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Loans and Allowances for Credit Losses
 9 Months Ended
Sep. 30, 2021
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. Payment deferrals up to six months are generally considered to be short-term modifications. Generally, principal and accrued but unpaid interest is not voluntarily forgiven.

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. Internally risk graded loans are evaluated quarterly 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. We do not expect to receive all principal and interest based on the loan's contractual terms. A portion of the principal balance continues to be guaranteed; however, interest accrues at a curtailed rate as specified in the programs. 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):
 September 30, 2021December 31, 2020
Fixed
Rate		Variable
Rate		Non-accrualTotalFixed
Rate		Variable
Rate		Non-accrualTotal
Commercial$3,337,034 $8,757,432 $80,674 $12,175,140 $3,174,203 $9,736,173 $167,159 $13,077,535 
Commercial real estate
968,223 3,127,446 21,223 4,116,892 1,047,486 3,623,806 27,246 4,698,538 
Paycheck protection program536,052 — — 536,052 1,682,310 — — 1,682,310 
Loans to individuals2,086,645 1,393,157 40,050 3,519,852 2,174,874 1,333,975 40,288 3,549,137 
Total$6,927,954 $13,278,035 $141,947 $20,347,936 $8,078,873 $14,693,954 $234,693 $23,007,520 


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 September 30, 2021, outstanding commitments totaled $12.0 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 September 30, 2021, outstanding standby letters of credit totaled $638 million. 

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

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 loan's 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 cost 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 factors may increase or decrease modeled results by amounts determined by the Allowance Committee. 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
September 30, 2021
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:     
Beginning balance$198,303 $70,540 $— $43,047 $— $311,890 
Provision for loan losses(15,996)(9,418)— (1,981)— (27,395)
Loans charged off(6,979)(1,422)— (1,183)— (9,584)
Recoveries of loans previously charged off
832 228 — 709 — 1,769 
Ending Balance$176,160 $59,928 $— $40,592 — $276,680 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$10,094 $12,348 $— $1,845 $— $24,287 
Provision for off-balance sheet credit risk
2,772 2,294 — (114)— 4,952 
Ending Balance$12,866 $14,642 $— $1,731 $— $29,239 
Nine Months Ended
September 30, 2021
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$254,934 $86,558 $— $47,148 $— $388,640 
Provision for loan losses(44,331)(24,579)— (5,319)— (74,229)
Loans charged off(38,826)(2,485)— (3,482)— (44,793)
Recoveries4,383 434 — 2,245 — 7,062 
Ending balance$176,160 $59,928 $— $40,592 $— $276,680 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$14,422 $20,571 $— $1,928 $— $36,921 
Transition adjustment— — — — — — 
Beginning balance, adjusted14,422 20,571 — 1,928 — 36,921 
Provision for off-balance sheet credit losses
(1,556)(5,929)— (197)— (7,682)
Ending balance$12,866 $14,642 $— $1,731 $— $29,239 
Three Months Ended
September 30, 2020
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:     
Beginning balance$310,422 $68,756 $— $56,419 $— $435,597 
Provision for loan losses2,108 3,118 — 1,383 — 6,609 
Loans charged off(25,319)(413)— (929)— (26,661)
Recoveries of loans previously charged off
3,066 114 — 1,052 — 4,232 
Ending Balance$290,277 $71,575 $— $57,925 — $419,777 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$14,582 $16,419 $— $1,918 $— $32,919 
Transition adjustment— — — — — — 
Beginning balance, adjusted14,582 16,419 — 1,918 — 32,919 
Provision for off-balance sheet credit risk
(2,618)(2,426)— 94 — (4,950)
Ending Balance$11,964 $13,993 $— $2,012 — $27,969 
Nine Months Ended
September 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 losses190,984 25,454 — 20,500 — 236,938 
Loans charged off(56,421)(1,300)— (3,427)— (61,148)
Recoveries of loans previously charged off3,846 236 — 3,337 — 7,419 
Ending Balance$290,277 $71,575 $— $57,925 — $419,777 
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 risk386 2,226 — 220 — 2,832 
Ending Balance$11,964 $13,993 $— $2,012 — $27,969 

Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to continued strength in commodity prices and a continued optimistic outlook for economic growth in GDP and labor markets resulted in a $12.3 million negative provision for credit losses related to lending activities during the third quarter of 2021. Changes in the loan portfolio characteristics, including specific impairment and losses, loan balances, risk grading and changes in payment profile resulted in a $10.1 million negative provision for credit losses related to lending activities.

