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Loans and Allowances for Credit Losses
 9 Months Ended
Sep. 30, 2023
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.

Modifications of loans to existing borrowers generally consist of interest rate reductions, extension of payment terms, or a combination of these. Modifications may arise 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. A change to the allowance for credit losses is generally not recorded upon modification because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance methodology.

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 modification. The charge-off amount is determined through a quarterly evaluation of available cash resources and collateral values. 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 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, 2023December 31, 2022
Fixed
Rate		Variable
Rate		Non-accrualTotalFixed
Rate		Variable
Rate		Non-accrualTotal
Commercial$3,536,353 $11,112,788 $70,698 $14,719,839 $3,392,422 $10,759,780 $60,297 $14,212,499 
Commercial real estate
848,042 4,385,840 7,418 5,241,300 874,716 3,715,491 16,570 4,606,777 
Loans to individuals2,229,750 1,491,660 41,469 3,762,879 2,099,165 1,593,779 44,930 3,737,874 
Total$6,614,145 $16,990,288 $119,585 $23,724,018 $6,366,303 $16,069,050 $121,797 $22,557,150 

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, 2023, outstanding commitments totaled $14.4 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, 2023, outstanding standby letters of credit totaled $760 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 ongoing 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, for real property held as collateral for loans, 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 a 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, 2023
 CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:    
Beginning balance$143,269 $76,347 $43,098 $262,714 
Provision for loan losses1,158 11,152 3,621 15,931 
Loans charged off(6,769)(2,238)(1,586)(10,593)
Recoveries of loans previously charged off
273 3,167 622 4,062 
Ending balance$137,931 $88,428 $45,755 $272,114 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$20,294 $37,681 $1,965 $59,940 
Provision for off-balance sheet credit risk
(2,179)(5,076)(81)(7,336)
Ending balance$18,115 $32,605 $1,884 $52,604 
Nine Months Ended
September 30, 2023
 CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:    
Beginning balance$131,586 $57,648 $46,470 $235,704 
Provision for loan losses12,908 35,878 1,627 50,413 
Loans charged off(9,578)(8,446)(4,285)(22,309)
Recoveries of loans previously charged off
3,015 3,348 1,943 8,306 
Ending balance$137,931 $88,428 $45,755 $272,114 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$18,246 $40,490 $2,183 $60,919 
Provision for off-balance sheet credit risk
(131)(7,885)(299)(8,315)
Ending balance$18,115 $32,605 $1,884 $52,604 
Three Months Ended
September 30, 2022
 CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:    
Beginning balance$137,562 $62,997 $40,555 $241,114 
Provision for loan losses3,158 (4,415)2,368 1,111 
Loans charged off(75)— (1,691)(1,766)
Recoveries of loans previously charged off
721 7 581 1,309 
Ending balance$141,366 $58,589 $41,813 $241,768 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$15,839 $24,670 $1,741 $42,250 
Provision for off-balance sheet credit risk
939 12,826 295 14,060 
Ending balance$16,778 $37,496 $2,036 $56,310 
Nine Months Ended
September 30, 2022
CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:
Beginning balance$162,056 $58,553 $35,812 $256,421 
Provision for loan losses(17,428)138 8,276 (9,014)
Loans charged off(6,162)(269)(4,508)(10,939)
Recoveries of loans previously charged off2,900 167 2,233 5,300 
Ending balance$141,366 $58,589 $41,813 $241,768 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$13,812 $17,442 $1,723 $32,977 
Provision for off-balance sheet credit risk2,966 20,054 313 23,333 
Ending balance$16,778 $37,496 $2,036 $56,310 
A $7.0 million provision for credit losses was necessary for the third quarter of 2023, reflecting modest improvement in the economic outlook and the impact of forecasted higher energy prices during the forecast period, offset by loan growth and the impact of a more challenging national commercial real estate environment, particularly related to office.

