Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2023

Loans and Allowance for credit losses [Abstract]

Category of Loans

June 30, 2023

December 31, 2022

Amount

% of Loans

Amount

% of Loans

(Dollars in thousands)

Commercial and industrial

$

2,057,912

36

%

$

1,974,932

37

%

Energy

232,863

4

173,218

3

Commercial real estate - owner-occupied

542,827

9

437,119

8

Commercial real estate - non-owner-occupied

2,480,282

42

2,314,600

43

Residential real estate

439,434

8

439,367

8

Consumer

43,281

1

33,493

1

Loans, net of unearned fees

5,796,599

100

%

5,372,729

100

%

Less: allowance for credit losses on loans

(67,567)

(61,775)

Loans, net of the allowance for credit losses on loans

$

5,729,032

$

5,310,954

Company's Loan Portfolio Internal Rating Categories Loan Segments

As of June 30, 2023

Amortized Cost Basis by Origination Year and Internal Risk Rating

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

Loans

Revolving

Loans

converted to

Term Loans

Total

(Dollars in thousands)

Commercial and industrial

Pass

$

283,048

$

306,846

$

207,224

$

60,219

$

44,139

$

43,384

$

946,803

$

37,305

$

1,928,968

Special mention

11,750

5,809

16,002

2,310

758

305

34,185

6,785

77,904

Substandard - accrual

1,419

64

67

157

983

844

20,303

17,610

41,447

Substandard - non-

accrual

-

-

(8)

57

-

-

8,511

1,033

9,593

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

296,217

$

312,719

$

223,285

$

62,743

$

45,880

$

44,533

$

1,009,802

$

62,733

$

2,057,912

Energy

Pass

$

-

$

7,278

$

105

$

192

$

-

$

-

$

224,677

$

143

$

232,395

Special mention

-

-

-

-

-

-

-

-

-

Substandard - accrual

-

-

-

-

-

-

-

-

-

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

468

-

468

Total

$

-

$

7,278

$

105

$

192

$

-

$

-

$

225,145

$

143

$

232,863

Commercial real estate

- owner-occupied

Pass

$

43,160

$

77,915

$

134,076

$

59,154

$

49,994

$

37,095

$

72,630

$

39,009

$

513,033

Special mention

10,311

5,847

5,905

431

1,196

5,267

-

-

28,957

Substandard - accrual

65

-

203

407

89

73

-

-

837

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

53,536

$

83,762

$

140,184

$

59,992

$

51,279

$

42,435

$

72,630

$

39,009

$

542,827

As of June 30, 2023

Amortized Cost Basis by Origination Year and Internal Risk Rating

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

Loans

Revolving

Loans

converted to

Term Loans

Total

(Dollars in thousands)

Commercial real estate - non-owner-

occupied

Pass

$

292,061

$

915,099

$

298,948

$

147,121

$

79,500

$

80,385

$

535,380

$

89,707

$

2,438,201

Special mention

-

-

7,528

137

16,398

4,154

-

33

28,250

Substandard - accrual

10,092

365

-

-

-

314

439

-

11,210

Substandard - non-

accrual

-

-

2,448

173

-

-

-

-

2,621

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

302,153

$

915,464

$

308,924

$

147,431

$

95,898

$

84,853

$

535,819

$

89,740

$

2,480,282

Residential real estate

Pass

$

19,066

$

76,723

$

86,898

$

115,256

$

39,976

$

67,055

$

26,962

$

-

$

431,936

Special mention

253

-

3,560

165

210

-

-

-

4,188

Substandard - accrual

-

-

-

3,125

-

-

-

-

3,125

Substandard - non-

accrual

-

-

-

-

-

-

-

185

185

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

19,319

$

76,723

$

90,458

$

118,546

$

40,186

$

67,055

$

26,962

$

185

$

439,434

Consumer

Pass

$

8,007

$

6,360

$

621

$

113

$

245

$

123

$

27,776

$

-

$

43,245

Special mention

-

-

-

-

-

7

-

-

7

Substandard - accrual

-

-

-

29

-

-

-

-

29

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Total

$

8,007

$

6,360

$

621

$

142

$

245

$

130

$

27,776

$

-

$

43,281

As of June 30, 2023

Amortized Cost Basis by Origination Year and Internal Risk Rating

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

Loans

Revolving

Loans

converted to

Term Loans

Total

(Dollars in thousands)

