Loans and Allowance for Loan Losses ("ALLL") (Tables)

6 Months Ended

Jun. 30, 2022

Loans and Allowance for Loan Losses ("ALLL") [Abstract]

Category of Loans

June 30, 2022

December 31, 2021

(Dollars in thousands)

Commercial and industrial

$

812,411

$

843,024

Commercial and industrial lines of credit

787,664

617,398

Energy

233,000

278,579

Commercial real estate

1,435,893

1,278,479

Construction and land development

584,415

574,852

Residential real estate

371,337

360,046

Multifamily real estate

249,641

240,230

Consumer

53,873

63,605

Loans, net of unearned fees

4,528,234

4,256,213

Less: allowance for credit losses

(1)

55,817

58,375

Loans, net

$

4,472,417

$

4,197,838

(1)

 As of December 31, 2021, this line represents the allowance for loan and lease losses. See further discussion in "Note 1: Nature of

Operations and Summary of Significant Accounting Policies.”

Loans, Allowance for Loan Loss

For the Three Months Ended June 30, 2022

Commercial

and Industrial

Commercial

and

Industrial

Lines of

Credit

Energy

Commercial

Real Estate

Construction

and Land

Development

Residential

Real Estate

Multifamily

Real Estate

Consumer

Total

(Dollars in thousands)

Allowance for Credit Losses:

Beginning balance

$

9,981

$

9,361

$

7,507

$

18,628

$

3,678

$

3,089

$

2,342

$

645

$

55,231

Charge-offs

(581)

(750)

(2,900)

-

-

(217)

-

-

(4,448)

Recoveries

-

1,758

-

1,585

-

-

-

1

3,344

Provision (credit)

1,520

898

1,821

(3,171)

240

262

85

35

1,690

Ending balance

$

10,920

$

11,267

$

6,428

$

17,042

$

3,918

$

3,134

$

2,427

$

681

$

55,817

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures:

Beginning balance

$

66

$

153

$

258

$

753

$

3,514

$

4

$

116

$

11

$

4,875

Provision (credit)

(3)

(153)

212

(96)

502

-

(7)

(10)

445

Ending balance

$

63

$

-

$

470

$

657

$

4,016

$

4

$

109

$

1

$

5,320

For the Six Months Ended June 30, 2022

Commercial and

Industrial

(1)

Commercial

and

Industrial

Lines of

Credit

(1)

Energy

Commercial

Real Estate

Construction

and Land

Development

Residential

Real

Estate

(2)

Multifamily

Real

Estate

(2)

Consumer

Total

(Dollars in thousands)

Allowance for Credit Losses:

Beginning balance, prior to

adoption of ASU 2016-13

$

20,352

$

-

$

9,229

$

19,119

$

3,749

$

5,598

$

-

$

328

$

58,375

Impact of ASU 2016-13

adoption

(10,213)

8,866

(39)

(186)

(83)

(2,552)

2,465

(5)

(1,747)

Charge-offs

(790)

(1,971)

(3,967)

(1,102)

-

(217)

-

(13)

(8,060)

Recoveries

755

1,779

1,754

1,585

-

-

-

2

5,875

Provision (credit)

816

2,593

(549)

(2,374)

252

305

(38)

369

1,374

Ending balance

$

10,920

$

11,267

$

6,428

$

17,042

$

3,918

$

3,134

$

2,427

$

681

$

55,817

Allowance for Credit Losses on Off-Balance Sheet Credit Exposures:

Beginning balance, prior to

adoption of ASU 2016-13

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Impact of ASU 2016-13

adoption

107

44

265

711

3,914

5

137

1

5,184

Provision (credit)

(44)

(44)

205

(54)

102

(1)

(28)

-

136

Ending balance

$

63

$

-

$

470

$

657

$

4,016

$

4

$

109

$

1

$

5,320

(1)

 Prior to the adoption of ASU 2016-13, the Commercial and industrial and Commercial and industrial lines of credit were consolidated under the Commercial and industrial

segment.

(2)

 Prior to the adoption of ASU 2016-13, the Residential real estate and Multifamily real estate segments were consolidated under the Residential and Multifamily Real Estate

segment.

