Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

The various categories of loans are summarized as follows:


(In thousands)	2020		2019
Consumer:
Credit cards	$	180,354	$	204,802
Other consumer	210,870		249,694
Total consumer	391,224		454,496
Real estate:
Construction and development	1,596,255		2,236,861
Single family residential	1,880,673		2,442,064
Other commercial	5,746,863		6,205,599
Total real estate	9,223,791		10,884,524
Commercial:
Commercial	2,574,386		2,495,516
Agricultural	175,905		315,454
Total commercial	2,750,291		2,810,970
Other	535,591		275,714
Total loans	$	12,900,897	$	14,425,704

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


(In thousands)	2020		2019
Consumer:
Credit cards	$	301	$	382
Other consumer	1,219		1,705
Total consumer	1,520		2,087
Real estate:
Construction and development	3,625		5,289
Single family residential	28,062		27,695
Other commercial	24,155		16,582
Total real estate	55,842		49,566
Commercial:
Commercial	65,244		40,924
Agricultural	273		753
Total commercial	65,517		41,677
Total	$	122,879	$	93,330

Schedule of Aging Analysis of Past Due Loans, Excluding Loans Acquired


(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
December 31, 2020
Consumer:
Credit cards	$	708	$	256	$	964	$	179,390	$	180,354	$	256
Other consumer	2,771		302		3,073		207,797		210,870		13
Total consumer	3,479		558		4,037		387,187		391,224		269
Real estate:
Construction and development	1,375		3,089		4,464		1,591,791		1,596,255		—
Single family residential	23,726		14,339		38,065		1,842,608		1,880,673		253
Other commercial	2,660		9,586		12,246		5,734,617		5,746,863		—
Total real estate	27,761		27,014		54,775		9,169,016		9,223,791		253
Commercial:
Commercial	7,514		7,429		14,943		2,559,443		2,574,386		56
Agricultural	226		187		413		175,492		175,905		—
Total commercial	7,740		7,616		15,356		2,734,935		2,750,291		56
Other	92		—		92		535,499		535,591		—
Total	$	39,072	$	35,188	$	74,260	$	12,826,637	$	12,900,897	$	578


(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
December 31, 2019
Consumer:
Credit cards	$	848	$	641	$	1,489	$	203,313	$	204,802	$	259
Other consumer	4,884		735		5,619		244,075		249,694		—
Total consumer	5,732		1,376		7,108		447,388		454,496		259
Real estate:
Construction and development	5,792		1,078		6,870		2,229,991		2,236,861		—
Single family residential	26,318		13,789		40,107		2,401,957		2,442,064		597
Other commercial	7,645		6,450		14,095		6,191,504		6,205,599		—
Total real estate	39,755		21,317		61,072		10,823,452		10,884,524		597
Commercial:
Commercial	10,579		13,551		24,130		2,471,386		2,495,516		—
Agricultural	1,223		456		1,679		313,775		315,454		—
Total commercial	11,802		14,007		25,809		2,785,161		2,810,970		—
Other	—		—		—		275,714		275,714		—
Total	$	57,289	$	36,700	$	93,989	$	14,331,715	$	14,425,704	$	856

Schedule of Impaired Loans


(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
Consumer:
Credit cards	$	382	$	382	$	—	$	382	$	—	$	373	$	50
Other consumer	1,537		1,378		—		1,378		—		1,659		41
Total consumer	1,919		1,760		—		1,760		—		2,032		91
Real estate:
Construction and development	4,648		4,466		72		4,538		4		2,464		61
Single family residential	19,466		15,139		2,963		18,102		42		15,470		382
Other commercial	10,645		4,713		3,740		8,453		694		9,983		247
Total real estate	34,759		24,318		6,775		31,093		740		27,917		690
Commercial:
Commercial	53,436		6,582		28,998		35,580		5,007		28,219		697
Agricultural	525		383		116		499		—		908		22
Total commercial	53,961		6,965		29,114		36,079		5,007		29,127		719
Total	$	90,639	$	33,043	$	35,889	$	68,932	$	5,747	$	59,076	$	1,500

Schedule of Troubled Debt Restructuring

As of December 31, 2020, the Company has modified 3,729 loans totaling approximately $2.99 billion to loan customers affected by COVID-19. The following table summarizes these modified loans due to COVID-19 by industry.


(Dollars in thousands)	Number	Balance
Real Estate Rental and Leasing	1,038	$	1,160,537
Accommodation and Food Services	374	859,006
Health Care and Social Assistance	206	285,690
Construction	164	118,964
Retail Trade	143	131,311
Other Services (Except Public Administration)	128	56,283
Other	1,676	379,054
Total	3,729	$	2,990,845

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
December 31, 2020
Real estate:
Single-family residential	28	$	2,463	18	$	2,736	46	$	5,199
Other commercial	1	49		1	12		2	61
Total real estate	29	2,512		19	2,748		48	5,260
Commercial:
Commercial	3	626		3	1,627		6	2,253
Total commercial	3	626		3	1,627		6	2,253
Total	32	$	3,138	22	$	4,375	54	$	7,513


	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
December 31, 2019
Real estate:
Construction and development	—	$	—	1	$	72	1	$	72
Single-family residential	25	2,627		20	1,330		45	3,957
Other commercial	1	476		2	80		3	556
Total real estate	26	3,103		23	1,482		49	4,585
Commercial:
Commercial	4	2,784		3	79		7	2,863
Total commercial	4	2,784		3	79		7	2,863
Total	30	$	5,887	26	$	1,561	56	$	7,448

The following table presents loans that were restructured as TDRs during the years ended December 31, 2020 and 2019 segregated by class of loans.


