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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Category of Loans
Categories of loans at June 30, 2020 and December 31, 2019 include:
June 30, 2020December 31, 2019
(Dollars in thousands)
Commercial$1,284,919  $1,356,817  
Energy390,346  408,573  
Commercial real estate1,141,277  1,024,041  
Construction and land development661,691  628,418  
Residential real estate536,270  398,695  
Paycheck Protection Program (“PPP”)369,022  —  
Consumer45,716  45,163  
Gross loans4,429,241  3,861,707  
Less: Allowance for loan losses71,185  56,896  
Less: Net deferred loan fees and costs16,017  9,463  
Net loans$4,342,039  $3,795,348  
Loans, Allowance for Loan 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 EstatePPPConsumerTotal
(Dollars in thousands)
Three months ended June 30, 2020
Allowance for loan losses
Beginning balance
$21,129  $7,599  $12,623  $5,021  $4,687  $—  $399  $51,458  
Provision charged to expense
5,499  10,773  4,276  (2) 370  —  84  21,000  
Charge-offs(87) (1,000) —  —  (189) —  —  (1,276) 
Recoveries2  —  —  —  —  —  1  3  
Ending balance$26,543  $17,372  $16,899  $5,019  $4,868  $—  $484  $71,185  

CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
Three months ended June 30, 2019
Allowance for loan losses
Beginning balance$20,506  $7,090  $7,471  $2,585  $2,047  $—  $302  $40,001  
Provision charged to expense
2,468  210  62  17  91  —  2  2,850  
Charge-offs—  —  —  —  —  —  (1) (1) 
Recoveries1  —  —  —  —  —  1  2  
Ending balance$22,975  $7,300  $7,533  $2,602  $2,138  $—  $304  $42,852  
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
Six months ended June 30, 2020
Allowance for loan losses
Beginning balance$35,864  $6,565  $8,085  $3,516  $2,546  $—  $320  $56,896  
Provision charged to expense8,771  13,085  8,814  1,503  2,511  —  266  34,950  
Charge-offs(18,165) (2,278) —  —  (189) —  (104) (20,736) 
Recoveries73  —  —  —  —  —  2  75  
Ending balance$26,543  $17,372  $16,899  $5,019  $4,868  $—  $484  $71,185  
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
Six months ended June 30, 2019
Allowance for loan losses
Beginning balance$16,584  $10,262  $6,755  $2,475  $1,464  $—  $286  $37,826  
Provision charged to expense
7,631  (3,538) 778  127  674  —  $28  5,700  
Charge-offs(1,254) —  —  —  —  —  (11) (1,265) 
Recoveries14  576  —  —  —  —  1  591  
Ending balance$22,975  $7,300  $7,533  $2,602  $2,138  $—  $304  $42,852  

CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
June 30, 2020
Period end allowance for loan losses allocated to:
Individually evaluated for impairment
$2,933  $1,942  $1,704  $—  $413  $—  $—  $6,992  
Collectively evaluated for impairment
$23,610  $15,430  $15,195  $5,019  $4,455  $—  $484  $64,193  
Ending balance$26,543  $17,372  $16,899  $5,019  $4,868  $—  $484  $71,185  
Allocated to loans:
Individually evaluated for impairment
$11,831  $15,532  $10,909  $—  $6,981  $—  $249  $45,502  
Collectively evaluated for impairment
$1,273,088  $374,814  $1,130,368  $661,691  $529,289  $369,022  $45,467  $4,383,739  
Ending balance$1,284,919  $390,346  $1,141,277  $661,691  $536,270  $369,022  $45,716  $4,429,241  
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
December 31, 2019
Period end allowance for loan losses allocated to:
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  
Ending balance$35,864  $6,565  $8,085  $3,516  $2,546  $—  $320  $56,896  
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  
Loans, Credit Quality Indicators
The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating categories (grades 1 - 8), portfolio segmentation, and payment activity:
PassSpecial MentionSubstandard
Performing		Substandard
Nonperforming		DoubtfulLossTotal
(Dollars in thousands)
June 30, 2020
Commercial$1,143,316  $53,411  $77,226  $7,662  $3,304  $—  $1,284,919  
Energy210,557  71,837  92,568  10,997  4,387  —  390,346  
Commercial real estate1,069,590  39,332  25,355  6,187  813  —  1,141,277  
Construction and land development
655,200  5,330  1,161  —  —  —  661,691  
Residential real estate528,510  540  3,285  3,935  —  —  536,270  
PPP369,022  —  —  —  —  —  369,022  
Consumer45,467  —  —  249  —  —  45,716  
$4,021,662  $170,450  $199,595  $29,030  $8,504  $—  $4,429,241  
PassSpecial MentionSubstandard
Performing		Substandard
Nonperforming		DoubtfulLossTotal
(Dollars in thousands)
December 31, 2019
Commercial$1,258,952  $27,069  $38,666  $32,130  $—  $—  $1,356,817  
Energy392,233  9,460  2,340  —  4,540  —  408,573  
Commercial real estate1,007,921  9,311  5,746  120  943  —  1,024,041  
Construction and land development
628,418  —  —  —  —  —  628,418  
Residential real estate394,495  1,789  469  1,942  —  —  398,695  
PPP—  —  —  —  —  —  —  
Consumer45,163  —  —  —  —  —  45,163  
$3,727,182  $47,629  $47,221  $34,192  $5,483  $—  $3,861,707  
Loans, Past Due
The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 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)
June 30, 2020
Commercial$4,645  $3,391  $7,315  $15,351  $1,269,568  $1,284,919  $—  
Energy—  16,918  4,440  21,358  368,988  390,346  —  
Commercial real estate8,009  230  4,481  12,720  1,128,557  1,141,277  —  
Construction and land development
194  —  —  194  661,497  661,691  —  
Residential real estate1,357  —  3,915  5,272  530,998  536,270  220  
PPP—  —  —  —  369,022  369,022  —  
Consumer—  137  —  137  45,579  45,716  —  
$14,205  $20,676  $20,151  $55,032  $4,374,209  $4,429,241  $220  

