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

9 Months Ended

Sep. 30, 2022

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

Category of Loans

September 30, 2022

December 31, 2021

(Dollars in thousands)

Commercial and industrial

$

857,836

$

843,024

Commercial and industrial lines of credit

831,187

617,398

Energy

178,855

278,579

Commercial real estate

1,400,338

1,278,479

Construction and land development

674,041

574,852

Residential real estate

393,867

360,046

Multifamily real estate

275,795

240,230

Consumer

65,727

63,605

Loans, net of unearned fees

4,677,646

4,256,213

Less: allowance for credit losses

(1)

55,864

58,375

Loans, net

$

4,621,782

$

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, Company's Loan Portfolio Internal Rating Categories Loan Segments

As of September 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

$

285,880

$

287,991

$

70,591

$

55,167

$

55,665

$

21,134

$

-

$

30,392

$

806,820

Special mention

1,283

2,241

12,063

996

302

112

-

6,501

23,498

Substandard - accrual

-

455

1,485

2,165

758

46

-

20,416

25,325

Substandard - non-

accrual

-

104

-

6

1,383

700

-

-

2,193

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

287,163

$

290,791

$

84,139

$

58,334

$

58,108

$

21,992

$

-

$

57,309

$

857,836

Commercial and industrial lines of credit

Pass

$

-

$

-

$

-

$

-

$

-

$

-

$

780,710

$

-

$

780,710

Special mention

-

-

-

-

-

-

32,814

-

32,814

Substandard - accrual

-

-

-

-

-

-

11,188

-

11,188

Substandard - non-

accrual

-

-

-

-

-

-

6,475

-

6,475

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

-

$

-

$

-

$

-

$

-

$

-

$

831,187

$

-

$

831,187

Energy

Pass

$

7,446

$

403

$

246

$

-

$

7

$

-

$

156,119

$

188

$

164,409

Special mention

-

-

-

-

-

-

7,152

-

7,152

Substandard - accrual

-

-

-

-

-

-

2,131

-

2,131

Substandard - non-

accrual

-

-

-

-

-

-

3,375

-

3,375

Doubtful

-

-

-

-

-

-

1,788

-

1,788

Total

$

7,446

$

403

$

246

$

-

$

7

$

-

$

170,565

$

188

$

178,855

As of September 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

$

270,669

$

259,299

$

145,530

$

110,155

$

67,990

$

74,465

$

293,169

$

98,783

$

1,320,060

Special mention

11,927

9,870

-

422

6,280

290

2,420

33,086

64,295

Substandard - accrual

10,535

-

327

-

-

1,232

-

992

13,086

Substandard - non-

accrual

408

2,489

-

-

-

-

-

-

2,897

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

293,539

$

271,658

$

145,857

$

110,577

$

74,270

$

75,987

$

295,589

$

132,861

$

1,400,338

Construction and land development

Pass

$

205,062

$

290,753

$

126,364

$

24,323

$

3,663

$

1,367

$

14,679

$

-

$

666,211

Special mention

-

7,830

-

-

-

-

-

-

7,830

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

205,062

$

298,583

$

126,364

$

24,323

$

3,663

$

1,367

$

14,679

$

-

$

674,041

Residential real estate

Pass

$

64,540

$

79,235

$

120,891

$

46,023

$

38,417

$

35,590

$

1,894

$

-

$

386,590

Special mention

253

3,290

-

231

-

-

-

-

3,774

Substandard - accrual

142

-

3,166

-

-

-

-

-

3,308

Substandard - non-

accrual