						Modification Type
(Dollars in thousands)	Number of Loans	Balance Prior to TDR		Balance at December 31,		Change in Maturity Date		Change in Rate		Financial Impact on Date of Restructure
Year Ended December 31, 2020
Real estate:
Single-family residential	5	$	1,948	$	1,896	$	1,896	$	—	$	—
Total real estate	5	$	1,948	$	1,896	$	1,896	$	—	$	—

Year Ended December 31, 2019
Real estate:
Single-family residential	4	$	997	$	996	$	996	$	—	$	—
Total real estate	4	$	997	$	996	$	996	$	—	$	—

Summary of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, other than pass or current, as of December 31, 2020 segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2020		2019		2018		2017		2016		2015 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
30-89 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	708	$	—	$	708
90+ days past due	—		—		—		—		—		—		256		—		256
Total consumer - credit cards	—		—		—		—		—		—		964		—		964
Consumer - other
Delinquency:
30-89 days past due	234		441		327		658		689		84		339		—		2,772
90+ days past due	79		58		25		80		40		12		8		—		302
Total consumer - other	313		499		352		738		729		96		347		—		3,074
Real estate - C&D
Risk rating:
5 internal grade	2,728		344		259		2,107		19		—		9,613		—		15,070
6 internal grade	294		2,069		404		449		342		320		17,914		14		21,806
7 internal grade	—		—		—		—		—		—		—		—		—
Total real estate - C&D	3,022		2,413		663		2,556		361		320		27,527		14		36,876
Real estate - SF residential
Delinquency:
30-89 days past due	6,300		2,258		2,593		2,610		2,058		6,050		1,782		76		23,727
90+ days past due	557		1,853		2,735		2,582		832		3,852		1,928		—		14,339
Total real estate - SF residential	6,857		4,111		5,328		5,192		2,890		9,902		3,710		76		38,066
Real estate - other commercial
Risk rating:
5 internal grade	100,085		4,346		10,738		19,943		26,245		10,608		63,305		23,435		258,705
6 internal grade	66,737		9,418		24,380		14,067		3,744		11,158		52,182		39,486		221,172
7 internal grade	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	166,822		13,764		35,118		34,010		29,989		21,766		115,487		62,921		479,877
Commercial
Risk rating:
5 internal grade	5,707		342		465		972		54		—		12,318		22,546		42,404
6 internal grade	23,227		4,495		1,586		730		276		334		53,682		7,522		91,852
7 internal grade	—		—		—		—		—		—		—		—		—
Total commercial	28,934		4,837		2,051		1,702		330		334		66,000		30,068		134,256
Commercial - agriculture
Risk rating:
5 internal grade	—		79		13		299		—		6		34		—		431
6 internal grade	86		101		64		47		12		10		68		75		463
7 internal grade	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	86		180		77		346		12		16		102		75		894
Total	$	206,034	$	25,804	$	43,589	$	44,544	$	34,311	$	32,434	$	214,137	$	93,154	$	694,007

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

Schedule of the Activity in the 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	$	1,539	$	—	$	—	$	1,539
Single family residential	6,950		—		—		6,950
Other commercial real estate	—		40,703		5,741		46,444
Commercial	15,065		—		—		15,065
Total	$	23,554	$	40,703	$	5,741	$	69,998

The following table details activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2020, 2019 and 2018. 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
December 31, 2020
Beginning balance, January 1, 2020 - 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	42,017		42,276		4,288		(6,093)		82,488
Charge-offs	(48,736)		(13,788)		(4,113)		(4,022)		(70,659)
Recoveries	3,216		905		1,014		1,465		6,600
Net charge-offs	(45,520)		(12,883)		(3,099)		(2,557)		(64,059)
Ending balance, December 31, 2020	$	42,093	$	182,868	$	7,472	$	5,617	$	238,050

December 31, 2019
Beginning balance, January 1, 2019	$	20,514	$	29,838	$	3,923	$	2,419	$	56,694
Provision for credit loss expense	24,434		12,714		3,692		2,400		43,240
Charge-offs	(23,352)		(3,892)		(4,585)		(5,007)		(36,836)
Recoveries	1,267		501		1,021		2,357		5,146
Net charge-offs	(22,085)		(3,391)		(3,564)		(2,650)		(31,690)
Ending balance, December 31, 2019	$	22,863	$	39,161	$	4,051	$	2,169	$	68,244

December 31, 2018
Beginning balance, January 1, 2018	$	7,007	$	27,699	$	3,784	$	3,596	$	42,086
Provision for credit loss expense	21,176		8,846		3,185		4,941		38,148
Charge-offs	(8,414)		(7,698)		(4,051)		(6,675)		(26,838)
Recoveries	745		991		1,005		557		3,298
Net charge-offs	(7,669)		(6,707)		(3,046)		(6,118)		(23,540)
Ending balance, December 31, 2018	$	20,514	$	29,838	$	3,923	$	2,419	$	56,694

The components of provision for credit losses for the years ended December 31were as follows:


(In thousands)	2020		2019		2018
Provision for credit losses related to:
Loans	$	82,488	$	43,240	$	38,148
Unfunded commitments	(10,000)		—		—
Securities - HTM	2,546		—		—
Securities - AFS	(61)		—		—
Total	$	74,973	$	43,240	$	38,148