Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

The various categories of loans are summarized as follows:


(In thousands)	2021		2020
Consumer:
Credit cards	$	187,052	$	188,845
Other consumer	168,318		202,379
Total consumer	355,370		391,224
Real estate:
Construction and development	1,326,371		1,596,255
Single family residential	2,101,975		1,880,673
Other commercial	5,738,904		5,746,863
Total real estate	9,167,250		9,223,791
Commercial:
Commercial	1,992,043		2,574,386
Agricultural	168,717		175,905
Total commercial	2,160,760		2,750,291
Other	329,123		535,591
Total loans	$	12,012,503	$	12,900,897

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


(In thousands)	2021		2020
Consumer:
Credit cards	$	377	$	301
Other consumer	381		1,219
Total consumer	758		1,520
Real estate:
Construction and development	2,296		3,625
Single family residential	19,268		28,062
Other commercial	26,953		24,155
Total real estate	48,517		55,842
Commercial:
Commercial	18,774		65,244
Agricultural	152		273
Total commercial	18,926		65,517
Other	3		—
Total	$	68,204	$	122,879

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, 2021
Consumer:
Credit cards	$	847	$	413	$	1,260	$	185,792	$	187,052	$	247
Other consumer	1,149		130		1,279		167,039		168,318		—
Total consumer	1,996		543		2,539		352,831		355,370		247
Real estate:
Construction and development	114		504		618		1,325,753		1,326,371		—
Single family residential	11,313		9,398		20,711		2,081,264		2,101,975		102
Other commercial	2,474		12,268		14,742		5,724,162		5,738,904		—
Total real estate	13,901		22,170		36,071		9,131,179		9,167,250		102
Commercial:
Commercial	4,812		10,074		14,886		1,977,157		1,992,043		—
Agricultural	13		117		130		168,587		168,717		—
Total commercial	4,825		10,191		15,016		2,145,744		2,160,760		—
Other	—		3		3		329,120		329,123		—
Total	$	20,722	$	32,907	$	53,629	$	11,958,874	$	12,012,503	$	349

December 31, 2020
Consumer:
Credit cards	$	708	$	256	$	964	$	187,881	$	188,845	$	256
Other consumer	2,771		302		3,073		199,306		202,379		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

Schedule of 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
December 31, 2021
Real estate:
Single-family residential	28	$	3,087	14	$	1,196	42	$	4,283
Other commercial	1	766		2	48		3	814
Total real estate	29	3,853		16	1,244		45	5,097
Commercial:
Commercial	2	436		2	1,406		4	1,842
Total commercial	2	436		2	1,406		4	1,842
Total	31	$	4,289	18	$	2,650	49	$	6,939

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

The following table presents loans that were restructured as TDRs during the years ended December 31, 2021 and 2020 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, 2021
Real estate:
Single-family residential	3	274		197		—		197		—
Other commercial	1	784		766		—		766		—
Total real estate	4	$	1,058	$	963	$	—	$	963	$	—

