Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Loan Portfolio

The various categories of loans are summarized as follows:

(In thousands)	March 31, 2020		December 31, 2019
Consumer:
Credit cards	$	188,596	$	204,802
Other consumer	267,870		249,195
Total consumer	456,466		453,997
Real Estate:
Construction and development	2,024,118		2,248,673
Single family residential	2,343,543		2,414,753
Other commercial	6,466,104		6,358,514
Total real estate	10,833,765		11,021,940
Commercial:
Commercial	2,314,472		2,451,119
Agricultural	191,535		191,525
Total commercial	2,506,007		2,642,644
Other	578,039		307,123
Total loans	$	14,374,277	$	14,425,704

Nonaccrual Loans

The amortized cost basis of nonaccrual loans segregated by class of loans are as follows:

(In thousands)	March 31, 2020		December 31, 2019
Consumer:
Credit cards	$	265	$	382
Other consumer	2,111		1,705
Total consumer	2,376		2,087
Real estate:
Construction and development	6,604		5,289
Single family residential	30,829		27,695
Other commercial	36,428		16,582
Total real estate	73,861		49,566
Commercial:
Commercial	78,944		40,924
Agricultural	682		753
Total commercial	79,626		41,677
Total	$	155,863	$	93,330

Past Due Loans

An age analysis of the amortized cost basis of past due loans, including nonaccrual loans, segregated by class of loans is as follows:

(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing
March 31, 2020
Consumer:
Credit cards	$	866	$	325	$	1,191	$	187,405	$	188,596	$	115
Other consumer	4,540		1,131		5,671		262,199		267,870		—
Total consumer	5,406		1,456		6,862		449,604		456,466		115
Real estate:
Construction and development	2,713		5,013		7,726		2,016,392		2,024,118		—
Single family residential	31,236		15,246		46,482		2,297,061		2,343,543		321
Other commercial	23,524		10,673		34,197		6,431,907		6,466,104		1
Total real estate	57,473		30,932		88,405		10,745,360		10,833,765		322
Commercial:
Commercial	16,361		25,130		41,491		2,272,981		2,314,472		723
Agricultural	377		560		937		190,598		191,535		—
Total commercial	16,738		25,690		42,428		2,463,579		2,506,007		723
Other	—		—		—		578,039		578,039		—
Total	$	79,617	$	58,078	$	137,695	$	14,236,582	$	14,374,277	$	1,160
December 31, 2019
Consumer:
Credit cards	$	848	$	641	$	1,489	$	203,313	$	204,802	$	259
Other consumer	4,884		735		5,619		243,576		249,195		—
Total consumer	5,732		1,376		7,108		446,889		453,997		259
Real estate:
Construction and development	5,792		1,078		6,870		2,241,803		2,248,673		—
Single family residential	26,318		13,789		40,107		2,374,646		2,414,753		597
Other commercial	7,645		6,450		14,095		6,344,419		6,358,514		—
Total real estate	39,755		21,317		61,072		10,960,868		11,021,940		597
Commercial:
Commercial	10,579		13,551		24,130		2,426,989		2,451,119		—
Agricultural	1,223		456		1,679		189,846		191,525		—
Total commercial	11,802		14,007		25,809		2,616,835		2,642,644		—
Other	—		—		—		307,123		307,123		—
Total	$	57,289	$	36,700	$	93,989	$	14,331,715	$	14,425,704	$	856

Impaired Financing Receivables

The following table presents information pertaining to impaired loans as of December 31, 2019, in accordance with previous US GAAP prior to the adoption of ASU 2016-13.

(In thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Investment in Impaired Loans		Interest Income Recognized
December 31, 2019											Three Months Ended March 31, 2019
Consumer:
Credit cards	$	382	$	382	$	—	$	382	$	—	$	317	$	30
Other consumer	1,537		1,378		—		1,378		—		1,857		13
Total consumer	1,919		1,760		—		1,760		—		2,174		43
Real estate:
Construction and development	4,648		4,466		72		4,538		4		1,920		14
Single family residential	19,466		15,139		2,963		18,102		42		13,703		98
Other commercial	10,645		4,713		3,740		8,453		694		8,992		64
Total real estate	34,759		24,318		6,775		31,093		740		24,615		176
Commercial:
Commercial	53,436		6,582		28,998		35,580		5,007		20,739		148
Agricultural	525		383		116		499		—		1,147		8
Total commercial	53,961		6,965		29,114		36,079		5,007		21,886		156
Total	$	90,639	$	33,043	$	35,889	$	68,932	$	5,747	$	48,675	$	375

Troubled Debt Restructuring

The following table presents a summary of TDRs segregated by class of loans.

	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
March 31, 2020
Real estate:
Construction and development	—	$	—	1	$	71	1	$	71
Single-family residential	7	898		12	904		19	1,802
Other commercial	1	455		2	75		3	530
Total real estate	8	1,353		15	1,050		23	2,403
Commercial:
Commercial	4	2,757		3	73		7	2,830
Total commercial	4	2,757		3	73		7	2,830
Total	12	$	4,110	18	$	1,123	30	$	5,233
December 31, 2019
Real estate:
Construction and development	—	$	—	1	$	72	1	$	72
Single-family residential	7	1,151		12	671		19	1,822
Other commercial	1	476		2	80		3	556
Total real estate	8	1,627		15	823		23	2,450
Commercial:
Commercial	4	2,784		3	79		7	2,863
Total commercial	4	2,784		3	79		7	2,863
Total	12	$	4,411	18	$	902	30	$	5,313

Loans by Credit Risk Ratings

The following table presents a summary of loans by credit quality indicator as of March 31, 2020 segregated by class of loans.

