The expected credit loss on approximately 1 percent of the committed dollars in the portfolio is calculated using a non-modeled approach. Specifically, the calculation applies a long-term net charge-off rate to the loan balances, adjusted for the weighted average remaining maturity of each portfolio.
        
In estimating the expected credit losses for general allowances on performing risk-graded loans, each portfolio class is assigned relevant economic loss drivers which best explain variations in portfolio net loss rates. The probability of default estimates for each portfolio class are adjusted for current and forecasted economic conditions. The result is applied to the exposure at default and loss given default to calculate the lifetime expected credit loss estimate. Selection of relevant economic loss drivers is re-evaluated periodically and involves statistical analysis as well as management judgment. The unemployment rate factors significantly in the allowance for loan losses calculation, affecting commercial and loans to individuals segments. Other primary factors impacting the commercial portfolio include BBB corporate spreads, real gross domestic product growth rate, and energy commodity prices. The primary commercial real estate variables are vacancy rate and BBB corporate spreads. In addition to the unemployment rate, the forecast for loans to individuals is tied to home price index. The forecasts may include regional economic factors when localized conditions diverge from national conditions.
An Economic Forecast Committee, consisting of senior management with members largely independent of the allowance process develops a twelve-month forward-looking forecast for the relevant economic loss drivers. Management develops these forecasts based on external data as well as a view of future economic conditions, which may include adjustments for regional conditions. The forecast includes three economic scenarios and probability weights for each scenario. The base forecast represents management's view of the most likely outcome, while the downside forecast reflects reasonably possible worsening economic conditions, and the upside forecast projects reasonably possible improving conditions.

At the end of the one-year reasonable and supportable forecast period, we transition from shorter-term expected losses to long-term loss averages for the loan’s estimated remaining life. The difference between short-term loss forecasts and long-term loss averages is run-off over the reversion horizon, up to three years, depending on the forecasted economic scenarios.

General allowances also consider the estimated impact of factors that are not captured in the modeled results or historical experience. These qualitative adjustments, determined by the Allowance Committee, may increase or decrease the allowance estimated by modeled results. Factors not captured in modeled results or historical experience may include for example, new lines of business, market conditions that have not been previously encountered, observed changes in credit risk that are not yet reflected in macro-economic factors, or economic conditions that impact loss given default assumptions.

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 that are not unconditionally cancelable by the bank. This accrual is included in other liabilities in the Consolidated Balance Sheets. The appropriateness of the accrual is determined in the same manner as the allowance for loan losses, with the added consideration of commitment usage over the remaining life for those loans that the bank can not unconditionally cancel.

A provision for credit losses is charged against or credited to earnings in amounts necessary to maintain an appropriate Allowance for Credit Losses. Recoveries of loans previously charged off are added to the allowance when received.

The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit is summarized as follows (in thousands):
Three Months Ended
June 30, 2020
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:     
Beginning balance$213,438  $51,461  $—  $50,412  $—  $315,311  
Provision for loan losses111,153  17,221  —  5,991  —  134,365  
Loans charged off(14,487) (1) —  (1,082) —  (15,570) 
Recoveries of loans previously charged off
318  75  —  1,098  —  1,491  
Ending Balance$310,422  $68,756  $—  $56,419  —  $435,597  
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$14,040  $12,575  $—  $1,899  $—  $28,514  
Provision for off-balance sheet credit risk
542  3,844  —  19  —  4,405  
Ending Balance$14,582  $16,419  $—  $1,918  $—  $32,919  
Six Months Ended
June 30, 2020
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$118,187  $51,805  $—  $23,572  $17,195  $210,759  
Transition adjustment33,681  (4,620) —  13,943  (17,195) 25,809  
Beginning balance, adjusted151,868  47,185  —  37,515  —  236,568  
Provision for loan losses188,876  22,336  —  19,117  —  230,329  
Loans charged off(31,102) (887) —  (2,498) —  (34,487) 
Recoveries780  122  —  2,285  —  3,187  
Ending balance$310,422  $68,756  $—  $56,419  $—  $435,597  
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$1,434  $107  $—  $44  $—  $1,585  
Transition adjustment10,144  11,660  —  1,748  —  23,552  
Beginning balance, adjusted11,578  11,767  —  1,792  —  25,137  
Provision for off-balance sheet credit losses
3,004  4,652  —  126  —  7,782  
Ending balance$14,582  $16,419  $—  $1,918  $—  $32,919  

Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to the anticipated impact of the on-going COVID-19 pandemic, and other assumptions, required a provision of $54.6 million during the second quarter of 2020. All other changes totaled $84.2 million, $14.4 million related to changes in impairment, $55.7 million related to risk grading and other portfolio changes and net charge-offs of $14.1 million.

