Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2023

The various categories of loans are summarized as follows:


(In thousands)	2023		2022
Consumer:
Credit cards	$	191,204	$	196,928
Other consumer	127,462		152,882
Total consumer	318,666		349,810
Real estate:
Construction and development	3,144,220		2,566,649
Single family residential	2,641,556		2,546,115
Other commercial	7,552,410		7,468,498
Total real estate	13,338,186		12,581,262
Commercial:
Commercial	2,490,176		2,632,290
Agricultural	232,710		205,623
Total commercial	2,722,886		2,837,913
Other	465,932		373,139
Total loans	$	16,845,670	$	16,142,124

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


(In thousands)	2023		2022
Consumer:
Credit cards	$	487	$	349
Other consumer	589		433
Total consumer	1,076		782
Real estate:
Construction and development	2,457		2,799
Single family residential	27,209		22,319
Other commercial	11,960		14,998
Total real estate	41,626		40,116
Commercial:
Commercial	39,886		17,356
Agricultural	734		177
Total commercial	40,620		17,533
Other	3		3
Total	$	83,325	$	58,434

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

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
December 31, 2023
Consumer:
Credit cards	$	1,734	$	892	$	2,626	$	188,578	$	191,204	$	791
Other consumer	1,471		216		1,687		125,775		127,462		—
Total consumer	3,205		1,108		4,313		314,353		318,666		791
Real estate:
Construction and development	3,171		2,190		5,361		3,138,859		3,144,220		—
Single family residential	30,697		12,522		43,219		2,598,337		2,641,556		7
Other commercial	4,702		3,612		8,314		7,544,096		7,552,410		—
Total real estate	38,570		18,324		56,894		13,281,292		13,338,186		7
Commercial:
Commercial	13,799		22,750		36,549		2,453,627		2,490,176		349
Agricultural	92		516		608		232,102		232,710		—
Total commercial	13,891		23,266		37,157		2,685,729		2,722,886		349
Other	—		3		3		465,929		465,932		—
Total	$	55,666	$	42,701	$	98,367	$	16,747,303	$	16,845,670	$	1,147

December 31, 2022
Consumer:
Credit cards	$	1,297	$	409	$	1,706	$	195,222	$	196,928	$	225
Other consumer	852		214		1,066		151,816		152,882		—
Total consumer	2,149		623		2,772		347,038		349,810		225
Real estate:
Construction and development	4,677		443		5,120		2,561,529		2,566,649		—
Single family residential	23,625		11,075		34,700		2,511,415		2,546,115		106
Other commercial	2,759		7,100		9,859		7,458,639		7,468,498		—
Total real estate	31,061		18,618		49,679		12,531,583		12,581,262		106
Commercial:
Commercial	5,034		7,575		12,609		2,619,681		2,632,290		176
Agricultural	111		67		178		205,445		205,623		—
Total commercial	5,145		7,642		12,787		2,825,126		2,837,913		176
Other	61		3		64		373,075		373,139		—
Total	$	38,416	$	26,886	$	65,302	$	16,076,822	$	16,142,124	$	507

Schedule of Troubled Debt Restructuring

The following table presents a summary of the amortized cost basis of loan modifications granted to borrowers experiencing financial difficulty, segregated by class of loans and type of loan modification, for the year ended December 31, 2023.


			Percent of				Percent of
			Total Class				Total Class
(Dollars in thousands)	Rate Reduction		of Loans		Term Extension		of Loans
Real estate:
Single family residential	$	79	—	%	$	—	—	%
Other commercial	—		—	%	30,493		0.40	%
Total real estate	79				30,493
Commercial:
Commercial	—		—	%	746		0.03	%
Total commercial	—				746
Total	$	79			$	31,239


	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
December 31, 2022
Real estate:
Single-family residential	24	$	1,849	12	$	1,589	36	$	3,438
Total real estate	24	1,849		12	1,589		36	3,438
Commercial:
Commercial	—	—		1	33		1	33
Total commercial	—	—		1	33		1	33
Total	24	$	1,849	13	$	1,622	37	$	3,471

The following table presents loans that were restructured as TDRs during the year ended December 31, 2022.


