Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

The various categories of loans are summarized as follows:


	June 30,		December 31,
(In thousands)	2024		2023
Consumer:
Credit cards	$	178,354	$	191,204
Other consumer	130,278		127,462
Total consumer	308,632		318,666
Real Estate:
Construction and development	3,056,703		3,144,220
Single family residential	2,666,201		2,641,556
Other commercial	7,760,266		7,552,410
Total real estate	13,483,170		13,338,186
Commercial:
Commercial	2,484,474		2,490,176
Agricultural	285,181		232,710
Total commercial	2,769,655		2,722,886
Other	630,980		465,932
Total loans	$	17,192,437	$	16,845,670

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


	June 30,		December 31,
(In thousands)	2024		2023
Consumer:
Credit cards	$	570	$	487
Other consumer	344		589
Total consumer	914		1,076
Real estate:
Construction and development	2,125		2,457
Single family residential	31,186		27,209
Other commercial	23,238		11,960
Total real estate	56,549		41,626
Commercial:
Commercial	44,878		39,886
Agricultural	547		734
Total commercial	45,425		40,620
Other	3		3
Total	$	102,891	$	83,325

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
June 30, 2024
Consumer:
Credit cards	$	1,941	$	670	$	2,611	$	175,743	$	178,354	$	544
Other consumer	987		108		1,095		129,183		130,278		—
Total consumer	2,928		778		3,706		304,926		308,632		544
Real estate:
Construction and development	788		1,465		2,253		3,054,450		3,056,703		—
Single family residential	19,991		13,744		33,735		2,632,466		2,666,201		14
Other commercial	7,852		19,016		26,868		7,733,398		7,760,266		—
Total real estate	28,631		34,225		62,856		13,420,314		13,483,170		14
Commercial:
Commercial	6,637		26,858		33,495		2,450,979		2,484,474		—
Agricultural	1,316		44		1,360		283,821		285,181		—
Total commercial	7,953		26,902		34,855		2,734,800		2,769,655		—
Other	—		3		3		630,977		630,980		—
Total	$	39,512	$	61,908	$	101,420	$	17,091,017	$	17,192,437	$	558

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

Schedule of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, as of June 30, 2024, segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2024 (YTD)		2023		2022		2021		2020		2019 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	175,743	$	—	$	175,743
30-89 days past due	—		—		—		—		—		—		1,941		—		1,941
90+ days past due	—		—		—		—		—		—		670		—		670
Total consumer - credit cards	—		—		—		—		—		—		178,354		—		178,354
Current-period consumer - credit cards gross charge-offs	—		—		—		—		—		—		3,064		—		3,064
Consumer - other
Delinquency:
Current	48,568		25,922		25,929		7,678		2,136		1,428		17,522		—		129,183
30-89 days past due	98		148		469		113		3		50		106		—		987
90+ days past due	9		8		63		22		—		4		2		—		108
Total consumer - other	48,675		26,078		26,461		7,813		2,139		1,482		17,630		—		130,278
Current-period consumer - other gross charge-offs	7		482		326		44		9		1		125		—		994
Real estate - C&D
Risk rating:
Pass	32,236		126,562		92,288		38,860		33,941		26,160		2,696,428		—		3,046,475
Special mention	—		—		64		—		—		386		2,681		—		3,131
Substandard	—		71		67		3,951		—		106		2,902		—		7,097
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	32,236		126,633		92,419		42,811		33,941		26,652		2,702,011		—		3,056,703
Current-period real estate - C&D gross charge-offs	—		—		—		—		—		—		52		—		52
Real estate - SF residential
Delinquency:
Current	117,485		349,776		590,514		336,109		201,501		616,937		420,144		—		2,632,466
30-89 days past due	372		427		5,056		1,087		1,190		8,093		3,766		—		19,991
90+ days past due	285		602		2,404		894		1,123		4,986		3,450		—		13,744
Total real estate - SF residential	118,142		350,805		597,974		338,090		203,814		630,016		427,360		—		2,666,201
Current-period real estate - SF residential gross charge-offs	—		—		109		—		1		4		56		—		170
Real estate - other commercial
Risk rating:
Pass	290,535		522,924		1,573,506		1,135,286		476,787		754,095		2,590,434		—		7,343,567
Special mention	887		16,462		11,581		19,412		1,596		11,964		106,721		—		168,623
Substandard	4,533		18,716		22,700		10,870		11,902		40,167		139,188		—		248,076
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	295,955		558,102		1,607,787		1,165,568		490,285		806,226		2,836,343		—		7,760,266
Current-period real estate - other commercial gross charge-offs	—		2,590		—		—		—		—		168		—		2,758