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	$	—	$	—

Summary of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, as of December 31, 2021 segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		2016 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	185,792	$	—	$	185,792
30-89 days past due	—		—		—		—		—		—		847		—		847
90+ days past due	—		—		—		—		—		—		413		—		413
Total consumer - credit cards	—		—		—		—		—		—		187,052		—		187,052
Consumer - other
Delinquency:
Current	97,830		21,885		11,712		6,756		5,416		3,833		19,607		—		$	167,039
30-89 days past due	265		121		164		49		219		156		175		—		1,149
90+ days past due	23		23		28		21		13		22		—		—		130
Total consumer - other	98,118		22,029		11,904		6,826		5,648		4,011		19,782		—		168,318
Real estate - C&D
Risk rating:
Pass	74,813		83,729		28,803		17,349		8,505		9,319		1,074,617		20,285		$	1,317,420
Special mention	—		—		270		—		—		47		—		—		317
Substandard	191		77		16		54		324		423		5,598		1,951		8,634
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	75,004		83,806		29,089		17,403		8,829		9,789		1,080,215		22,236		1,326,371
Real estate - SF residential
Delinquency:
Current	419,605		335,788		185,190		260,037		193,110		421,957		256,155		9,422		$	2,081,264
30-89 days past due	1,061		883		1,662		791		1,077		4,360		1,479		—		11,313
90+ days past due	27		561		507		1,199		1,358		5,104		570		72		9,398
Total real estate - SF residential	420,693		337,232		187,359		262,027		195,545		431,421		258,204		9,494		2,101,975
Real estate - other commercial
Risk rating:
Pass	1,349,746		807,701		375,824		267,696		476,029		537,493		1,409,099		164,856		5,388,444
Special mention	28,151		30,981		2,799		6,650		39,361		4,801		38,638		1,608		152,989
Substandard	28,137		10,186		5,243		10,806		30,060		27,107		53,860		32,072		197,471
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	1,406,034		848,868		383,866		285,152		545,450		569,401		1,501,597		198,536		5,738,904
Commercial
Risk rating:
Pass	455,499		187,517		80,486		57,437		36,529		57,099		1,004,971		41,885		1,921,423
Special mention	670		2,482		1,066		189		261		2,770		8,500		10,499		26,437
Substandard	3,436		18,381		4,397		1,196		578		850		8,242		7,103		44,183
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	459,605		208,380		85,949		58,822		37,368		60,719		1,021,713		59,487		1,992,043
Commercial - agriculture
Risk rating:
Pass	32,780		20,230		10,253		3,646		2,364		459		98,245		327		168,304
Special mention	—		—		—		—		—		—		—		—		—
Substandard	191		25		27		53		22		3		23		69		413
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	32,971		20,255		10,280		3,699		2,386		462		98,268		396		168,717
Other
Delinquency:
Current	24,247		4,740		1,236		22,438		6,692		5,578		264,189		—		329,120
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	24,247		4,740		1,236		22,438		6,692		5,581		264,189		—		329,123
Total	$	2,516,672	$	1,525,310	$	709,683	$	656,367	$	801,918	$	1,081,384	$	4,431,020	$	290,149	$	12,012,503

The following table presents a summary of loans by credit quality indicator, 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:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	187,881	$	—	$	187,881
30-89 days past due	—		—		—		—		—		—		708		—		708
90+ days past due	—		—		—		—		—		—		256		—		256
Total consumer - credit cards	—		—		—		—		—		—		188,845		—		188,845
Consumer - other
Delinquency:
Current	69,334		44,215		27,525		21,995		19,023		2,530		14,684		—		$	199,306
30-89 days past due	234		441		327		658		689		84		338		—		2,771
90+ days past due	79		58		25		80		40		12		8		—		302
Total consumer - other	69,647		44,714		27,877		22,733		19,752		2,626		15,030		—		202,379
Real estate - C&D
Risk rating:
Pass	165,990		35,989		31,279		15,960		9,233		4,807		1,272,870		23,251		$	1,559,379
Special mention	2,728		344		259		2,107		19		—		9,613		—		15,070
Substandard	294		2,069		404		449		342		320		17,914		14		21,806
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	169,012		38,402		31,942		18,516		9,594		5,127		1,300,397		23,265		1,596,255
Real estate - SF residential
Delinquency:
Current	473,340		209,810		297,308		235,429		183,229		236,395		196,505		10,592		$	1,842,608
30-89 days past due	6,300		2,258		2,593		2,610		2,058		6,050		1,781		76		23,726
90+ days past due	557		1,853		2,735		2,582		832		3,852		1,928		—		14,339
Total real estate - SF residential	480,197		213,921		302,636		240,621		186,119		246,297		200,214		10,668		1,880,673
Real estate - other commercial
Risk rating:
Pass	1,563,245		525,750		375,303		518,534		372,679		284,098		1,445,428		181,949		5,266,986
Special mention	100,085		4,346		10,738		19,943		26,245		10,608		63,305		23,435		258,705
Substandard	66,737		9,418		24,380		14,067		3,744		11,158		52,182		39,486		221,172
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	1,730,067		539,514		410,421		552,544		402,668		305,864		1,560,915		244,870		5,746,863
Commercial
Risk rating:
Pass	1,168,085		154,740		110,383		65,757		35,198		45,568		803,751		56,648		2,440,130
Special mention	5,707		342		465		972		54		—		12,318		22,546		42,404
Substandard	23,227		4,495		1,586		730		276		334		53,682		7,522		91,852
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	1,197,019		159,577		112,434		67,459		35,528		45,902		869,751		86,716		2,574,386
Commercial - agriculture
Risk rating:
Pass	36,128		19,144		10,014		4,671		1,916		340		101,238		1,560		175,011
Special mention	—		79		13		299		—		6		34		—		431
Substandard	86		101		64		47		12		10		68		75		463
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	36,214		19,324		10,091		5,017		1,928		356		101,340		1,635		175,905
Other
Delinquency:
Current	125		4,260		27,256		6,489		2,628		6,065		488,676		—		535,499
30-89 days past due	59		—		—		—		33		—		—		—		92
90+ days past due	—		—		—		—		—		—		—		—		—
Total other	184		4,260		27,256		6,489		2,661		6,065		488,676		—		535,591
Total	$	3,682,340	$	1,019,712	$	922,657	$	913,379	$	658,250	$	612,237	$	4,725,168	$	367,154	$	12,900,897