						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, 2022
Real estate:
Single-family residential	4	$	760	$	730	$	—	$	730	$	—
Total real estate	4	$	760	$	730	$	—	$	730	$	—

Summary of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, as of December 31, 2023, segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023		2022		2021		2020		2019		2018 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	188,578	$	—	$	188,578
30-89 days past due	—		—		—		—		—		—		1,734		—		1,734
90+ days past due	—		—		—		—		—		—		892		—		892
Total consumer - credit cards	—		—		—		—		—		—		191,204		—		191,204
Current-period consumer - credit cards gross charge-offs	—		—		—		—		—		—		5,303		—		5,303
Consumer - other
Delinquency:
Current	55,091		35,904		12,115		3,838		1,471		1,106		16,250		—		125,775
30-89 days past due	400		719		127		53		2		16		154		—		1,471
90+ days past due	35		127		46		—		—		—		8		—		216
Total consumer - other	55,526		36,750		12,288		3,891		1,473		1,122		16,412		—		127,462
Current-period consumer - other gross charge-offs	220		826		493		79		29		128		449		—		2,224
Real estate - C&D
Risk rating:
Pass	138,749		143,711		52,081		45,027		10,278		13,632		2,710,853		504		3,114,835
Special mention	—		1,143		7,284		—		—		396		16,682		—		25,505
Substandard	—		101		48		—		—		247		3,484		—		3,880
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	138,749		144,955		59,413		45,027		10,278		14,275		2,731,019		504		3,144,220
Current-period real estate - C&D gross charge-offs	—		1,148		—		—		—		8		349		—		1,505
Real estate - SF residential
Delinquency:
Current	371,326		620,933		352,589		238,128		121,416		504,675		388,705		565		2,598,337
30-89 days past due	5,222		5,061		3,667		2,283		1,741		9,759		2,964		—		30,697
90+ days past due	1,313		2,443		1,810		1,661		120		3,465		1,710		—		12,522
Total real estate - SF residential	377,861		628,437		358,066		242,072		123,277		517,899		393,379		565		2,641,556
Current-period real estate - SF residential gross charge-offs	—		111		12		73		—		677		232		—		1,105
Real estate - other commercial
Risk rating:
Pass	729,602		1,651,010		1,237,810		621,595		171,230		417,122		2,333,637		—		7,162,006
Special mention	37,302		8,458		10,149		7,844		1,364		11,604		84,978		—		161,699
Substandard	40,664		10,290		4,495		16,646		6,293		9,861		140,454		—		228,703
Doubtful and loss	—		—		—		2		—		—		—		—		2
Total real estate - other commercial	807,568		1,669,758		1,252,454		646,087		178,887		438,587		2,559,069		—		7,552,410
Current-period real estate - other commercial gross charge-offs	—		—		—		7		2		35		9,731		—		9,775


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023		2022		2021		2020		2019		2018 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Commercial
Risk rating:
Pass	440,872		354,016		200,941		67,320		27,374		42,953		1,271,826		—		2,405,302
Special mention	157		14,117		316		367		98		889		8,228		—		24,172
Substandard	1,998		11,874		6,272		2,934		1,722		3,392		32,510		—		60,702
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	443,027		380,007		207,529		70,621		29,194		47,234		1,312,564		—		2,490,176
Current-period commercial - gross charge-offs	463		2,081		778		197		244		815		1,351		—		5,929
Commercial - agriculture
Risk rating:
Pass	39,680		30,075		13,940		6,280		2,071		303		134,180		—		226,529
Special mention	363		733		1,068		—		—		—		3,257		—		5,421
Substandard	518		37		71		104		26		—		4		—		760
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	40,561		30,845		15,079		6,384		2,097		303		137,441		—		232,710
Current-period commercial - agriculture gross charge-offs	—		7		—		—		—		26		—		—		33
Other
Delinquency:
Current	45,234		144,732		28,413		2,543		3,255		36,719		205,033		—		465,929
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	45,234		144,732		28,413		2,543		3,255		36,722		205,033		—		465,932
Current-period other - gross charge-offs	—		—		—		—		—		—		298		—		298
Total	$	1,908,526	$	3,035,484	$	1,933,242	$	1,016,625	$	348,461	$	1,056,142	$	7,546,121	$	1,069	$	16,845,670

