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Loans and Allowance for Loan Leases (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Categories of loans at March 31, 2020 and December 31, 2019 include:
March 31, 2020December 31, 2019
(Dollars in thousands)
Commercial$1,355,723  $1,356,817  
Energy398,797  408,573  
Commercial real estate1,084,684  1,024,041  
Construction and land development625,145  628,418  
Residential real estate503,702  398,695  
Consumer43,118  45,163  
Gross loans4,011,169  3,861,707  
Less: Allowance for loan losses51,458  56,896  
Less: Net deferred loan fees and costs8,718  9,463  
Net loans$3,950,993  $3,795,348  
Financing Receivable, Allowance for Credit Loss
The following tables summarize the activity in the allowance for loan losses by portfolio segment and disaggregated based on the Company’s impairment methodology. The allocation in one portfolio segment does not preclude its availability to absorb losses in other segments:
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstateConsumerTotal
(Dollars in thousands)
Three months ended March 31, 2020
Allowance for loan losses
Beginning balance
$35,864  $6,565  $8,085  $3,516  $2,546  320  $56,896  
Provision charged to expense
3,271  2,313  4,538  1,505  2,141  182  13,950  
Charge-offs(18,077) (1,279) —  —  —  (104) (19,460) 
Recoveries71  —  —  —  —  1  72  
Ending balance$21,129  $7,599  $12,623  $5,021  $4,687  $399  $51,458  

CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstateConsumerTotal
(Dollars in thousands)
Three months ended March 31, 2019
Allowance for loan losses
Beginning balance$16,584  $10,262  $6,755  $2,475  $1,464  $286  $37,826  
Provision charged to expense5,163  (3,748) 716  110  583  26  2,850  
Charge-offs(1,254) —  —  —  —  (10) (1,264) 
Recoveries13  576  —  —  —  —  589  
Ending balance$20,506  $7,090  $7,471  $2,585  $2,047  $302  $40,001  

CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstateConsumerTotal
(Dollars in thousands)
March 31, 2020
Ending balance
Individually evaluated for impairment
$3,228  $1,224  $1,449  $—  $189  $—  $6,090  
Collectively evaluated for impairment
$17,901  $6,375  $11,174  $5,021  $4,498  $399  $45,368  
Allocated to loans:
Individually evaluated for impairment
$71,983  $15,703  $14,840  $—  $5,654  $254  $108,434  
Collectively evaluated for impairment
$1,283,740  $383,094  $1,069,844  $625,145  $498,048  $42,864  $3,902,735  
Ending balance$1,355,723  $398,797  $1,084,684  $625,145  $503,702  $43,118  $4,011,169  
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstateConsumerTotal
(Dollars in thousands)
December 31, 2019
Ending balance
Individually evaluated for impairment
$19,942  $1,949  $210  $—  $197  $—  $22,298  
Collectively evaluated for impairment
$15,922  $4,616  $7,875  $3,516  $2,349  $320  $34,598  
Allocated to loans:
Individually evaluated for impairment
$70,876  9,744  $10,492  $—  $2,388  $—  $93,500  
Collectively evaluated for impairment
$1,285,941  $398,829  $1,013,549  $628,418  $396,307  $45,163  $3,768,207  
Ending balance$1,356,817  $408,573  $1,024,041  $628,418  $398,695  $45,163  $3,861,707  
Financing Receivable Credit Quality Indicators
The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating category (grades 1 - 8), portfolio segment and payment activity:
Pass & WatchSpecial MentionSubstandardDoubtfulLossTotal
(Dollars in thousands)
March 31, 2020
Commercial$1,234,385  $49,459  $71,879  $—  $—  $1,355,723  
Energy370,614  12,628  12,294  3,261  —  398,797  
Commercial real estate1,058,543  14,985  10,329  827  —  1,084,684  
Construction and land development
625,145  —  —  —  —  625,145  
Residential real estate496,236  1,791  5,675  —  —  503,702  
Consumer42,864  —  254  —  —  43,118  
$3,827,787  $78,863  $100,431  $4,088  $—  $4,011,169  

Pass & WatchSpecial MentionSubstandardDoubtfulLossTotal
(Dollars in thousands)
December 31, 2019
Commercial$1,258,952  $27,069  $70,796  $—  $—  $1,356,817  
Energy392,233  9,460  2,340  4,540  —  408,573  
Commercial real estate1,007,921  9,311  5,866  943  —  1,024,041  
Construction and land development
628,418  —  —  —  —  628,418  
Residential real estate394,495  1,789  2,411  —  —  398,695  
Consumer45,163  —  —  —  —  45,163  
$3,727,182  $47,629  $81,413  $5,483  $—  $3,861,707  
Financing Receivable, Past Due
The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of March 31, 2020 and December 31, 2019:
30-59 Days Past Due60-89 Days Past Due90 Days or MoreTotal Past DueCurrentTotal Loans ReceivableLoans >= 90 Days and Accruing
(Dollars in thousands)
March 31, 2020
Commercial$5,135  $469  $10,062  $15,666  $1,340,057  $1,355,723  $—  
Energy—  5,612  3,314  8,926  389,871  398,797  —  
Commercial real estate4,092  —  4,586  8,678  1,076,006  1,084,684  —  
Construction and land development
—  —  —  —  625,145  625,145  —  
Residential real estate3,707  269  1,920  5,896  497,806  503,702  —  
Consumer—  254  —  254  42,864  43,118  —  
$12,934  $6,604  $19,882  $39,420  $3,971,749  $4,011,169  $—  