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at June 30, 2020 is as follows (in thousands):
 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$13,956,511  $286,639  $201,999  $23,783  $14,158,510  $310,422  
Commercial real estate4,540,188  68,216  13,956  540  4,554,144  68,756  
Paycheck protection program2,081,428  —  —  —  2,081,428  —  
Loans to individuals3,322,367  56,419  39,441  —  3,361,808  56,419  
Total23,900,494  411,274  255,396  24,323  24,155,890  435,597  
Credit Quality Indicators

The Company utilizes risk grading as primary credit quality indicators as it influences the probability of default which is a key attribute in the expected credit losses calculation. Substantially all commercial as well as commercial real estate loans and certain loans to individuals are risk graded based on a quarterly evaluation of the borrowers’ ability to repay the loans. Certain commercial loans and most loans to individuals are small, homogeneous pools that are not risk-graded. The credit quality of these loans is based on past due days in accordance with regulatory guidelines.

We have included in the credit quality indicator “pass” loans that are in compliance with the original terms of the agreement and currently exhibit no factors that cause management to have doubts about the borrowers’ ability to remain in compliance with the original terms of the agreement, which is consistent with the regulatory guideline of “pass.” This also includes past due residential mortgages that are guaranteed by agencies of the U.S. government that continue to accrue interest based on criteria of the guarantors’ programs.

Other loans especially mentioned ("Special Mention") 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. Non-graded loans 30 to 59 days past due are categorized as Special Mention.

The risk grading process identified certain loans that have a well-defined weakness (for example, 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 remain on accruing status. Non-graded loans 60 to 89 days past due are categorized as Accruing Substandard.

Nonaccruing loans represent loans for which full collection of principal and interest is uncertain. This includes certain loans considered “substandard” and all loans considered “doubtful” by regulatory guidelines. Non-graded loans 90 or more days past due are categorized as Nonaccrual.

Probability of default is lowest for pass graded loans and increases for each credit quality indicator, Special Mention, and Accruing Substandard.