Total

Pass

$

645,342

$

1,390,221

$

727,872

$

382,055

$

213,854

$

228,042

$

1,834,228

$

166,164

$

5,587,778

Special mention

22,314

11,656

32,995

3,043

18,562

9,733

34,185

6,818

139,306

Substandard - accrual

11,576

429

270

3,718

1,072

1,231

20,742

17,610

56,648

Substandard - non-

accrual

-

-

2,440

230

-

-

8,511

1,218

12,399

Doubtful

-

-

-

-

-

-

468

-

468

Total

$

679,232

$

1,402,306

$

763,577

$

389,046

$

233,488

$

239,006

$

1,898,134

$

191,810

$

5,796,599

As of December 31, 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

$

465,963

$

281,166

$

55,934

$

50,445

$

48,595

$

20,648

$

890,109

$

19,089

$

1,831,949

Special mention

2,531

23,055

14,573

2,951

4,947

86

49,861

41

98,045

Substandard - accrual

290

677

1,647

1,330

740

299

10,805

21,166

36,954

Substandard - non-

accrual

-

104

-

6

1,383

-

6,479

-

7,972

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

12

-

-

12

Total

$

468,784

$

305,002

$

72,154

$

54,732

$

55,665

$

21,045

$

957,254

$

40,296

$

1,974,932

Energy

Pass

$

7,585

$

306

$

228

$

-

$

-

$

-

$

162,834

$

171

$

171,124

Special mention

-

-

-

-

-

-

-

-

-

Substandard - accrual

-

-

-

-

-

-

1,476

-

1,476

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

618

-

618

Loss

-

-

-

-

-

-

-

-

-

Total

$

7,585

$

306

$

228

$

-

$

-

$

-

$

164,928

$

171

$

173,218

Commercial real estate

- owner-occupied

Pass

$

79,695

$

127,489

$

56,607

$

49,620

$

28,143

$

20,299

$

28,814

$

14,024

$

404,691

Special mention

17,292

6,603

452

1,330

98

2,486

-

2,469

30,730

Substandard - accrual

-

-

403

-

-

1,295

-

-

1,698

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total

$

96,987

$

134,092

$

57,462

$

50,950

$

28,241

$

24,080

$

28,814

$

16,493

$

437,119

As of December 31, 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

- non-owner-occupied

Pass

$

827,420

$

442,176

$

200,090

$

101,827

$

49,834

$

73,940

$

458,297

$

111,322

$

2,264,906

Special mention

5,931

7,727

114

-

6,460

1,853

2,429

9,852

34,366

Substandard - accrual

10,545

310

607

82

60

253

-

992

12,849

Substandard - non-

accrual

-

2,479

-

-

-

-

-

-

2,479

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total

$

843,896

$

452,692

$

200,811

$

101,909

$

56,354

$

76,046

$

460,726

$

122,166

$

2,314,600

Residential real estate

Pass

$

77,416

$

84,158

$

121,078

$

45,265

$

37,395

$

34,852

$

31,892

$

-

$

432,056

Special mention

253

3,272

187

226

-

-

-

-

3,938

Substandard - accrual

34

-

3,148

-

-

-

-

-

3,182

Substandard - non-

accrual

-

-

-

-

-

-

-

191

191

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total

$

77,703

$

87,430

$

124,413

$

45,491

$

37,395

$

34,852

$

31,892

$

191

$

439,367

Consumer

Pass

$

7,917

$

1,347

$

2,611

$

265

$

129

$

6

$

21,173

$

-

$

33,448

Special mention

-

-

-

-

8

-

-

-

8

Substandard - accrual

-

-

32

-

5

-

-

-

37

Substandard - non-

accrual

-

-

-

-

-

-

-

-

-

Doubtful

-

-

-

-

-

-

-

-

-

Loss

-

-

-

-

-

-

-

-

-

Total

$

7,917

$

1,347

$

2,643

$

265

$

142

$

6

$

21,173

$

-

$

33,493

As of December 31, 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)

Total

Pass

$

1,465,996

$

936,642

$

436,548

$

247,422

$

164,096

$

149,745

$

1,593,119

$

144,606

$

5,138,174

Special mention

26,007

40,657

15,326

4,507

11,513

4,425

52,290

12,362

167,087

Substandard - accrual

10,869

987

5,837

1,412

805

1,847

12,281

22,158

56,196

Substandard - non-

accrual

-

2,583

-

6

1,383

-

6,479

191

10,642

Doubtful

-

-

-

-

-

-

618

-

618

Loss

-

-

-

-

-

12

-

-

12

Total

$

1,502,872

$

980,869

$

457,711

$

253,347

$

177,797

$

156,029

$

1,664,787

$

179,317

$

5,372,729

Loans, Loan Aging Analysis

As of June 30, 2023

Amortized Cost Basis by Origination Year and Past Due Status

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

loans

Revolving

loans

converted to

term loans

Total

(Dollars in thousands)

