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Loans and Allowance for Loan Losses ("ALLL") (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Category of Loans
Categories of loans at September 30, 2020 and December 31, 2019 include:
September 30, 2020December 31, 2019
(Dollars in thousands)
Commercial$1,291,572 $1,356,817 
Energy384,181 408,573 
Commercial real estate1,195,631 1,024,041 
Construction and land development587,617 628,418 
Residential real estate618,082 398,695 
Paycheck Protection Program (“PPP”)369,260 — 
Consumer46,771 45,163 
Gross loans4,493,114 3,861,707 
Less: Allowance for loan losses76,035 56,896 
Less: Net deferred loan fees and costs15,305 9,463 
Net loans$4,401,774 $3,795,348 
Loans, Allowance for Loan Loss
The following tables summarize the activity in the ALLL 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 September 30, 2020
Allowance for loan losses
Beginning balance
$26,543 $17,372 $16,899 $5,019 $4,868 $— $484 $71,185 
Provision charged to expense
7,439 2,168 908 (530)882 — 8 10,875 
Charge-offs(5,781)— — — (256)— — (6,037)
Recoveries2 — — — — — 10 12 
Ending balance$28,203 $19,540 $17,807 $4,489 $5,494 $— $502 $76,035 
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
Three months ended September 30, 2019
Allowance for loan losses
Beginning balance$22,975 $7,300 $7,533 $2,602 $2,138 $— $304 $42,852 
Provision charged to expense3,535 1,077 (249)414 82 — (9)4,850 
Charge-offs(1,700)(3,000)— — — — (8)(4,708)
Recoveries1 — — — — — — 1 
Ending balance$24,811 $5,377 $7,284 $3,016 $2,220 $— $287 $42,995 
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
Nine months ended September 30, 2020
Allowance for loan losses
Beginning balance$35,864 $6,565 $8,085 $3,516 $2,546 $— $320 $56,896 
Provision charged to expense16,210 15,253 9,722 973 3,393 — 274 45,825 
Charge-offs(23,946)(2,278)— — (445)— (104)(26,773)
Recoveries75 — — — — — 12 87 
Ending balance$28,203 $19,540 $17,807 $4,489 $5,494 $— $502 $76,035 
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
Nine months ended September 30, 2019
Allowance for loan losses
Beginning balance$16,584 $10,262 $6,755 $2,475 $1,464 $— $286 $37,826 
Provision charged to expense11,166 (2,461)529 541 756 — $19 10,550 
Charge-offs(2,954)(3,000)— — — — (19)(5,973)
Recoveries15 576 — — — — 1 592 
Ending balance$24,811 $5,377 $7,284 $3,016 $2,220 $— $287 $42,995 
CommercialEnergyCommercial Real EstateConstruction and Land DevelopmentResidential Real EstatePPPConsumerTotal
(Dollars in thousands)
September 30, 2020
Period end allowance for loan losses allocated to:
Individually evaluated for impairment$2,432 $2,540 $1,525 $— $— $— $— $6,497 
Collectively evaluated for impairment$25,771 $17,000 $16,282 $4,489 $5,494 $— $502 $69,538 
Ending balance$28,203 $19,540 $17,807 $4,489 $5,494 $— $502 $76,035 
Allocated to loans:
Individually evaluated for impairment$38,589 $21,318 $17,035 $— $6,406 $— $246 $83,594 
Collectively evaluated for impairment$1,252,983 $362,863 $1,178,596 $587,617 $611,676 $369,260 $46,525 $4,409,520 
Ending balance$1,291,572 $384,181 $1,195,631 $587,617 $618,082 $369,260 $46,771 $4,493,114 


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 internal rating categories (grades 1 - 8), portfolio segmentation, and payment activity:
PassSpecial MentionSubstandard
Performing		Substandard
Nonperforming		DoubtfulLossTotal
(Dollars in thousands)
September 30, 2020
Commercial$1,106,338 $71,746 $75,714 $34,528 $3,246 $— $1,291,572 
Energy186,881 58,726 117,389 17,435 3,750 — 384,181 
Commercial real estate1,114,802 41,030 26,624 12,377 798 — 1,195,631 
Construction and land development
581,160 5,299 1,158 — — — 587,617 
Residential real estate610,909 527 3,467 3,179 — — 618,082 
PPP369,260 — — — — — 369,260 
Consumer46,525 — — 246 — — 46,771 
$4,015,875 $177,328 $224,352 $67,765 $7,794 $— $4,493,114 