Vintage represents the year of origination, except for revolving loans which are considered in aggregate. Loans that were once revolving but have converted to term loans without additional underwriting appear in a separate vintage column.
The following table summarizes the Company’s loan portfolio at June 30, 2020 by the risk grade categories and vintage (in thousands): 
Origination Year
20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Energy
Pass$23,119  $62,250  $94,216  $8,344  $1,427  $2,908  $2,664,680  $—  $2,856,944  
Special Mention—  —  9,720  —  —  —  493,719  —  503,439  
Accruing Substandard
—  —  194  —  49  —  450,559  —  450,802  
Nonaccrual—  6,586  15,496  —  —  38,325  102,582  —  162,989  
Total energy
23,119  68,836  119,626  8,344  1,476  41,233  3,711,540  —  3,974,174  
Healthcare
Pass212,781  609,757  641,607  489,096  248,094  767,193  245,123  —  3,213,651  
Special Mention—  27,500  —  3,714  —  13,771  3,515  —  48,500  
Accruing Substandard
—  3,176  7,746  973  161  11,491  —  —  23,547  
Nonaccrual—  18  183  —  —  2,935  509  —  3,645  
Total healthcare212,781  640,451  649,536  493,783  248,255  795,390  249,147  —  3,289,343  
Services
Pass335,961  475,608  437,812  366,772  400,480  857,564  743,258  673  3,618,128  
Special Mention—  3,919  1,474  170  4,513  3,626  35,203  —  48,905  
Accruing Substandard
98  12,077  26,814  12,393  8,123  4,753  27,558  —  91,816  
Nonaccrual—  2,978  —  8,647  1,153  7,529  725  —  21,032  
Total services336,059  494,582  466,100  387,982  414,269  873,472  806,744  673  3,779,881  
General business
Pass256,821  485,956  359,249  256,403  147,056  251,326  1,258,843  2,671  3,018,325  
Special Mention—  10,196  763  11,244  941  4,046  3,404  —  30,594  
Accruing Substandard
21  13,906  13,989  2,353  6,216  5,206  10,165  4  51,860  
Nonaccrual1,675  3,713  5,168  1,938  1,315  140  369  15  14,333  
Total general business
258,517  513,771  379,169  271,938  155,528  260,718  1,272,781  2,690  3,115,112  
Total commercial
830,476  1,717,640  1,614,431  1,162,047  819,528  1,970,813  6,040,212  3,363  14,158,510  
Commercial real estate:
Pass345,439  1,131,573  1,037,584  536,047  378,852  852,020  234,148  —  4,515,663  
Special Mention—  —  —  12,200  1,622  3,283  100  —  17,205  
Accruing Substandard
—  —  —  7,228  —  65  27  —  7,320  
Nonaccrual—  —  —  232  7,477  803  5,444  —  13,956  
Total commercial real estate
345,439  1,131,573  1,037,584  555,707  387,951  856,171  239,719  —  4,554,144  
Origination Year
20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Paycheck protection program:
Pass2,081,428  —  —  —  —  —  —  —  2,081,428  
Total paycheck protection program2,081,428  —  —  —  —  —  —  —  2,081,428  
Loans to individuals:
Residential mortgage
Pass226,396  191,344  161,193  187,649  196,218  438,056  349,610  26,679  1,777,145  
Special Mention—  —  2,011  192  12  437  329  —  2,981  
Accruing Substandard
—  —  123  —  40  4  —  51  218  
Nonaccrual—  588  1,614  554  1,142  26,339  2,170  691  33,098  
Total residential mortgage
226,396  191,932  164,941  188,395  197,412  464,836  352,109  27,421  1,813,442  
Residential mortgage guaranteed by U.S. government agencies
Pass751  6,794  19,678  24,184  46,676  218,076  —  —  316,159  
Nonaccrual—  —  244  —  —  5,866  —  —  6,110  
Total residential mortgage guaranteed by U.S. government agencies
751  6,794  19,922  24,184  46,676  223,942  —  —  322,269  
Personal:
Pass123,394  246,327  83,000  115,562  71,036  99,322  479,958  1,738  1,220,337  
Special Mention—  50  16  28  55  5,087  10  —  5,246  
Accruing Substandard
19  229  11  6  —  —  16  —  281  
Nonaccrual—  22  60  29  47  44  31  —  233  
Total personal
123,413  246,628  83,087  115,625  71,138  104,453  480,015  1,738  1,226,097  
Total loans to individuals
350,560  445,354  267,950  328,204  315,226  793,231  832,124  29,159  3,361,808  
Total loans
$3,607,903  $3,294,567  $2,919,965  $2,045,958  $1,522,705  $3,620,215  $7,112,055  $32,522  $24,155,890  
Nonaccruing Loans

A summary of nonaccruing loans at June 30, 2020 follows (in thousands): 
As of June 30, 2020
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Energy$162,989  $85,171  $77,818  $20,863  
Healthcare3,645  3,645  —  —  
Services21,032  15,503  5,529  2,574  
General business14,333  13,014  1,319  346  
Total commercial201,999  117,333  84,666  23,783  
Commercial real estate13,956  8,511  5,445  540  
Loans to individuals:    
Residential mortgage33,098  33,098  —  —  
Residential mortgage guaranteed by U.S. government agencies
6,110  6,110  —  —  
Personal233  233  —  —  
Total loans to individuals39,441  39,441  —  —  
Total$255,396  $165,285  $90,111  $24,323  


Troubled Debt Restructurings

At June 30, 2020 the Company had $166 million in troubled debt restructurings ("TDRs"), of which $118 million were accruing residential mortgage loans guaranteed by U.S. government agencies, $21 million were nonaccruing energy loans with a related specific allowance of $3.7 million and $20 million were nonaccruing residential mortgage loans with no specific allowance necessary. Approximately $55 million of TDRs were performing in accordance with the modified terms.

At December 31, 2019, the Company had $132 million in TDRs, of which $92 million were accruing residential mortgage loans guaranteed by U.S. government agencies. Approximately $57 million of TDRs were performing in accordance with the modified terms.

TDRs generally consist of interest rate concessions, payment stream concessions or a combination of concessions to distressed borrowers. During the three and six months ended June 30, 2020, $35 million and $59 million of loans were restructured and $7.7 million and $9.7 million of loans designated as TDRs were charged off. During the three and six months ended June 30, 2019, $21 million and $38 million of loans were restructured and $10 thousand and $12.6 million of loans designated as TDRs were charged off.
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, as modified for short-term payment deferral forbearance.