Three Months Ended June 30, 2021

Commercial

and

Industrial

Energy

Commercial

Real Estate

Construction

and Land

Development

Residential

and

Multifamily

Real Estate

PPP

Consumer

Total

(Dollars in thousands)

Allowance for loan losses:

Beginning

balance

$

23,464

$

20,292

$

20,609

$

3,837

$

6,056

$

-

$

293

$

74,551

Provision

7,532

(2,443)

(1,428)

48

(230)

-

21

3,500

Charge-offs

(2,566)

-

-

-

-

-

-

(2,566)

Recoveries

3

-

-

-

-

-

5

8

Ending balance

$

28,433

$

17,849

$

19,181

$

3,885

$

5,826

$

-

$

319

$

75,493

Six Months Ended June 30, 2021

Commercial

and

Industrial

Energy

Commercial

Real Estate

Construction

and Land

Development

Residential

and

Multifamily

Real Estate

PPP

Consumer

Total

(Dollars in thousands)

Allowance for loan losses:

Beginning

balance

$

24,693

$

18,341

$

22,354

$

3,612

$

5,842

$

-

$

453

$

75,295

Provision

14,547

(492)

(3,173)

273

(16)

-

(139)

11,000

Charge-offs

(10,832)

-

-

-

-

-

-

(10,832)

Recoveries

25

-

-

-

-

-

5

30

Ending balance

$

28,433

$

17,849

$

19,181

$

3,885

$

5,826

$

-

$

319

$

75,493

Loans, Credit Quality Indicators

As of June 30, 2022

Amortized Cost Basis by Origination Year and Internal Risk Rating

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

Loans

Revolving

Loans

converted to

Term Loans

Total

(Dollars in thousands)

Commercial and industrial

Pass

$

197,451

$

330,830

$

76,610

$

58,648

$

59,121

$

22,720

$

-

$

22,166

$

767,546

Special mention

721

-

14,488

1,060

313

69

-

3,414

20,065

Substandard - accrual

-

-

-

2,290

766

49

-

16,677

19,782

Substandard - non-

accrual

-

994

-

21

1,397

738

-

1,868

5,018

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

198,172

$

331,824

$

91,098

$

62,019

$

61,597

$

23,576

$

-

$

44,125

$

812,411

Commercial and industrial lines of credit

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

734,130

$

-

$

734,130

Special mention

-

-

-

-

-

-

35,139

-

35,139

Substandard - accrual

-

-

-

-

-

-

8,790

-

8,790

Substandard - non-

accrual

-

-

-

-

-

-

9,605

-

9,605

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

-

$

-

$

-

$

-

$

-

$

-

$

787,664

$

-

$

787,664

Energy

Pass

$

7,445

$

900

$

264

$

44

$

-

$

-

$

198,257

$

210

$

207,120

Special mention

-

1,469

-

-

-

-

12,494

-

13,963

Substandard - accrual

-

-

-

-

10

-

6,013

-

6,023

Substandard - non-

accrual

-

-

-

-

-

-

3,750

-

3,750

Doubtful

-

-

-

-

-

-

2,144

-

2,144

Total

$

7,445

$

2,369

$

264

$

44

$

10

$

-

$

222,658

$

210

$

233,000

As of June 30, 2022

Amortized Cost Basis by Origination Year and Internal Risk Rating

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

Loans

Revolving

Loans

converted to

Term Loans

Total

(Dollars in thousands)

Commercial real estate

Pass

$

219,481

$

273,536

$

152,920

$

114,384

$

71,024

$

83,540

$

330,625

$

100,089

$

1,345,599

Special mention

464

29,688

-

425

7,499

292

-

33,294

71,662

Substandard - accrual

10,681

-

-

-

-

-

-

992

11,673

Substandard - non-

accrual

-

2,498

292

-

77

1,109

-

2,983

6,959

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

230,626

$

305,722

$

153,212

$

114,809

$

78,600

$

84,941

$

330,625

$

137,358

$

1,435,893

Construction and land development

Pass

$

122,363

$

249,651

$

131,909

$

51,139

$

3,751

$

4,503

$

13,164

$

-

$

576,480

Special mention

-

7,935

-

-

-

-

-

-

7,935

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

122,363

$

257,586

$

131,909

$

51,139

$

3,751

$

4,503

$

13,164

$

-

$

584,415

Residential real estate

Pass

$

38,134

$

79,391

$

121,547

$

47,354

$

40,803

$

36,793

$

626

$

-

$

364,648

Special mention

-

-

-

-

-

-

-

-

-

Substandard - accrual

-

3,308

3,183

-

-

-

-

-

6,491

Substandard - non-

accrual

-

-

-

-

-

-

-

198

198

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

38,134

$

82,699

$

124,730

$

47,354

$

40,803

$

36,793

$

626

$

198

$

371,337

As of June 30, 2022

Amortized Cost Basis by Origination Year and Internal Risk Rating

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

Loans

Revolving

Loans

converted to

Term Loans

Total

(Dollars in thousands)