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at September 30, 2021 is as follows (in thousands):
 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$12,094,466 $168,325 $80,674 $7,835 $12,175,140 $176,160 
Commercial real estate4,095,669 57,579 21,223 2,349 4,116,892 59,928 
Paycheck protection program536,052 — — — 536,052 — 
Loans to individuals3,479,802 40,592 40,050 — 3,519,852 40,592 
Total$20,205,989 $266,496 $141,947 $10,184 $20,347,936 $276,680 
The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at December 31, 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$12,910,376 $235,882 $167,159 $19,052 $13,077,535 $254,934 
Commercial real estate4,671,292 83,169 27,246 3,389 4,698,538 86,558 
Paycheck protection program1,682,310 — — — 1,682,310 — 
Loans to individuals3,508,849 47,148 40,288 — 3,549,137 47,148 
Total$22,772,827 $366,199 $234,693 $22,441 $23,007,520 $388,640 

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 September 30, 2021 by the risk grade categories and vintage (in thousands): 
Origination Year
20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Energy
Pass$154,735 $38,019 $33,135 $14,559 $4,987 $19,327 $2,306,845 $— $2,571,607 
Special Mention565 1,607 — — — — 750 — 2,922 
Accruing Substandard
— 23,065 1,230 1,100 — 6 168,629 — 194,030 
Nonaccrual— 20,722 1,570 — — 9,409 13,799 — 45,500 
Total energy
155,300 83,413 35,935 15,659 4,987 28,742 2,490,023 — 2,814,059 
Healthcare
Pass383,462 593,123 576,153 521,156 329,791 720,489 149,119 — 3,273,293 
Special Mention6,883 — 15,746 — 5,834 — 5 — 28,468 
Accruing Substandard
— — 27,292 7,304 — 10,775 — — 45,371 
Nonaccrual— — — — — — 509 — 509 
Total healthcare390,345 593,123 619,191 528,460 335,625 731,264 149,633 — 3,347,641 
Services
Pass430,099 501,607 334,009 298,665 240,892 847,065 584,197 415 3,236,949 
Special Mention453 412 2,779 49 3,318 11,085 2,027 203 20,326 
Accruing Substandard
26 76 10,575 16,418 1,839 5,603 5,896 — 40,433 
Nonaccrual— 4,529 — 230 14,220 6,232 503 — 25,714 
Total services430,578 506,624 347,363 315,362 260,269 869,985 592,623 618 3,323,422 
General business
Pass457,490 246,333 295,089 212,899 188,407 230,442 1,002,036 2,025 2,634,721 
Special Mention232 1,380 66 1,469 3,937 318 8,697 — 16,099 
Accruing Substandard
365 1,230 2,458 7,961 8,694 6,906 2,633 — 30,247 
Nonaccrual— 1,582 4,235 1,240 770 531 462 131 8,951 
Total general business
458,087 250,525 301,848 223,569 201,808 238,197 1,013,828 2,156 2,690,018 
Total commercial
1,434,310 1,433,685 1,304,337 1,083,050 802,689 1,868,188 4,246,107 2,774 12,175,140 
Commercial real estate:
Pass374,519 805,102 1,104,404 466,778 336,206 822,068 140,050 33 4,049,160 
Special Mention— — — 6,683 10,943 6,760 — — 24,386 
Accruing Substandard
— — — 13,288 4,480 4,355 — — 22,123 
Nonaccrual— — 8,244 — — 12,979 — — 21,223 
Total commercial real estate
374,519 805,102 1,112,648 486,749 351,629 846,162 140,050 33 4,116,892 
Origination Year
20212020201920182017PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Paycheck protection program:
Pass450,844 85,208 — — — — — — 536,052 
Total paycheck protection program450,844 85,208 — — — — — — 536,052 
Loans to individuals:
Residential mortgage
Pass325,951 478,460 93,556 67,648 80,208 333,932 313,255 22,305 1,715,315 
Special Mention— — 82 13 — 283 248 — 626 
Accruing Substandard
— — — — — 126 479 23 628 
Nonaccrual758 1,446 341 1,051 688 23,457 2,097 836 30,674 
Total residential mortgage
326,709 479,906 93,979 68,712 80,896 357,798 316,079 23,164 1,747,243 
Residential mortgage guaranteed by U.S. government agencies
Pass348 10,308 24,350 30,941 35,341 266,510 — — 367,798 
Nonaccrual— — 82 244 143 8,719 — — 9,188 
Total residential mortgage guaranteed by U.S. government agencies
348 10,308 24,432 31,185 35,484 275,229 — — 376,986 
Personal:
Pass154,436 199,604 183,461 69,075 97,119 136,837 553,702 887 1,395,121 