A summary of loans currently performing and past due as of June 30, 2020 is as follows (in thousands):
  Past Due Past Due 90 Days or More and Accruing
 Current30 to 59
Days		60 to 89 Days90 Days
or More		Total
Commercial:    
Energy$3,893,481  $32,439  $3,889  $44,365  $3,974,174  $—  
Healthcare3,284,305  1,216  177  3,645  3,289,343  —  
Services3,754,841  7,357  4,440  13,243  3,779,881  632  
General business3,087,741  9,235  1,169  16,967  3,115,112  9,833  
Total commercial14,020,368  50,247  9,675  78,220  14,158,510  10,465  
Commercial real estate4,536,541  2,749  5,874  8,980  4,554,144  469  
Paycheck protection program2,081,428  —  —  —  2,081,428  —  
Loans to individuals:    
Residential mortgage1,797,197  7,254  1,360  7,631  1,813,442  42  
Residential mortgage guaranteed by U.S. government agencies
60,121  20,494  15,908  225,746  322,269  221,201  
Personal1,225,469  477  58  93  1,226,097  16  
Total loans to individuals3,082,787  28,225  17,326  233,470  3,361,808  221,259  
Total$23,721,124  $81,221  $32,875  $320,670  $24,155,890  $232,193  

Following is disclosure of loans and the combined allowance for loan losses and accrual for off-balance sheet credit losses under the previous incurred loss model.

Portfolio segments of the loan portfolio are as follows (in thousands):
 December 31, 2019
Fixed
Rate		Variable
Rate		Non-accrualTotal
Commercial$3,231,485  $10,684,749  $115,416  $14,031,650  
Commercial real estate
1,056,321  3,349,836  27,626  4,433,783  
Residential mortgage1,652,653  393,897  37,622  2,084,172  
Personal193,903  1,007,192  287  1,201,382  
Total$6,134,362  $15,435,674  $180,951  $21,750,987  
Accruing loans past due (90 days)1
   $7,680  
1Excludes residential mortgage loans guaranteed by agencies of the U.S. government
The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit is summarized as follows (in thousands):
Three Months Ended
June 30, 2019
 CommercialCommercial Real EstateResidential MortgagePersonalNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$103,577  $58,134  $15,668  $8,783  $19,178  $205,340  
Provision for loan losses13,771  (8,173) 1  1,660  (2,341) 4,918  
Loans charged off(11,385) (118) (94) (1,630) —  (13,227) 
Recoveries434  4,345  149  575  —  5,503  
Ending balance$106,397  $54,188  $15,724  $9,388  $16,837  $202,534  
Allowance for off-balance sheet credit losses:      
Beginning balance1,725  48  47  1  —  $1,821  
Provision for off-balance sheet credit losses
17  68  (3) —  —  82  
Ending balance$1,742  $116  $44  $1  $—  $1,903  
Total provision for credit losses$13,788  $(8,105) $(2) $1,660  $(2,341) $5,000  

Six Months Ended
June 30, 2019
 CommercialCommercial Real EstateResidential MortgagePersonalNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$102,226  $60,026  $17,964  $9,473  $17,768  $207,457  
Provision for loan losses24,879  (10,177) (2,407) 1,523  (931) 12,887  
Loans charged off(21,853) (118) (136) (2,895) —  (25,002) 
Recoveries1,145  4,457  303  1,287  —  7,192  
Ending balance$106,397  $54,188  $15,724  $9,388  $16,837  $202,534  
Allowance for off-balance sheet credit losses:      
Beginning balance$1,655  $52  $52  $31  $—  $1,790  
Provision for off-balance sheet credit losses
87  64  (8) (30) —  113  
Ending balance$1,742  $116  $44  $1  $—  $1,903  
Total provision for credit losses$24,966  $(10,113) $(2,415) $1,493  $(931) $13,000  
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 InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$13,916,234  $100,773  $115,416  $17,414  $14,031,650  $118,187  
Commercial real estate4,406,157  51,805  27,626  —  4,433,783  51,805  
Residential mortgage2,046,550  14,400  37,622  —  2,084,172  14,400  
Personal1,201,095  9,172  287  —  1,201,382  9,172  
Total21,570,036  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 risk graded and non-risk graded loans at December 31, 2019 is as follows (in thousands):
 Internally Risk GradedNon-GradedTotal
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$13,997,538  $117,236  $34,112  $951  $14,031,650  $118,187  
Commercial real estate4,433,783  51,805  —  —  4,433,783  51,805  
Residential mortgage279,113  3,085  1,805,059  11,315  2,084,172  14,400  
Personal1,116,297  7,003  85,085  2,169  1,201,382  9,172  
Total19,826,731  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 following table summarizes the Company’s loan portfolio at December 31, 2019 by the risk grade categories (in thousands): 
 Internally Risk GradedNon-Graded 
Performing
 PassOther Loans Especially MentionedAccruing SubstandardNonaccrualPerformingNonaccrualTotal
Commercial:      
Energy$3,700,406  $117,298  $63,951  $91,722  $—  $—  $3,973,377  
Services3,050,946  29,943  33,791  7,483  —  —  3,122,163  
Wholesale/retail1,749,023  5,281  5,399  1,163  —  —  1,760,866  
Manufacturing623,219  18,214  13,883  10,133  —  —  665,449  
Healthcare2,995,514  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 commercial13,538,705  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  
Retail743,343  12,067  1,243  18,868  —  —  775,521  
Office923,202  5,177  —  —  —  —  928,379  
Multifamily1,257,005  1,604  95  6,858  —  —  1,265,562  
Industrial852,539  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 mortgage276,138  78  2,404  493  758,260  19,948  1,057,321  
Permanent mortgage 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  
Personal1,116,196  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  
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 generally includes all nonaccruing loans, all loans modified in a TDR and all loans repurchased from GNMA pools.