-

-

-

-

-

-

-

195

195

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

64,935

$

82,525

$

124,057

$

46,254

$

38,417

$

35,590

$

1,894

$

195

$

393,867

As of September 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

$

78,194

$

33,272

$

5,363

$

12,005

$

3,078

$

822

$

126,518

$

16,506

$

275,758

Special mention

-

-

-

-

-

-

-

37

37

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

78,194

$

33,272

$

5,363

$

12,005

$

3,078

$

822

$

126,518

$

16,543

$

275,795

Consumer

Pass

$

11,629

$

2,512

$

1,914

$

221

$

110

$

30

$

49,311

$

-

$

65,727

Special mention

-

-

-

-

-

-

-

-

-

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

11,629

$

2,512

$

1,914

$

221

$

110

$

30

$

49,311

$

-

$

65,727

Total

Pass

$

923,420

$

953,465

$

470,899

$

247,894

$

168,930

$

133,408

$

1,422,400

$

145,869

$

4,466,285

Special mention

13,463

23,231

12,063

1,649

6,582

402

42,386

39,624

139,400

Substandard - accrual

10,677

455

4,978

2,165

758

1,278

13,319

21,408

55,038

Substandard - non-

accrual

408

2,593

-

6

1,383

700

9,850

195

15,135

Doubtful

-

-

-

-

-

-

1,788

-

1,788

Total

$

947,968

$

979,744

$

487,940

$

251,714

$

177,653

$

135,788

$

1,489,743

$

207,096

$

4,677,646

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, Loan Aging Analysis

As of September 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

$

600

$

-

$

-

$

15

$

-

$

-

$

-

$

-

$

615

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

124

7

75

1,383

655

-

-

2,244

Total past due

600

124

7

90

1,383

655

-

-

2,859

Current

286,563

290,667

84,132

58,244

56,725

21,337

-

57,309

854,977

Total

$

287,163

$

290,791

$

84,139

$

58,334

$

58,108

$

21,992

$

-

$

57,309

$

857,836

Greater than 90 days

and accruing

$

-

$

20

$

7

$

73

$

-

$

-

$

-

$

-

$

100

Commercial and industrial lines of credit

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

3,796

$

-

$

3,796

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

1,568

-

1,568

Total past due

-

-

-

-

-

-

5,364

-

5,364

Current

-

-

-

-

-

-

825,823

-

825,823

Total

$

-

$

-

$

-

$

-

$

-

$

-

$

831,187

$

-

$

831,187

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

83

$

-

$

83

Energy

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

5,163

-

5,163

Total past due

-

-

-

-

-

-

5,163

-

5,163

Current

7,446

403

246

-

7

-

165,402

188

173,692

Total

$

7,446

$

403

$

246

$

-

$

7

$

-

$

170,565

$

188

$

178,855

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

As of September 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

$

408

$

-

$

-

$

-

$

-

$

195

$

-

$

-

$

603

60-89 days

-

-

-

-

-

1,032

-

-

1,032

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

408

-

-

-

-

1,227

-

-

1,635

Current

293,131

271,658

145,857

110,577

74,270

74,760

295,589

132,861

1,398,703

Total

$

293,539

$

271,658

$

145,857

$

110,577

$

74,270

$

75,987

$

295,589

$

132,861

$

1,400,338

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Construction and land development