	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2020 (YTD)		2019		2018		2017		2016		2015 and Prior		Lines of Credit Amortized Cost Basis		Lines of Credit Converted to Term Loans Amortized Cost Basis		Total
March 31, 2020
Consumer - credit cards
Delinquency:
30-89 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	866	$	—	$	866
90+ days past due	—		—		—		—		—		—		325		—		325
Total consumer - credit cards	—		—		—		—		—		—		1,191		—		1,191
Consumer - other
Delinquency:
30-89 days past due	47		1,109		636		1,188		1,182		251		128		—		4,541
90+ days past due	—		147		97		446		203		60		178		—		1,131
Total consumer - other	47		1,256		733		1,634		1,385		311		306		—		5,672
Real estate - C&D
Risk rating:
5 internal grade	—		45		19		1,957		21		—		—		—		2,042
6 internal grade	—		3,569		620		206		432		626		2,401		209		8,063
7 internal grade	—		—		—		—		—		—		—		—		—
Total real estate - C&D	—		3,614		639		2,163		453		626		2,401		209		10,105
Real estate - SF residential
Delinquency:
30-89 days past due	33		4,672		6,168		4,648		5,010		8,233		2,471		—		31,235
90+ days past due	—		2,115		4,074		2,394		1,829		3,748		1,086		—		15,246
Total real estate - SF residential	33		6,787		10,242		7,042		6,839		11,981		3,557		—		46,481
Real estate - other commercial
Risk rating:
5 internal grade	1,037		23,628		2,116		985		4,845		3,379		12,477		—		48,467
6 internal grade	2,728		16,060		17,211		4,369		6,860		20,059		37,552		1,037		105,876
7 internal grade	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	3,765		39,688		19,327		5,354		11,705		23,438		50,029		1,037		154,343
Commercial
Risk rating:
5 internal grade	—		209		14		270		407		77		25,418		—		26,395
6 internal grade	16		11,925		6,994		16,480		1,264		764		54,993		743		93,179
7 internal grade	—		—		—		—		—		—		—		—		—
Total commercial	16		12,134		7,008		16,750		1,671		841		80,411		743		119,574
Commercial - agriculture
Risk rating:
5 internal grade	—		67		—		25		12		—		17		—		121
6 internal grade	—		115		177		169		88		8		230		—		787
7 internal grade	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	—		182		177		194		100		8		247		—		908
Total	$	3,861	$	63,661	$	38,126	$	33,137	$	22,153	$	37,205	$	138,142	$	1,989	$	338,274

The following table presents a summary of loans by credit risk rating as of December 31, 2019 segregated by class of loans.

(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
December 31, 2019
Consumer:
Credit cards	$	204,161	$	—	$	641	$	—	$	—	$	204,802
Other consumer	247,668		—		2,026		—		—		249,694
Total consumer	451,829		—		2,667		—		—		454,496
Real estate:
Construction and development	2,229,019		70		7,735		—		37		2,236,861
Single family residential	2,394,284		6,049		41,601		130		—		2,442,064
Other commercial	6,068,425		69,745		67,429		—		—		6,205,599
Total real estate	10,691,728		75,864		116,765		130		37		10,884,524
Commercial:
Commercial	2,384,263		26,713		84,317		43		180		2,495,516
Agricultural	309,741		41		5,672		—		—		315,454
Total commercial	2,694,004		26,754		89,989		43		180		2,810,970
Other	275,714		—		—		—		—		275,714
Total	$	14,113,275	$	102,618	$	209,421	$	173	$	217	$	14,425,704

Allowance for Loan Losses

The collateral securing these loans consist of commercial real estate properties, residential properties, other business assets, and secured energy production assets.

(In thousands)	Real Estate Collateral		Energy		Other Collateral		Total
Construction and development	$	3,078	$	—	$	—	$	3,078
Single family residential	3,586		—		—		3,586
Other commercial real estate	16,984		—		—		16,984
Commercial	—		43,573		8,449		52,022
Total	$	23,648	$	43,573	$	8,449	$	75,670

The following table details activity in the allowance for credit losses by portfolio segment for loans for the three months ended March 31, 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. 

(In thousands)	Commercial			Real Estate			Credit Card			Other Consumer and Other			Total
Three Months Ended March 31, 2020
Allowance for credit losses:
Beginning balance, prior to adoption of CECL	$	22,863		$	39,161		$	4,051		$	2,169		$	68,244
Impact of CECL adoption	22,733			114,314			2,232			12,098			151,377
Provision for credit loss expense	30,907			(12,158		)	2,750			4,698			26,197
Charge-offs	(523		)	(396		)	(1,441		)	(1,379		)	(3,739		)
Recoveries	347			101			225			443			1,116
Net charge-offs	(176		)	(295		)	(1,216		)	(936		)	(2,623		)
Balance, March 31, 2020	$	76,327		$	141,022		$	7,817		$	18,029		$	243,195

Activity in the allowance for credit losses for the three months ended March 31, 2019 was as follows:

(In thousands)	Commercial			Real Estate			Credit Card			Other Consumer and Other			Total
Three Months Ended March 31, 2019
Balance, beginning of period	$	20,514		$	29,838		$	3,923		$	2,419		$	56,694
Provision for credit losses	1,874			5,307			898			1,206			9,285
Charge-offs	(3,152		)	(417		)	(1,142		)	(1,553		)	(6,264		)
Recoveries	158			142			240			300			840
Net charge-offs	(2,994		)	(275		)	(902		)	(1,253		)	(5,424		)
Balance, March 31, 2019	$	19,394		$	34,870		$	3,919		$	2,372		$	60,555