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 as of September 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)
September 30, 2020
Commercial$12,274 $28,487 $6,641 $47,402 $1,244,170 $1,291,572 $1,141 
Energy— 1,540 3,055 4,595 379,586 384,181 — 
Commercial real estate1,459 — 4,475 5,934 1,189,697 1,195,631 — 
Construction and land development
— — — — 587,617 587,617 — 
Residential real estate1,591 — 6,124 7,715 610,367 618,082 3,183 
PPP— — — — 369,260 369,260 — 
Consumer— — — — 46,771 46,771 — 
$15,324 $30,027 $20,295 $65,646 $4,427,468 $4,493,114 $4,324 

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 September 30, 2020 and December 31, 2019:
Unpaid
Recorded BalancePrincipal BalanceSpecific Allowance
(Dollars in thousands)
September 30, 2020
Loans without a specific valuation
Commercial$29,439 $35,220 $— 
Energy— — — 
Commercial real estate4,628 4,628 — 
Construction and land development— — — 
Residential real estate6,406 6,662 — 
PPP— — — 
Consumer246 246 — 
Loans with a specific valuation
Commercial9,150 20,538 2,432 
Energy21,318 26,597 2,540 
Commercial real estate12,407 13,206 1,525 
Construction and land development— — — 
Residential real estate— — — 
PPP— — — 
Consumer— — — 
Total
Commercial38,589 55,758 2,432 
Energy21,318 26,597 2,540 
Commercial real estate17,035 17,834 1,525 
Construction and land development— — — 
Residential real estate6,406 6,662 — 
PPP— — — 
Consumer246 246 — 
$83,594 $107,097 $6,497 
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 nine month periods ended September 30, 2020 and 2019 for impaired loans, including all restructured and formerly restructured loans, held at the end of each period:
Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
(Dollars in thousands)
Commercial$12 $386 $841 $862 
Energy2 98 257 324 
Commercial real estate58 200 346 613 
Construction and land development— — — — 
Residential real estate36 8 108 17 
PPP— — — — 
Consumer— — — — 
Total interest income recognized$108 $692 $1,552 $1,816 
The table below shows the three and nine month average balance of impaired loans for the periods ended September 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 EndedNine Months Ended
September 30,September 30,
2020201920202019
(Dollars in thousands)
Commercial$45,482 $54,410 $49,538 $49,265 
Energy21,396 13,623 23,220 15,091 
Commercial real estate17,937 16,690 18,132 16,528 
Construction and land development— — — — 
Residential real estate6,419 2,538 6,304 2,354 
PPP— — — — 
Consumer248 — 253 — 
Total average impaired loans$91,482 $87,261 $97,447 $83,238 
Loans, Nonaccrual The following table presents the Company’s non-accrual loans by loan category at September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
(Dollars in thousands)
Commercial$37,774 $32,130 
Energy21,185 4,540 
Commercial real estate13,176 1,063 
Construction and land development— — 
Residential real estate3,179 1,942 
PPP— — 
Consumer246 — 
Total non-accrual loans$75,560 $39,675 
Loans, Troubled Debt Restructuring
The table below presents loans restructured, excluding loans restructured as a result of the COVID-19 pandemic, during the three and nine months ended September 30, 2020 and 2019, including the post-modification outstanding balance and the type of concession made:
Three Months EndedNine Months Ended
September 30,September 30,September 30,September 30,
2020201920202019
(Dollars in thousands)
Commercial
- Interest rate reduction$— $— $3,171 $— 
- Reduction of monthly payment— — — 994 
- Extension of maturity date— — — 30,005 
Energy
- Extension of maturity date— — 2,340 — 
Commercial real estate
- Reduction of monthly payment— — — 3,767 
Residential real estate
- Payment deferral— — 65 — 
Total troubled debt restructurings$— $— $5,576 $34,766 
In addition, the balance of those loans that are in default at any time during the past twelve months at September 30, 2020 and December 31, 2019 is provided below:
September 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$7,895 $3,762 7$31,770 $831 
Energy33,373 2,713 22,864 — 
Commercial real estate34,683 — 34,909 — 
Construction and land development—— — —— — 
Residential real estate23,247 45 —— — 
PPP—— — —— — 
Consumer—— — —— — 
Total troubled debt restructured loans14$19,198 $6,520 12$39,543 $831 
(1) Default is considered to mean 90 days or more past due as to interest or principal.