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at September 30, 2023 is as follows (in thousands):
 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$14,649,141 $136,285 $70,698 $1,646 $14,719,839 $137,931 
Commercial real estate5,233,882 88,428 7,418 — 5,241,300 88,428 
Loans to individuals3,721,410 45,755 41,469 — 3,762,879 45,755 
Total$23,604,433 $270,468 $119,585 $1,646 $23,724,018 $272,114 
The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at December 31, 2022 is as follows (in thousands):

 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$14,152,202 $127,566 $60,297 $4,020 $14,212,499 $131,586 
Commercial real estate4,590,207 56,098 16,570 1,550 4,606,777 57,648 
Loans to individuals3,692,944 46,470 44,930 — 3,737,874 46,470 
Total$22,435,353 $230,134 $121,797 $5,570 $22,557,150 $235,704 

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 identifies 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, 2023 by the risk grade categories and vintage (in thousands): 
Origination Year
20232022202120202019PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Energy
Pass$192,614 $106,593 $45,795 $8,190 $10,463 $12,518 $3,064,120 $— $3,440,293 
Special Mention— — — — — — 13,950 — 13,950 
Accruing Substandard— — — — — — 16,800 — 16,800 
Nonaccrual— — — — — 108 19,451 — 19,559 
Total energy192,614 106,593 45,795 8,190 10,463 12,626 3,114,321 — 3,490,602 
Loans charged-off, year-to-date— — — — — — — — — 
Healthcare
Pass485,617 903,150 573,317 464,170 338,944 947,581 268,806 16 3,981,601 
Special Mention— — 18,719 — 2,421 18,072 980 — 40,192 
Accruing Substandard— 589 214 6,957 — 10,046 1,700 — 19,506 
Nonaccrual— — — — 25,797 10,525 5,513 — 41,835 
Total healthcare485,617 903,739 592,250 471,127 367,162 986,224 276,999 16 4,083,134 
Loans charged-off, year-to-date— — — — — — — — — 
Services
Pass707,494 541,539 412,450 247,092 131,269 723,365 759,327 870 3,523,406 
Special Mention— 13,051 1,836 1,531 596 2,733 1,421 — 21,168 
Accruing Substandard— 5,752 730 1,716 2,333 3,446 4,957 33 18,967 
Nonaccrual— — 2,161 337 — — 322 — 2,820 
Total services707,494 560,342 417,177 250,676 134,198 729,544 766,027 903 3,566,361 
Loans charged-off, year-to-date— — 3,360 — — — 1,577 — 4,937 
General business
Pass667,802 504,364 262,660 148,645 140,220 319,113 1,396,919 2,196 3,441,919 
Special Mention9,277 15,059 9,103 1,115 287 8,389 7,959 — 51,189 
Accruing Substandard3,956 37,025 1,440 37 — — 37,693 — 80,151 
Nonaccrual— — — — — 54 6,385 44 6,483 
Total general business681,035 556,448 273,203 149,797 140,507 327,556 1,448,956 2,240 3,579,742 
Loans charged-off, year-to-date— — 4,598 2 — 17 14 10 4,641 
Total commercial2,066,760 2,127,122 1,328,425 879,790 652,330 2,055,950 5,606,303 3,159 14,719,839 
Commercial real estate:
Pass361,934 1,730,828 1,211,694 480,710 555,902 723,783 139,721 — 5,204,572 
Special Mention— — — — — 19,212 — — 19,212 
Accruing Substandard— — 79 — — 10,019 — — 10,098 
Nonaccrual— — — — 7,263 155 — — 7,418 
Total commercial real estate361,934 1,730,828 1,211,773 480,710 563,165 753,169 139,721 — 5,241,300 
Loans charged-off, year-to-date— — — — — 8,446 — — 8,446 
Origination Year
20232022202120202019PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Loans to individuals:
Residential mortgage
Pass320,680 332,368 348,782 354,284 57,944 252,027 366,136 22,277 2,054,498 
Special Mention— 359 262 1,339 — 152 3,144 88 5,344 
Accruing Substandard— — — — — 45 101 51 197 
Nonaccrual— 1,298 2,223 2,771 723 20,728 2,196 1,014 30,953 
Total residential mortgage320,680 334,025 351,267 358,394 58,667 272,952 371,577 23,430 2,090,992 
Loans charged-off, year-to-date— — 51 4 — 14 1 — 70 
Residential mortgage guaranteed by U.S. government agencies
Pass— 1,624 2,030 4,749 6,752 135,502 — — 150,657 
Nonaccrual— — — 280 376 9,779 — — 10,435 