Multifamily real estate

Pass

$

58,346

$

28,407

$

5,424

$

12,070

$

3,115

$

1,901

$

123,802

$

16,538

$

249,603

Special mention

-

-

-

-

-

-

-

38

38

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

58,346

$

28,407

$

5,424

$

12,070

$

3,115

$

1,901

$

123,802

$

16,576

$

249,641

Consumer

Pass

$

1,811

$

2,691

$

1,975

$

233

$

114

$

10

$

47,039

$

-

$

53,873

Special mention

-

-

-

-

-

-

-

-

-

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

1,811

$

2,691

$

1,975

$

233

$

114

$

10

$

47,039

$

-

$

53,873

Total

Pass

$

645,031

$

965,406

$

490,649

$

283,872

$

177,928

$

149,467

$

1,447,643

$

139,003

$

4,298,999

Special mention

1,185

39,092

14,488

1,485

7,812

361

47,633

36,746

148,802

Substandard - accrual

10,681

3,308

3,183

2,290

776

49

14,803

17,669

52,759

Substandard - non-

accrual

-

3,492

292

21

1,474

1,847

13,355

5,049

25,530

Doubtful

-

-

-

-

-

-

2,144

-

2,144

Total

$

656,897

$

1,011,298

$

508,612

$

287,668

$

187,990

$

151,724

$

1,525,578

$

198,467

$

4,528,234

As of December 31, 2021

Pass

Special

Mention

Substandard

Performing

Substandard

Non-

performing

Doubtful

Loss

Total

(Dollars in thousands)

Commercial and

industrial

$

1,356,883

$

16,201

$

23,739

$

4,858

$

-

$

-

$

1,401,681

Energy

184,269

73,196

5,246

13,595

2,554

-

278,860

Commercial real

estate

1,172,323

86,768

11,782

10,222

-

-

1,281,095

Construction and

land development

578,758

-

-

-

-

-

578,758

Residential and

multifamily real

estate

593,847

257

6,508

204

-

-

600,816

PPP

64,805

-

-

-

-

-

64,805

Consumer

63,605

-

-

-

-

-

63,605

$

4,014,490

$

176,422

$

47,275

$

28,879

$

2,554

$

-

$

4,269,620

Loans, Past Due

As of June 30, 2022

Amortized Cost Basis by Origination Year and Past Due Status

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

loans

Revolving

loans

converted to

term loans

Total

(Dollars in thousands)

Commercial and industrial

30-59 days

$

-

$

-

$

7

$

88

$

-

$

-

$

-

$

126

$

221

60-89 days

-

-

-

-

-

74

-

-

74

Greater than 90 days

-

104

3

10

1,383

655

-

-

2,155

Total past due

-

104

10

98

1,383

729

-

126

2,450

Current

198,172

331,720

91,088

61,921

60,214

22,847

-

43,999

809,961

Total

$

198,172

$

331,824

$

91,098

$

62,019

$

61,597

$

23,576

$

-

$

44,125

$

812,411

Greater than 90 days

and accruing

$

-

$

-

$

3

$

-

$

-

$

-

$

-

$

-

$

3

Commercial and industrial lines of credit

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

2,086

$

-

$

2,086

60-89 days

-

-

-

-

-

-

784

-

784

Greater than 90 days

-

-

-

-

-

-

11,765

-

11,765

Total past due

-

-

-

-

-

-

14,635

-

14,635

Current

-

-

-

-

-

-

773,029

-

773,029

Total

$

-

$

-

$

-

$

-

$

-

$

-

$

787,664

$

-

$

787,664

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

2,160

$

-

$

2,160

Energy

30-59 days

$

-

$

1,469

$

-

$

-

$

-

$

-

$

-

$

-

$

1,469

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

5,894

-

5,894

Total past due

-

1,469

-

-

-

-

5,894

-

7,363

Current

7,445

900

264

44

10

-

216,764

210

225,637

Total

$

7,445

$

2,369

$

264

$

44

$

10

$

-

$

222,658

$

210

$

233,000

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

As of June 30, 2022

Amortized Cost Basis by Origination Year and Past Due Status

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

loans

Revolving

loans

converted to

term loans

Total

(Dollars in thousands)