Special Mention14 15 23 10 — 45 5 — 112 
Accruing Substandard
— — 180 1 — — 21 — 202 
Nonaccrual19 9 10 25 38 61 26 — 188 
Total personal
154,469 199,628 183,674 69,111 97,157 136,943 553,754 887 1,395,623 
Total loans to individuals
481,526 689,842 302,085 169,008 213,537 769,970 869,833 24,051 3,519,852 
Total loans
$2,741,199 $3,013,837 $2,719,070 $1,738,807 $1,367,855 $3,484,320 $5,255,990 $26,858 $20,347,936 
The following table summarizes the Company’s loan portfolio at December 31, 2020 by the risk grade categories and vintage (in thousands): 
Origination Year
20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Energy
Pass$112,614 $51,863 $89,346 $7,178 $1,148 $7,956 $2,548,663 $— $2,818,768 
Special Mention— — — — — — 202,590 — 202,590 
Accruing Substandard
24,000 1,363 1,453 — 12,667 — 283,294 — 322,777 
Nonaccrual21,076 2,607 — — — 21,064 80,312 — 125,059 
Total energy
157,690 55,833 90,799 7,178 13,815 29,020 3,114,859 — 3,469,194 
Healthcare
Pass536,745 615,221 638,302 422,834 234,399 658,286 147,132 — 3,252,919 
Special Mention— 27,500 — — — 8,282 5 — 35,787 
Accruing Substandard
— — 1,191 929 132 11,387 — — 13,639 
Nonaccrual— 18 183 — — 2,935 509 — 3,645 
Total healthcare536,745 642,739 639,676 423,763 234,531 680,890 147,646 — 3,305,990 
Services
Pass534,853 436,384 372,867 307,374 373,785 683,936 665,491 682 3,375,372 
Special Mention150 9,057 389 291 2,038 2,000 3,063 — 16,988 
Accruing Substandard
429 6,380 26,008 6,027 5,030 7,954 38,797 — 90,625 
Nonaccrual4,833 448 — 12,590 1,049 6,138 540 — 25,598 
Total services540,265 452,269 399,264 326,282 381,902 700,028 707,891 682 3,508,583 
General business
Pass419,756 394,985 310,273 236,222 103,987 186,600 1,055,878 2,316 2,710,017 
Special Mention197 4,519 9,713 7,803 2,511 3,159 2,483 19 30,404 
Accruing Substandard
1,432 3,069 6,694 10,935 10,042 3,729 4,449 140 40,490 
Nonaccrual1,675 3,728 4,863 1,436 530 107 477 41 12,857 
Total general business
423,060 406,301 331,543 256,396 117,070 193,595 1,063,287 2,516 2,793,768 
Total commercial
1,657,760 1,557,142 1,461,282 1,013,619 747,318 1,603,533 5,033,683 3,198 13,077,535 
Commercial real estate:
Pass725,577 1,211,338 954,226 489,193 314,899 722,475 223,131 38 4,640,877 
Special Mention— — 259 12,311 2,725 5,831 — — 21,126 
Accruing Substandard
— — — 4,410 — 4,852 27 — 9,289 
Nonaccrual— 8,300 — 232 7,468 11,246 — — 27,246 
Total commercial real estate
725,577 1,219,638 954,485 506,146 325,092 744,404 223,158 38 4,698,538 
Origination Year
20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Paycheck protection program:
Pass1,682,310 — — — — — — — 1,682,310 
Total paycheck protection program1,682,310 — — — — — — — 1,682,310 
Loans to individuals:
Residential mortgage
Pass564,325 149,832 120,875 124,930 158,801 348,292 335,259 24,553 1,826,867 
Special Mention33 11 2,094 — 59 318 950 10 3,475 
Accruing Substandard
— — 51 — — 34 272 76 433 
Nonaccrual648 104 1,658 784 2,010 22,415 3,835 774 32,228 
Total residential mortgage
565,006 149,947 124,678 125,714 160,870 371,059 340,316 25,413 1,863,003 
Residential mortgage guaranteed by U.S. government agencies
Pass4,859 33,880 34,464 43,099 58,264 226,380 — — 400,946 
Nonaccrual— — 545 — 309 6,887 — — 7,741 
Total residential mortgage guaranteed by U.S. government agencies
4,859 33,880 35,009 43,099 58,573 233,267 — — 408,687 
Personal:
Pass219,873 200,580 76,246 100,229 64,104 102,126 510,571 1,510 1,275,239 
Special Mention39 55 66 — 469 31 965 — 1,625 
Accruing Substandard
11 214 10 — — — 29 — 264 
Nonaccrual28 17 57 73 50 49 45 — 319 
Total personal
219,951 200,866 76,379 100,302 64,623 102,206 511,610 1,510 1,277,447 
Total loans to individuals
789,816 384,693 236,066 269,115 284,066 706,532 851,926 26,923 3,549,137 
Total loans
$4,855,463 $3,161,473 $2,651,833 $1,788,880 $1,356,476 $3,054,469 $6,108,767 $30,159 $23,007,520 
Nonaccruing Loans