Total residential mortgage guaranteed by U.S. government agencies— 1,624 2,030 5,029 7,128 145,281 — — 161,092 
Personal:
Pass161,514 227,726 167,566 137,761 133,304 158,721 523,513 195 1,510,300 
Special Mention100 30 103 22 2 — — — 257 
Accruing Substandard— — — 2 157 — — — 159 
Nonaccrual— 27 4 9 4 12 23 — 79 
Total personal161,614 227,783 167,673 137,794 133,467 158,733 523,536 195 1,510,795 
Loans charged-off, year-to-date— 60 40 41 — 4,042 26 6 4,215 
Total loans to individuals482,294 563,432 520,970 501,217 199,262 576,966 895,113 23,625 3,762,879 
Total loans$2,910,988 $4,421,382 $3,061,168 $1,861,717 $1,414,757 $3,386,085 $6,641,137 $26,784 $23,724,018 
The following table summarizes the Company's loan portfolio at December 31, 2022 by the risk grade categories and vintage (in thousands): 
Origination Year
20222021202020192018PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Energy
Pass$157,745 $76,951 $30,284 $12,783 $5,992 $4,980 $3,104,906 $— $3,393,641 
Accruing Substandard
— — — 664 385 683 28,018 — 29,750 
Nonaccrual— — — — — 159 1,240 — 1,399 
Total energy157,745 76,951 30,284 13,447 6,377 5,822 3,134,164 — 3,424,790 
Healthcare
Pass932,097 604,886 476,854 404,204 464,989 618,163 245,898 20 3,747,111 
Special Mention— — — 20,071 — 18,859 4 — 38,934 
Accruing Substandard
— — — — — 14,304 3,634 — 17,938 
Nonaccrual— — — 26,480 6,373 8,181 — — 41,034 
Total healthcare932,097 604,886 476,854 450,755 471,362 659,507 249,536 20 3,845,017 
Services
Pass821,785 496,510 286,085 193,481 156,736 696,300 722,371 639 3,373,907 
Special Mention502 5,139 989 771 894 1,345 8,668 — 18,308 
Accruing Substandard
— — — 2,459 43 2,789 17,665 122 23,078 
Nonaccrual— 5,570 449 — — 2,389 7,820 — 16,228 
Total services822,287 507,219 287,523 196,711 157,673 702,823 756,524 761 3,431,521 
General business
Pass725,894 361,839 198,274 172,878 139,140 283,694 1,570,536 2,329 3,454,584 
Special Mention17,759 13,065 208 71 7 2,291 7,094 26 40,521 
Accruing Substandard
— 2,169 66 4,130 4,680 3,287 94 4 14,430 
Nonaccrual— — 1,052 14 72 5 485 8 1,636 
Total general business743,653 377,073 199,600 177,093 143,899 289,277 1,578,209 2,367 3,511,171 
Total commercial2,655,782 1,566,129 994,261 838,006 779,311 1,657,429 5,718,433 3,148 14,212,499 
Commercial real estate:
Pass1,188,483 1,158,002 552,616 641,102 247,625 633,304 161,616 — 4,582,748 
Accruing Substandard
— — — 7,459 — — — — 7,459 
Nonaccrual— — — — — 16,570 — — 16,570 
Total commercial real estate1,188,483 1,158,002 552,616 648,561 247,625 649,874 161,616 — 4,606,777 
Origination Year
20222021202020192018PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Loans to individuals:
Residential mortgage
Pass354,497 373,190 393,002 63,142 40,525 260,625 352,126 22,176 1,859,283 
Special Mention— 81 42 — 142 388 527 87 1,267 
Accruing Substandard— — 187 — — 138 117 1 443 
Nonaccrual32 1,656 2,717 362 1,904 20,139 2,216 765 29,791 
Total residential mortgage354,529 374,927 395,948 63,504 42,571 281,290 354,986 23,029 1,890,784 
Residential mortgage guaranteed by U.S. government agencies
Pass289 2,254 9,000 10,722 17,244 191,426 — — 230,935 
Nonaccrual— — 299 1,460 2,319 10,927 — — 15,005 
Total residential mortgage guaranteed by U.S. government agencies289 2,254 9,299 12,182 19,563 202,353 — — 245,940 
Personal:
Pass254,497 193,095 154,887 172,114 68,871 201,278 549,187 332 1,594,261 
Special Mention47 28 40 12 17 — 6,003 4 6,151 
Accruing Substandard
— 444 — 160 — — — — 604 
Nonaccrual38 7 12 22 14 18 23 — 134 
Total personal254,582 193,574 154,939 172,308 68,902 201,296 555,213 336 1,601,150 
Total loans to individuals609,400 570,755 560,186 247,994 131,036 684,939 910,199 23,365 3,737,874 
Total loans$4,453,665 $3,294,886 $2,107,063 $1,734,561 $1,157,972 $2,992,242 $6,790,248 $26,513 $22,557,150 
Nonaccruing Loans