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2024 (YTD)		2023		2022		2021		2020		2019 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Commercial
Risk rating:
Pass	106,181		343,149		297,549		173,125		40,903		75,337		1,361,565		—		2,397,809
Special mention	131		87		3,254		749		210		1,032		14,622		—		20,085
Substandard	264		1,556		17,095		5,636		3,771		8,392		29,866		—		66,580
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	106,576		344,792		317,898		179,510		44,884		84,761		1,406,053		—		2,484,474
Current-period commercial - gross charge-offs	—		203		2,073		1,168		353		1,136		6,889		—		11,822
Commercial - agriculture
Risk rating:
Pass	20,548		27,201		24,916		10,628		3,688		2,045		193,052		—		282,078
Special mention	—		241		194		821		—		—		534		—		1,790
Substandard	—		—		573		54		279		14		393		—		1,313
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	20,548		27,442		25,683		11,503		3,967		2,059		193,979		—		285,181
Current-period commercial - agriculture gross charge-offs	—		—		—		8		6		—		—		—		14
Other
Delinquency:
Current	15,505		45,646		141,305		28,134		1,987		37,414		360,986		—		630,977
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	15,505		45,646		141,305		28,134		1,987		37,417		360,986		—		630,980
Current-period other - gross charge-offs	—		—		—		—		—		—		288		—		288
Total	$	637,637	$	1,479,498	$	2,809,527	$	1,773,429	$	781,017	$	1,588,613	$	8,122,716	$	—	$	17,192,437

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

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
June 30, 2024
Construction and development	$	2,056	$	—	$	2,056
Single family residential	—		—		—
Other commercial real estate	77,295		—		77,295
Commercial	—		31,262		31,262
Total	$	79,351	$	31,262	$	110,613

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

The following table details activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2024. 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
Allowance for credit losses:
Three Months Ended June 30, 2024
Beginning balance, April 1, 2024	$	35,191	$	180,414	$	5,768	$	5,994	$	227,367
Provision for credit loss expense	15,147		(5,187)		1,194		(55)		11,099
Charge-offs	(7,243)		(123)		(1,418)		(550)		(9,334)
Recoveries	455		72		221		509		1,257
Net (charge-offs) recoveries	(6,788)		(51)		(1,197)		(41)		(8,077)
Ending balance, June 30, 2024	$	43,550	$	175,176	$	5,765	$	5,898	$	230,389

Six Months Ended June 30, 2024
Beginning balance, January 1, 2024	$	36,470	$	177,177	$	5,868	$	5,716	$	225,231
Provision for credit loss expense	18,019		172		2,492		622		21,305
Charge-offs	(11,836)		(2,980)		(3,064)		(1,282)		(19,162)
Recoveries	897		807		469		842		3,015
Net (charge-offs) recoveries	(10,939)		(2,173)		(2,595)		(440)		(16,147)
Ending balance, June 30, 2024	$	43,550	$	175,176	$	5,765	$	5,898	$	230,389

Activity in the allowance for credit losses for the three and six months ended June 30, 2023 was as follows:


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Allowance for credit losses:
Three Months Ended June 30, 2023
Beginning balance, April 1, 2023	$	30,256	$	163,906	$	6,446	$	5,949	$	206,557
Provision for credit loss expense	1,483		1,464		995		1,119		5,061
Charge-offs	(1,225)		(435)		(1,409)		(666)		(3,735)
Recoveries	471		878		298		436		2,083
Net (charge-offs) recoveries	(754)		443		(1,111)		(230)		(1,652)
Ending balance, June 30, 2023	$	30,985	$	165,813	$	6,330	$	6,838	$	209,966

Six Months Ended June 30, 2023
Beginning balance, January 1, 2023	$	34,406	$	150,795	$	5,140	$	6,614	$	196,955
Provision for credit loss expense	(3,322)		15,485		3,144		670		15,977
Charge-offs	(1,637)		(1,639)		(2,486)		(1,122)		(6,884)
Recoveries	1,538		1,172		532		676		3,918
Net (charge-offs) recoveries	(99)		(467)		(1,954)		(446)		(2,966)
Ending balance, June 30, 2023	$	30,985	$	165,813	$	6,330	$	6,838	$	209,966

The components of the provision for credit losses for the three and six month periods ended June 30, 2024 and 2023 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2024		2023		2024		2023
Provision for credit losses related to:
Loans	$	11,099	$	5,061	$	21,305	$	15,977
Unfunded commitments	—		(5,000)		—		(5,000)
Securities - HTM	—		1,326		—		1,826
Securities - AFS	—		(1,326)		—		11,474
Total	$	11,099	$	61	$	21,305	$	24,277

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