A summary of nonaccruing loans at September 30, 2021 follows (in thousands): 
As of September 30, 2021
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Energy$45,500 $40,998 $4,502 $2,417 
Healthcare509 509 — — 
Services25,714 18,512 7,202 4,918 
General business8,951 5,526 3,425 500 
Total commercial80,674 65,545 15,129 7,835 
Commercial real estate21,223 12,979 8,244 2,349 
Loans to individuals:    
Residential mortgage30,674 30,674 — — 
Residential mortgage guaranteed by U.S. government agencies
9,188 9,188 — — 
Personal188 188 — — 
Total loans to individuals40,050 40,050 — — 
Total$141,947 $118,574 $23,373 $10,184 


A summary of nonaccruing loans at December 31, 2020 follows (in thousands): 
As of December 31, 2020
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Energy$125,059 $76,633 $48,426 $16,478 
Healthcare3,645 3,645 — — 
Services25,598 20,810 4,788 2,574 
General business12,857 12,857 — — 
Total commercial167,159 113,945 53,214 19,052 
Commercial real estate27,246 13,645 13,601 3,389 
Loans to individuals:    
Residential mortgage32,228 32,228 — — 
Residential mortgage guaranteed by U.S. government agencies
7,741 7,741 — — 
Personal319 319 — — 
Total loans to individuals40,288 40,288 — — 
Total$234,693 $167,878 $66,815 $22,441 
Troubled Debt Restructurings

At September 30, 2021 the Company had $241 million in troubled debt restructurings ("TDRs"), of which $179 million were accruing residential mortgage loans guaranteed by U.S. government agencies, $16 million were nonaccruing residential mortgage loans with no specific allowance necessary and $14 million were commercial real estate loans with a related specific allowance of $2.3 million. Approximately $133 million of TDRs were performing in accordance with the modified terms.

At December 31, 2020, the Company had $187 million in TDRs, of which $152 million were accruing residential mortgage loans guaranteed by U.S. government agencies. Approximately $95 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 nine months ended September 30, 2021, $18 million and $81 million of loans were restructured and $712 thousand and $994 thousand of loans designated as TDRs were charged off. During the three and nine months ended September 30, 2020, $36 million and $76 million of loans were restructured and $6.4 million and $16.1 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 September 30, 2021 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$2,803,488 $— $— $10,571 $2,814,059 $— 
Healthcare3,346,740 404 — 497 3,347,641 — 
Services3,309,658 3,092 1,648 9,024 3,323,422 — 
General business2,678,878 1,732 1,821 7,587 2,690,018 200 
Total commercial12,138,764 5,228 3,469 27,679 12,175,140 200 
Commercial real estate4,105,791 1,505 — 9,596 4,116,892 — 
Paycheck protection program536,052 — — — 536,052 — 
Loans to individuals:    
Residential mortgage1,731,942 6,147 2,269 6,885 1,747,243 23 
Residential mortgage guaranteed by U.S. government agencies
204,901 35,894 18,028 118,163 376,986 111,835 
Personal1,395,445 74 37 67 1,395,623 — 
Total loans to individuals3,332,288 42,115 20,334 125,115 3,519,852 111,858 
Total$20,112,895 $48,848 $23,803 $162,390 $20,347,936 $112,058 
A summary of loans currently performing and past due as of December 31, 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$3,410,995 $12,735 $4,050 $41,414 $3,469,194 $— 
Healthcare3,302,345 — — 3,645 3,305,990 — 
Services3,489,423 3,278 177 15,705 3,508,583 326 
General business2,776,038 1,206 6,277 10,247 2,793,768 4,495 
Total commercial12,978,801 17,219 10,504 71,011 13,077,535 4,821 
Commercial real estate4,672,279 276 5,310 20,673 4,698,538 5,126 
Paycheck protection program1,682,310 — — — 1,682,310 — 
Loans to individuals:    
Residential mortgage1,849,304 5,812 837 7,050 1,863,003 181 
Residential mortgage guaranteed by U.S. government agencies
262,102 41,389 22,041 83,155 408,687 78,349 
Personal1,273,702 3,317 90 338 1,277,447 241 
Total loans to individuals3,385,108 50,518 22,968 90,543 3,549,137 78,771 
Total$22,718,498 $68,013 $38,782 $182,227 $23,007,520 $88,718