A summary of nonaccruing loans at September 30, 2023 follows (in thousands): 
As of September 30, 2023
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Energy$19,559 $19,559 $— $— 
Healthcare41,836 41,836 — — 
Services2,820 337 2,483 1,646 
General business6,483 6,483 — — 
Total commercial70,698 68,215 2,483 1,646 
Commercial real estate7,418 7,418 — — 
Loans to individuals:    
Residential mortgage30,954 30,954 — — 
Residential mortgage guaranteed by U.S. government agencies
10,436 10,436 — — 
Personal79 79 — — 
Total loans to individuals41,469 41,469 — — 
Total$119,585 $117,102 $2,483 $1,646 


A summary of nonaccruing loans at December 31, 2022 follows (in thousands): 
As of December 31, 2022
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Energy$1,399 $1,399 $— $— 
Healthcare41,034 34,661 6,373 946 
Services16,228 7,835 8,393 3,074 
General business1,636 1,636 — — 
Total commercial60,297 45,531 14,766 4,020 
Commercial real estate16,570 393 16,177 1,550 
Loans to individuals:    
Residential mortgage29,791 29,791 — — 
Residential mortgage guaranteed by U.S. government agencies
15,005 15,005 — — 
Personal134 134 — — 
Total loans to individuals44,930 44,930 — — 
Total$121,797 $90,854 $30,943 $5,570 
Loan Modifications to Borrowers Experiencing Financial Difficulty

At September 30, 2023 the Company had $136 million of loan modifications to borrowers experiencing financial difficulty, including $81 million of general business loans, $42 million of healthcare loans and $12 million of residential mortgage loans guaranteed by U.S. government agencies. Modifications generally consist of interest rate reductions, an other than insignificant payment delay, term extension or a combination. Approximately $97 million of the modifications are term extensions of healthcare and general business loans, and $38 million are combination modifications to healthcare loans and loans to individuals. During the nine months ended September 30, 2023, $4.0 million of residential mortgage loans were modified and subsequently defaulted with nearly all of these defaulted loans being guaranteed by U.S. government agencies. A payment default is defined as being 30 or more days past due after modification.

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, 2023 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$3,490,602 $— $— $— $3,490,602 $— 
Healthcare4,051,359 10 — 31,765 4,083,134 — 
Services3,564,401 599 324 1,037 3,566,361 — 
General business3,573,237 37 112 6,356 3,579,742 13 
Total commercial14,679,599 646 436 39,158 14,719,839 13 
Commercial real estate5,233,549 — 488 7,263 5,241,300 — 
Loans to individuals:    
Residential mortgage2,077,418 9,713 818 3,043 2,090,992 51 
Residential mortgage guaranteed by U.S. government agencies
58,486 31,390 19,004 52,212 161,092 47,670 
Personal1,510,472 298 2 23 1,510,795 — 
Total loans to individuals3,646,376 41,401 19,824 55,278 3,762,879 47,721 
Total$23,559,524 $42,047 $20,748 $101,699 $23,724,018 $47,734 
A summary of loans currently performing and past due as of December 31, 2022 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$3,424,766 $24 $— $— $3,424,790 $— 
Healthcare3,812,164 5,914 26,480 459 3,845,017 — 
Services3,423,042 1,060 2,461 4,958 3,431,521 — 
General business3,509,094 257 1,424 396 3,511,171 396 
Total commercial14,169,066 7,255 30,365 5,813 14,212,499 396 
Commercial real estate4,606,029 531 — 217 4,606,777 — 
Loans to individuals:    
Residential mortgage1,872,155 10,632 1,828 6,169 1,890,784 114 
Residential mortgage guaranteed by U.S. government agencies
108,019 36,119 19,400 82,402 245,940 75,604 
Personal1,600,595 502 21 32 1,601,150 — 
Total loans to individuals3,580,769 47,253 21,249 88,603 3,737,874 75,718 
Total$22,355,864 $55,039 $51,614 $94,633 $22,557,150 $76,114