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
December 31, 2021
Construction and development	$	2,489	$	—	$	—	$	2,489
Single family residential	1,838		—		—		1,838
Other commercial real estate	32,849		—		—		32,849
Commercial	—		—		9,913		9,913
Total	$	37,176	$	—	$	9,913	$	47,089

December 31, 2020
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, 2021, 2020 and 2019. 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, 2021
Beginning balance, January 1, 2021	$	42,093	$	182,868	$	7,472	$	5,617	$	238,050
Acquisition adjustment for PCD loans	3,349		10,101		—		1		13,451
Provision for credit loss expense	(22,031)		(7,918)		(908)		(352)		(31,209)
Charge-offs	(10,613)		(10,691)		(3,625)		(2,053)		(26,982)
Recoveries	4,660		4,910		1,048		1,404		12,022
Net charge-offs	(5,953)		(5,781)		(2,577)		(649)		(14,960)
Ending balance, December 31, 2021	$	17,458	$	179,270	$	3,987	$	4,617	$	205,332

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

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


(In thousands)	2021		2020		2019
Provision for credit losses related to:
Loans	$	(31,209)	$	82,488	$	43,240
Unfunded commitments	—		(10,000)		—
Securities - HTM	(1,183)		2,546		—
Securities - AFS	(312)		(61)		—
Total	$	(32,704)	$	74,973	$	43,240

Schedule of Financing Receivable, Purchased With Credit Deterioration

The following table provides a summary of loans purchased as part of the Landmark acquisition with credit deterioration at acquisition:


(In thousands)	Commercial	Real Estate	Credit Card	Other Consumer and Other	Total
Unpaid principal balance	11,046	55,549	—	67	66,662
PCD allowance for credit loss at acquisition	(350)	(2,008)	—	(1)	(2,359)
Non-credit related discount	(160)	(2,415)	—	(2)	(2,577)
Fair value of PCD loans	10,536	51,126	—	64	61,726

The following table provides a summary of loans purchased as part of the Triumph acquisition with credit deterioration at acquisition:


(In thousands)	Commercial	Real Estate	Credit Card	Other Consumer and Other	Total
Unpaid principal balance	40,466	80,803	—	15	121,284
PCD allowance for credit loss at acquisition	(2,999)	(8,093)	—	—	(11,092)
Non-credit related discount	(279)	(1,314)	—	(1)	(1,594)
Fair value of PCD loans	37,188	71,396	—	14	108,598