30-59 Days Past Due60-89 Days Past Due90 Days or MoreTotal Past DueCurrentTotal Loans ReceivableLoans >= 90 Days and Accruing
(Dollars in thousands)
December 31, 2019
Commercial$1,091  $276  $30,911  $32,278  $1,324,539  $1,356,817  $37  
Energy2,340  —  4,593  6,933  401,640  408,573  53  
Commercial real estate316  —  4,589  4,905  1,019,136  1,024,041  4,501  
Construction and land development
196  —  —  196  628,222  628,418  —  
Residential real estate2,347  —  1,919  4,266  394,429  398,695  —  
Consumer2  254  —  256  44,907  45,163  —  
$6,292  $530  $42,012  $48,834  $3,812,873  $3,861,707  $4,591  
Impaired Financing Receivables
The following tables present impaired loans for the periods ended March 31, 2020 and December 31, 2019:
Unpaid
Recorded BalancePrincipal BalanceSpecific Allowance
(Dollars in thousands)
March 31, 2020
Loans without a specific valuation
Commercial$60,048  $60,077  $—  
Energy3,462  7,741  —  
Commercial real estate8,492  8,622  —  
Construction and land development—  —  —  
Residential real estate5,409  5,430  —  
Consumer254  254  —  
Loans with a specific valuation
Commercial11,935  23,341  3,228  
Energy12,241  12,241  1,224  
Commercial real estate6,348  6,474  1,449  
Construction and land development—  —  —  
Residential real estate245  244  189  
Consumer—  —  —  
Total
Commercial71,983  83,418  3,228  
Energy15,703  19,982  1,224  
Commercial real estate14,840  15,096  1,449  
Construction and land development—  —  —  
Residential real estate5,654  5,674  189  
Consumer254  254  —  
$108,434  $124,424  $6,090  
Unpaid
Recorded BalancePrincipal BalanceSpecific Allowance
(Dollars in thousands)
December 31, 2019
Loans without a specific valuation
Commercial$35,846  $35,846  $—  
Energy2,864  2,864  —  
Commercial real estate9,464  9,464  —  
Construction and land development—  —  —  
Residential real estate2,139  2,139  —  
Consumer—  —  —  
Loans with a specific valuation
Commercial35,030  40,030  19,942  
Energy6,880  9,880  1,949  
Commercial real estate1,028  1,028  210  
Construction and land development—  —  —  
Residential real estate249  249  197  
Consumer—  —  —  
Total
Commercial70,876  75,876  19,942  
Energy9,744  12,744  1,949  
Commercial real estate10,492  10,492  210  
Construction and land development—  —  —  
Residential real estate2,388  2,388  197  
Consumer—  —  —  
$93,500  $101,500  $22,298  
The table below shows interest income recognized during the three month periods ended March 31, 2020 and March 31, 2019 for impaired loans held at the end of each period:
Three months ended
March 31,
20202019
(Dollars in thousands)
Commercial$910  $1,285  
Energy122  152  
Commercial real estate123  254  
Construction and land development—  —  
Residential real estate40  11  
Consumer—  —  
Total interest income recognized$1,195  $1,702  
The table below shows the three month average balance of impaired loans as of March 31, 2020 and 2019 by loan category for impaired loans held at the end of each period:
Three months ended
March 31,
20202019
(Dollars in thousands)
Commercial$86,626  $77,698  
Energy16,976  15,986  
Commercial real estate14,927  14,073  
Construction and land development—  —  
Residential real estate5,230  2,157  
Consumer254  —  
Total average impaired loans$124,013  $109,914  
Financing Receivable, Nonaccrual The following table presents the Company’s non-accrual loans by loan category at March 31, 2020 and December 31, 2019:
March 31, 2020December 31, 2019
(Dollars in thousands)
Commercial$10,352  $32,130  
Energy8,265  4,540  
Commercial real estate5,443  1,063  
Construction and land development—  —  
Residential real estate1,941  1,942  
Consumer254  —  
Total non-accrual loans$26,255  $39,675  
Financing Receivable, Troubled Debt Restructuring
The table below presents loans restructured, excluding loans restructured as a result of the COVID-19 pandemic, during the three months ended March 31, 2020 and 2019, including the post-modification outstanding balance and the type of concession made:
Three Months Ended
March 31, 2020March 31, 2019
(Dollars in thousands)
Commercial
- Interest rate reduction$3,171  $—  
- Reduction of monthly payment—  4,761  
Energy
- Extension of maturity date2,340  —  
Total troubled debt restructurings$5,511  $4,761  
In addition, the balance of those loans that are in default at any time during the past twelve months at March 31, 2020 and December 31, 2019 is provided below:
March 31, 2020December 31, 2019
Number of LoansOutstanding Balance
Balance 90 days past due at any time during previous 12 months(1)
Number of LoansOutstanding Balance
Balance 90 days past due at any time during previous 12 months(1)
(Dollars in thousands)
Commercial6$9,966  $842  7$31,770  $831  
Energy35,100  —  22,864  —  
Commercial real estate34,772  —  34,909  —  
Construction and land development——  —  ——  —  
Residential real estate13,000  —  ——  —  
Consumer——  —  ——  —  
Total restructured loans13$22,838  $842  12$39,543  $831  
(1) Default is considered to mean 90 days or more past due as to interest or principal.