Commercial real estate

30-59 days

$

-

$

9,662

$

-

$

-

$

-

$

-

$

-

$

-

$

9,662

60-89 days

-

-

-

-

77

-

-

-

77

Greater than 90 days

-

-

-

-

-

-

-

2,983

2,983

Total past due

-

9,662

-

-

77

-

-

2,983

12,722

Current

230,626

296,060

153,212

114,809

78,523

84,941

330,625

134,375

1,423,171

Total

$

230,626

$

305,722

$

153,212

$

114,809

$

78,600

$

84,941

$

330,625

$

137,358

$

1,435,893

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Construction and land development

30-59 days

$

-

$

-

$

-

$

2,097

$

-

$

-

$

-

$

-

$

2,097

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

-

2,097

-

-

-

-

2,097

Current

122,363

257,586

131,909

49,042

3,751

4,503

13,164

-

582,318

Total

$

122,363

$

257,586

$

131,909

$

51,139

$

3,751

$

4,503

$

13,164

$

-

$

584,415

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Residential real estate

30-59 days

$

-

$

121

$

-

$

-

$

-

$

-

$

-

$

-

$

121

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

121

-

-

-

-

-

-

121

Current

38,134

82,578

124,730

47,354

40,803

36,793

626

198

371,216

Total

$

38,134

$

82,699

$

124,730

$

47,354

$

40,803

$

36,793

$

626

$

198

$

371,337

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

As of June 30, 2022

Amortized Cost Basis by Origination Year and Past Due Status

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

loans

Revolving

loans

converted to

term loans

Total

(Dollars in thousands)

Multifamily real estate

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

-

-

-

-

-

-

-

Current

58,346

28,407

5,424

12,070

3,115

1,901

123,802

16,576

249,641

Total

$

58,346

$

28,407

$

5,424

$

12,070

$

3,115

$

1,901

$

123,802

$

16,576

$

249,641

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Consumer

30-59 days

$

-

$

44

$

-

$

-

$

-

$

-

$

-

$

-

$

44

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

44

-

-

-

-

-

-

44

Current

1,811

2,647

1,975

233

114

10

47,039

-

53,829

Total

$

1,811

$

2,691

$

1,975

$

233

$

114

$

10

$

47,039

$

-

$

53,873

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Total

30-59 days

$

-

$

11,296

$

7

$

2,185

$

-

$

-

$

2,086

$

126

$

15,700

60-89 days

-

-

-

-

77

74

784

-

935

Greater than 90 days

-

104

3

10

1,383

655

17,659

2,983

22,797

Total past due

-

11,400

10

2,195

1,460

729

20,529

3,109

39,432

Current

656,897

999,898

508,602

285,473

186,530

150,995

1,505,049

195,358

4,488,802

Total

$

656,897

$

1,011,298

$

508,612

$

287,668

$

187,990

$

151,724

$

1,525,578

$

198,467

$

4,528,234

Greater than 90 days

and accruing

$

-

$

-

$

3

$

-

$

-

$

-

$

2,160

$

-

$

2,163

As of December 31, 2021

30-59 Days

Past Due

60-89 Days

Past Due

90 Days or

More

Total Past

Due

Current

Total Loans

Receivable

Loans >= 90

Days and

Accruing

(Dollars in thousands)

Commercial and industrial

$

183

$

499

$

1,037

$

1,719

$

1,399,962

$

1,401,681

$

90

Energy

-

-

4,644

4,644

274,216

278,860

-

Commercial real estate

85

992

-

1,077

1,280,018

1,281,095

-

Construction and land

development

966

117

-

1,083

577,675

578,758

-

Residential and multifamily

real estate

437

151

-

588

600,228

600,816

-

PPP

-

-

-

-

64,805

64,805

-

Consumer

-

99

-

99

63,506

63,605

-

$

1,671

$

1,858

$

5,681

$

9,210

$

4,260,410

$

4,269,620

$

90

Loans, Impaired

As of June 30, 2022

Loan Segment and Collateral Description

Amortized Cost of

Collateral Dependent

Loans

Related Allowance for

Credit Losses

Amortized Cost of

Collateral Dependent

Loans with no related

Allowance

(Dollars in thousands)