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

10,629

$

-

$

10,629

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

-

-

-

-

10,629

-

10,629

Current

205,062

298,583

126,364

24,323

3,663

1,367

4,050

-

663,412

Total

$

205,062

$

298,583

$

126,364

$

24,323

$

3,663

$

1,367

$

14,679

$

-

$

674,041

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Residential real estate

30-59 days

$

142

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

142

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

120

-

-

-

-

-

-

120

Total past due

142

120

-

-

-

-

-

-

262

Current

64,793

82,405

124,057

46,254

38,417

35,590

1,894

195

393,605

Total

$

64,935

$

82,525

$

124,057

$

46,254

$

38,417

$

35,590

$

1,894

$

195

$

393,867

Greater than 90 days

and accruing

$

-

$

120

$

-

$

-

$

-

$

-

$

-

$

-

$

120

As of September 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

4,566

-

-

-

-

-

-

-

4,566

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

4,566

-

-

-

-

-

-

-

4,566

Current

73,628

33,272

5,363

12,005

3,078

822

126,518

16,543

271,229

Total

$

78,194

$

33,272

$

5,363

$

12,005

$

3,078

$

822

$

126,518

$

16,543

$

275,795

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Consumer

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

-

-

-

-

-

-

-

Current

11,629

2,512

1,914

221

110

30

49,311

-

65,727

Total

$

11,629

$

2,512

$

1,914

$

221

$

110

$

30

$

49,311

$

-

$

65,727

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Total

30-59 days

$

1,150

$

-

$

-

$

15

$

-

$

195

$

14,425

$

-

$

15,785

60-89 days

4,566

-

-

-

-

1,032

-

-

5,598

Greater than 90 days

-

244

7

75

1,383

655

6,731

-

9,095

Total past due

5,716

244

7

90

1,383

1,882

21,156

-

30,478

Current

942,252

979,500

487,933

251,624

176,270

133,906

1,468,587

207,096

4,647,168

Total

$

947,968

$

979,744

$

487,940

$

251,714

$

177,653

$

135,788

$

1,489,743

$

207,096

$

4,677,646

Greater than 90 days

and accruing

$

-

$

140

$

7

$

73

$

-

$

-

$

83

$

-

$

303

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, Nonaccrual

As of September 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

$

-

$

104

$

-

$

6

$

1,383

$

700

$

-

$

-

$

2,193

$

2,193

Commercial and industrial

lines of credit

-

-

-

-

-

-

6,475

-

6,475

6,475

Energy

-

-

-

-

-

-

5,163

-

5,163

3,587

Commercial real estate

408

2,489

-

-

-

-

-

-

2,897

2,897

Construction and land

development

-

-

-

-

-

-

-

-

-

-

Residential real estate

-

-

-

-

-

-

-

195

195

195

Multifamily real estate

-

-

-

-

-

-

-

-

-

-

Consumer

-

-

-

-

-

-

-

-

-

-

Total

$

408

$

2,593

$

-

$

6

$

1,383

$

700

$

11,638

$

195

$

16,923

$

15,347

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

Loans, Allowance for Credit Losses

For the Three Months Ended September 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

$

10,920

$

11,267

$

6,428

$

17,042

$

3,918

$

3,134

$

2,427

$

681

$

55,817

Charge-offs

-

(2,000)

(642)

-

-

-

-

-

(2,642)

Recoveries

-

9

-

748

-

-

-

9

766

Provision (credit)

417

2,781

(958)

(1,335)

669

103

246

-

1,923

Ending balance

$

11,337

$

12,057

$

4,828

$

16,455

$

4,587

$

3,237

$

2,673

$

690

$

55,864

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

Beginning balance

$

63

$

-

$

470

$

657

$

4,016

$

4

$

109

$

1

$

5,320

Provision (credit)

34

-

78

19

1,304

(2)

(25)

3

1,411

Ending balance

$

97

$

-

$

548

$

676

$

5,320

$

2

$

84

$

4

$

6,731

For the Nine Months Ended September 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)

(3,971)

(4,609)

(1,102)

-

(217)

-

(13)

(10,702)

Recoveries

755

1,788

1,754

2,333

-

-

-

11

6,641

Provision (credit)

1,233

5,374

(1,507)

(3,709)

921

408

208

369

3,297

Ending balance

$

11,337

$

12,057

$

4,828

$

16,455

$

4,587

$

3,237

$

2,673

$

690

$

55,864

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)

(10)

(44)

283

(35)

1,406

(3)

(53)

3

1,547

Ending balance

$

97

$

-

$

548

$

676

$

5,320

$

2

$

84

$

4

$

6,731

(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 September 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

$

28,433

$

17,849

$

19,181

$

3,885

$

5,826

$

-

$

319

$

75,493

Provision

(3,666)

(4,798)

(236)

(694)

(561)

-

(45)

(10,000)

Charge-offs

(1,071)

(503)

-

-

-

-

(1)

(1,575)

Recoveries

225

-

-

-

5

-

4

234

Ending balance

$

23,921

$

12,548

$

18,945

$

3,191

$

5,270

$

-

$

277

$

64,152

Nine Months Ended September 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

10,881

(5,290)

(3,409)

(421)

(577)

-

(184)

1,000

Charge-offs

(11,903)

(503)

-

-

-

-

(1)

(12,407)

Recoveries

250

-

-

-

5

-

9

264

Ending balance

$

23,921

$

12,548

$

18,945

$

3,191

$

5,270

$

-

$

277

$

64,152

Loans, Collateral Dependent Loans

As of September 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

$

2,668

$

-

$

2,668

Commercial and Industrial Lines of Credit

All business assets

5,519

-

5,519

Energy

Oil and natural gas properties

9,626

157

9,469

Commercial Real Estate

Commercial real estate properties

2,489

-

2,489

$

20,302

$

157

$

20,145

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