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

A summary of impaired loans at December 31, 2019 follows (in thousands): 
  Recorded Investment
 Unpaid
Principal
Balance		TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:     
Energy$149,441  $91,722  $44,244  $47,478  $16,854  
Services10,923  7,483  6,301  1,182  240  
Wholesale/retail1,980  1,163  902  261  101  
Manufacturing10,848  10,133  9,914  219  219  
Healthcare13,774  4,480  4,480  —  —  
Public finance—  —  —  —  —  
Other commercial and industrial8,227  435  435  —  —  
Total commercial195,193  115,416  66,276  49,140  17,414  
Commercial real estate:     
Residential construction and land development1,306  350  350  —  —  
Retail20,265  18,868  18,868  —  —  
Office—  —  —  —  —  
Multifamily6,858  6,858  6,858  —  —  
Industrial909  909  909  —  —  
Other commercial real estate801  641  641  —  —  
Total commercial real estate30,139  27,626  27,626  —  —  
Residential mortgage:     
Permanent mortgage24,868  20,441  20,441  —  —  
Permanent mortgage guaranteed by U.S. government agencies1
204,187  197,794  197,794  —  —  
Home equity12,967  11,081  11,081  —  —  
Total residential mortgage242,022  229,316  229,316  —  —  
Personal360  287  287  —  —  
Total$467,714  $372,645  $323,505  $49,140  $17,414  
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, the majority were accruing based on the guarantee by U.S. government agencies.
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 
 Current30 to 59
Days		60 to 89 Days90 Days
or More		NonaccrualTotal
Commercial:    
Energy$3,881,244  $401  $10  $—  91,722  $3,973,377  
Services3,105,621  1,737  523  6,799  7,483  3,122,163  
Wholesale1,758,878  712  113  —  1,163  1,760,866  
Manufacturing654,329  410  190  387  10,133  665,449  
Healthcare3,027,329  2,039  —  68  4,480  3,033,916  
Public finance707,638  2,230  —  —  —  709,868  
Other commercial and industrial764,390  414  772  —  435  766,011  
Total commercial13,899,429  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  
Retail756,653  —  —  —  18,868  775,521  
Office928,379  —  —  —  —  928,379  
Multifamily1,258,704  —  —  —  6,858  1,265,562  
Industrial855,208  —  —  —  909  856,117  
Other commercial real estate454,253  1,827  250  354  641  457,325  
Total commercial real estate4,400,576  4,920  250  411  27,626  4,433,783  
Residential Mortgage:
Permanent mortgage1,034,716  2,011  153  —  20,441  1,057,321  
Permanent mortgage guaranteed by U.S. government agencies
46,898  24,203  18,187  102,406  6,100  197,794  
Home equity814,325  3,343  308  —  11,081  829,057  
Total residential mortgage1,895,939  29,557  18,648  102,406  37,622  2,084,172  
Personal1,196,362  4,664  54  15  287  1,201,382  
Total$21,392,306  $47,084  $20,560  $110,086  $180,951  $21,750,987