Commercial and Industrial

All business assets

$

5,010

$

103

$

4,906

Commercial and Industrial Lines of Credit

All business assets

9,626

-

9,626

Energy

Oil and natural gas properties

5,894

-

5,894

Commercial Real Estate

Commercial real estate properties

3,978

77

3,901

$

24,508

$

180

$

24,327

As of December 31, 2021

Commercial

and

Industrial

Energy

Commercial

Real Estate

Construction

and Land

Development

Residential

and

Multifamily

Real Estate

PPP

Consumer

Total

(Dollars in thousands)

Period end allowance for loan losses allocated to:

Individually

evaluated for

impairment

$

333

$

2,100

$

3,164

$

-

$

-

$

-

$

-

$

5,597

Collectively

evaluated for

impairment

20,019

7,129

15,955

3,749

5,598

-

328

52,778

Ending

balance

$

20,352

$

9,229

$

19,119

$

3,749

$

5,598

$

-

$

328

$

58,375

Allocated to loans:

Individually

evaluated for

impairment

$

5,739

$

16,204

$

31,597

$

-

$

3,387

$

-

$

-

$

56,927

Collectively

evaluated for

impairment

1,395,942

262,656

1,249,498

578,758

597,429

64,805

63,605

4,212,693

Ending

balance

$

1,401,681

$

278,860

$

1,281,095

$

578,758

$

600,816

$

64,805

$

63,605

$

4,269,620

As of December 31, 2021

Recorded Balance

Unpaid Principal Balance

Specific Allowance

(Dollars in thousands)

 Loans without a specific valuation 

Commercial and industrial

$

4,659

$

4,740

$

-

 Energy 

3,509

7,322

-

Commercial real estate

1,729

1,729

-

 Construction and land development 

-

-

-

Residential and multifamily real estate

3,387

3,387

-

 PPP 

-

-

-

Consumer

-

-

-

 Loans with a specific valuation 

Commercial and industrial

1,080

1,080

333

 Energy 

12,695

17,977

2,100

Commercial real estate

29,868

30,854

3,164

 Construction and land development 

-

-

-

Residential and multifamily real estate

-

-

-

 PPP 

-

-

-

Consumer

-

-

-

 Total 

Commercial and industrial

5,739

5,820

333

 Energy 

16,204

25,299

2,100

Commercial real estate

31,597

32,583

3,164

 Construction and land development 

-

-

-

Residential and multifamily real estate

3,387

3,387

-

 PPP 

-

-

-

Consumer

-

-

-

$

56,927

$

67,089

$

5,597

Loans, Nonaccrual

As of June 30, 2022

Amortized Cost Basis by Origination Year and On Non-accrual

Amortized Cost Basis

2022

2021

2020

2019

2018

2017 and

Prior

Revolving

loans

Revolving

loans

converted

to term

loans

Total Non-

accrual

Loans

Non-accrual

Loans with no

related

Allowance

(Dollars in thousands)

Commercial and industrial

$

-

$

994

$

-

$

21

$

1,397

$

738

$

-

$

1,868

$

5,018

$

4,906

Commercial and industrial

lines of credit

-

-

-

-

-

-

9,605

-

9,605

9,605

Energy

-

-

-

-

-

-

5,894

-

5,894

698

Commercial real estate

-

2,498

292

-

77

1,109

-

2,983

6,959

6,882

Construction and land

development

-

-

-

-

-

-

-

-

-

-

Residential real estate

-

-

-

-

-

-

-

198

198

198

Multifamily real estate

-

-

-

-

-

-

-

-

-

-

Consumer

-

-

-

-

-

-

-

-

-

-

Total

$

-

$

3,492

$

292

$

21

$

1,474

$

1,847

$

15,499

$

5,049

$

27,674

$

22,289

December 31, 2021

(Dollars in thousands)

Commercial and industrial

$

4,858

Energy

16,148

Commercial real estate

10,222

Construction and land development

-

Residential and multifamily real estate

204

PPP

-

Consumer

-

Total non-accrual loans

$

31,432