The following table presents a summary of loans by credit quality indicator, as of December 31, 2022 segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		2021		2020		2019		2018		2017 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	195,222	$	—	$	195,222
30-89 days past due	—		—		—		—		—		—		1,297		—		1,297
90+ days past due	—		—		—		—		—		—		409		—		409
Total consumer - credit cards	—		—		—		—		—		—		196,928		—		196,928
Consumer - other
Delinquency:
Current	86,303		26,339		10,071		3,804		2,671		2,275		20,350		3		$	151,816
30-89 days past due	298		241		135		13		34		119		12		—		852
90+ days past due	121		47		2		1		2		41		—		—		214
Total consumer - other	86,722		26,627		10,208		3,818		2,707		2,435		20,362		3		152,882
Real estate - C&D
Risk rating:
Pass	237,304		68,916		50,912		16,920		13,625		9,611		2,163,776		334		$	2,561,398
Special mention	—		—		—		—		—		41		1,342		—		1,383
Substandard	1,091		116		36		13		31		103		2,478		—		3,868
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	238,395		69,032		50,948		16,933		13,656		9,755		2,167,596		334		2,566,649
Real estate - SF residential
Delinquency:
Current	700,976		411,885		295,365		141,608		192,176		440,931		324,282		4,192		$	2,511,415
30-89 days past due	3,105		3,415		1,290		2,018		3,129		8,626		2,042		—		23,625
90+ days past due	586		871		885		968		1,017		6,312		436		—		11,075
Total real estate - SF residential	704,667		416,171		297,540		144,594		196,322		455,869		326,760		4,192		2,546,115
Real estate - other commercial
Risk rating:
Pass	1,917,352		1,482,049		768,630		254,986		179,729		428,027		2,093,379		19,469		7,143,621
Special mention	19,538		32,831		38,821		206		2,261		20,741		104,431		—		218,829
Substandard	24,639		3,399		27,399		2,544		2,026		15,217		30,824		—		106,048
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	1,961,529		1,518,279		834,850		257,736		184,016		463,985		2,228,634		19,469		7,468,498
Commercial
Risk rating:
Pass	595,256		300,650		168,539		41,924		31,329		35,447		1,401,402		24,940		2,599,487
Special mention	199		1,700		11		32		—		927		2,708		80		5,657
Substandard	5,257		2,435		3,328		802		891		1,290		11,337		1,805		27,145
Doubtful and loss	—		—		—		—		—		—		—		1		1
Total commercial	600,712		304,785		171,878		42,758		32,220		37,664		1,415,447		26,826		2,632,290
Commercial - agriculture
Risk rating:
Pass	44,377		22,901		12,044		4,483		1,029		369		119,342		310		204,855
Special mention	8		—		—		—		—		—		—		—		8
Substandard	55		8		78		49		10		—		560		—		760
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	44,440		22,909		12,122		4,532		1,039		369		119,902		310		205,623
Other
Delinquency:
Current	152,086		29,362		8,181		4,742		20,018		25,349		132,384		953		373,075
30-89 days past due	—		—		—		—		—		61		—		—		61
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	152,086		29,362		8,181		4,742		20,018		25,413		132,384		953		373,139
Total	$	3,788,551	$	2,387,165	$	1,385,727	$	475,113	$	449,978	$	995,490	$	6,608,013	$	52,087	$	16,142,124

Schedule of the Activity in the Allowance for Loan Losses

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


(In thousands)	Real Estate Collateral		Other Collateral		Total
December 31, 2023
Construction and development	$	43,826	$	—	$	43,826
Single family residential	3,870		—		3,870
Other commercial real estate	76,229		—		76,229
Commercial	—		20,679		20,679
Total	$	123,925	$	20,679	$	144,604

December 31, 2022
Construction and development	$	2,156	$	—	$	2,156
Single family residential	—		—		—
Other commercial real estate	65,450		—		65,450
Commercial	—		3,320		3,320
Total	$	67,606	$	3,320	$	70,926

The following table details activity in the allowance for credit losses by portfolio segment for the years ended December 31, 2023, 2022 and 2021. 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, 2023
Beginning balance, January 1, 2023	$	34,406	$	150,795	$	5,140	$	6,614	$	196,955
Provision for credit loss expense	5,934		36,381		5,023		86		47,424
Charge-offs	(5,962)		(12,385)		(5,303)		(2,522)		(26,172)
Recoveries	2,092		2,386		1,008		1,538		7,024
Net charge-offs	(3,870)		(9,999)		(4,295)		(984)		(19,148)
Ending balance, December 31, 2023	$	36,470	$	177,177	$	5,868	$	5,716	$	225,231

December 31, 2022
Beginning balance, January 1, 2022	$	17,458	$	179,270	$	3,987	$	4,617	$	205,332
Acquisition adjustment for PCD loans	6,433		3,187		—		2		9,622
Provision for credit loss expense	22,412		(34,456)		3,991		2,674		(5,379)
Charge-offs	(14,270)		(4,122)		(3,862)		(1,876)		(24,130)
Recoveries	2,373		6,916		1,024		1,197		11,510
Net charge-offs	(11,897)		2,794		(2,838)		(679)		(12,620)
Ending balance, December 31, 2022	$	34,406	$	150,795	$	5,140	$	6,614	$	196,955

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

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


(In thousands)	2023		2022		2021
Provision for credit losses related to:
Loans	$	47,424	$	(5,379)	$	(31,209)
Unfunded commitments	(16,300)		19,453		—
Securities - HTM	1,826		—		(1,183)
Securities - AFS	9,078		—		(312)
Total	$	42,028	$	14,074	$	(32,704)

Schedule of Financing Receivable, Purchased With Credit Deterioration

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


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Unpaid principal balance	$	8,258	$	66,534	$	—	$	59	$	74,851
PCD allowance for credit loss at acquisition	(6,433)		(3,187)		—		(2)		(9,622)
Non-credit related discount	(378)		(998)		—		(1)		(1,377)
Fair value of PCD loans	$	1,447	$	62,349	$	—	$	56	$	63,852

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