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  —  
PPP—  —  —  —  —  —  —  
Consumer2  254  —  256  44,907  45,163  —  
$6,292  $530  $42,012  $48,834  $3,812,873  $3,861,707  $4,591  
Loans, Impaired
The following tables present loans individually evaluated for impairment, including all restructured and formerly restructured loans, for the periods ended June 30, 2020 and December 31, 2019:
Unpaid
Recorded BalancePrincipal BalanceSpecific Allowance
(Dollars in thousands)
June 30, 2020
Loans without a specific valuation
Commercial$70  $70  $—  
Energy—  —  —  
Commercial real estate763  854  —  
Construction and land development—  —  —  
Residential real estate5,404  5,404  —  
PPP—  —  —  
Consumer249  249  —  
Loans with a specific valuation
Commercial11,761  29,710  2,933  
Energy15,532  18,244  1,942  
Commercial real estate10,146  10,146  1,704  
Construction and land development—  —  —  
Residential real estate1,577  1,577  413  
PPP—  —  —  
Consumer—  —  —  
Total
Commercial11,831  29,780  2,933  
Energy15,532  18,244  1,942  
Commercial real estate10,909  11,000  1,704  
Construction and land development—  —  —  
Residential real estate6,981  6,981  413  
PPP—  —  —  
Consumer249  249  —  
$45,502  $66,254  $6,992  
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  —  
PPP—  —  —  
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  
PPP—  —  —  
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  
PPP—  —  —  
Consumer—  —  —  
$93,500  $101,500  $22,298  
The table below shows interest income recognized during the three and six month periods ended June 30, 2020 and 2019 for impaired loans, including all restructured and formerly restructured loans, held at the end of each period:
Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
(Dollars in thousands)
Commercial$27  $781  $88  $1,564  
Energy46  53  210  109  
Commercial real estate58  278  135  532  
Construction and land development—  —  —  1  
Residential real estate35  10  74  21  
PPP—  —  —  —  
Consumer—  —  —  —  
Total interest income recognized$166  $1,122  $507  $2,227  
The table below shows the three and six month average balance of impaired loans as of June 30, 2020 and 2019 by loan category for impaired loans, including all restructured and formerly restructured loans, held at the end of each period:
Three Months EndedSix Months Ended
June 30,June 30,
2020201920202019
(Dollars in thousands)
Commercial$11,793  $50,732  $19,002  $74,259  
Energy16,798  12,534  17,527  13,850  
Commercial real estate10,958  13,779  11,044  14,661  
Construction and land development—  50  —  25  
Residential real estate7,171  2,665  6,953  2,428  
PPP—  —  —  —  
Consumer251  —  253  —  
Total average impaired loans$46,971  $79,760  $54,779  $105,223  
Loans, Nonaccrual The following table presents the Company’s non-accrual loans by loan category at June 30, 2020 and December 31, 2019:
June 30, 2020December 31, 2019
(Dollars in thousands)
Commercial$10,966  $32,130  
Energy15,384  4,540  
Commercial real estate7,000  1,063  
Construction and land development—  —  
Residential real estate3,935  1,942  
PPP—  —  
Consumer249  —  
Total non-accrual loans$37,534  $39,675  
Loans, Troubled Debt Restructuring
The table below presents loans restructured, excluding loans restructured as a result of the COVID-19 pandemic, during the three and six months ended June 30, 2020 and 2019, including the post-modification outstanding balance and the type of concession made:
Three Months EndedSix Months Ended
June 30,June 30,June 30,June 30,
2020201920202019
(Dollars in thousands)
Commercial
- Interest rate reduction$—  $—  $3,171  $—  
- Reduction of monthly payment—  —  —  994  
- Extension of maturity date—  30,005  —  30,005  
Energy
- Extension of maturity date—  —  2,340  —  
Commercial real estate
- Reduction of monthly payment—  —  —  3,767  
Residential real estate
- Payment deferral65  —  65  —  
Total troubled debt restructurings during applicable period$65  $30,005  $5,576  $34,766  
In addition, the balance of those loans that are in default at any time during the past twelve months at June 30, 2020 and December 31, 2019 is provided below:
June 30, 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$9,657  $842  7$31,770  $831  
Energy34,032  —  22,864  —  
Commercial real estate34,749  —  34,909  —  
Construction and land development——  —  ——  —  
Residential real estate23,065  —  ——  —  
PPP——  —  ——  —  
Consumer——  —  ——  —  
Total troubled debt restructured loans14$21,503  $842  12$39,543  $831  
(1) Default is considered to mean 90 days or more past due as to interest or principal.