Commercial and industrial

30-59 days

$

-

$

-

$

2

$

-

$

-

$

-

$

2,946

$

152

$

3,100

60-89 days

-

31

80

-

-

-

1,536

843

2,490

Greater than 90 days

-

7

-

205

-

-

7,293

-

7,505

Total past due

-

38

82

205

-

-

11,775

995

13,095

Current

296,217

312,681

223,203

62,538

45,880

44,533

998,027

61,738

2,044,817

Total

$

296,217

$

312,719

$

223,285

$

62,743

$

45,880

$

44,533

$

1,009,802

$

62,733

$

2,057,912

Greater than 90 days

and accruing

$

-

$

7

$

-

$

148

$

-

$

-

$

242

$

-

$

397

Energy

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

468

-

468

Total past due

-

-

-

-

-

-

468

-

468

Current

-

7,278

105

192

-

-

224,677

143

232,395

Total

$

-

$

7,278

$

105

$

192

$

-

$

-

$

225,145

$

143

$

232,863

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

As of June 30, 2023

Amortized Cost Basis by Origination Year and Past Due Status

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

loans

Revolving

loans

converted to

term loans

Total

(Dollars in thousands)

Commercial real estate

- owner-occupied

30-59 days

$

-

$

-

$

203

$

-

$

-

$

-

$

-

$

-

$

203

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

203

-

-

-

-

-

203

Current

53,536

83,762

139,981

59,992

51,279

42,435

72,630

39,009

542,624

Total

$

53,536

$

83,762

$

140,184

$

59,992

$

51,279

$

42,435

$

72,630

$

39,009

$

542,827

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Commercial real estate - non-owner-occupied

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

6,029

-

-

-

-

-

6,029

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

6,029

-

-

-

-

-

6,029

Current

302,153

915,464

302,895

147,431

95,898

84,853

535,819

89,740

2,474,253

Total

$

302,153

$

915,464

$

308,924

$

147,431

$

95,898

$

84,853

$

535,819

$

89,740

$

2,480,282

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Residential real estate

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

176

$

-

$

176

60-89 days

-

-

1,320

-

-

-

-

-

1,320

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

1,320

-

-

-

176

-

1,496

Current

19,319

76,723

89,138

118,546

40,186

67,055

26,786

185

437,938

Total

$

19,319

$

76,723

$

90,458

$

118,546

$

40,186

$

67,055

$

26,962

$

185

$

439,434

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

As of June 30, 2023

Amortized Cost Basis by Origination Year and Past Due Status

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

loans

Revolving

loans

converted to

term loans

Total

(Dollars in thousands)

Consumer

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

1

14

-

-

-

-

15

Greater than 90 days

-

36

-

-

-

-

-

-

36

Total past due

-

36

1

14

-

-

-

-

51

Current

8,007

6,324

620

128

245

130

27,776

-

43,230

Total

$

8,007

$

6,360

$

621

$

142

$

245

$

130

$

27,776

$

-

$

43,281

Greater than 90 days

and accruing

$

-

$

36

$

-

$

-

$

-

$

-

$

-

$

-

$

36

Total

30-59 days

$

-

$

-

$

205

$

-

$

-

$

-

$

3,122

$

152

$

3,479

60-89 days

-

31

7,430

14

-

-

1,536

843

9,854

Greater than 90 days

-

43

-

205

-

-

7,761

-

8,009

Total past due

-

74

7,635

219

-

-

12,419

995

21,342

Current

679,232

1,402,232

755,942

388,827

233,488

239,006

1,885,715

190,815

5,775,257

Total

$

679,232

$

1,402,306

$

763,577

$

389,046

$

233,488

$

239,006

$

1,898,134

$

191,810

$

5,796,599

Greater than 90 days

and accruing

$

-

$

43

$

-

$

148

$

-

$

-

$

242

$

-

$

433

As of December 31, 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

$

20

$

4,784

$

-

$

-

$

-

$

1,049

$

2,814

$

-

$

8,667

60-89 days

-

55

-

-

-

-

980

430

1,465

Greater than 90 days

-

143

7

6

1,383

12

7,063

-

8,614

Total past due

20

4,982

7

6

1,383

1,061

10,857

430

18,746

Current

468,764

300,020

72,147

54,726

54,282

19,984

946,397

39,866

1,956,186

Total

$

468,784

$

305,002

$

72,154

$

54,732

$

55,665

$

21,045

$

957,254

$

40,296

$

1,974,932

Greater than 90 days

and accruing

$

-

$

39

$

7

$

-

$

-

$

-

$

584

$

-

$

630

Energy

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

618

-

618

Total past due

-

-

-

-

-

-

618

-

618

Current

7,585

306

228

-

-

-

164,310

171

172,600

Total

$

7,585

$

306

$

228

$

-

$

-

$

-

$

164,928

$

171

$

173,218

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Commercial real estate

- owner-occupied

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

-

-

-

-

-

-

-

Current

96,987

134,092

57,462

50,950

28,241

24,080

28,814

16,493

437,119

Total

$

96,987

$

134,092

$

57,462

$

50,950

$

28,241

$

24,080

$

28,814

$

16,493

$

437,119

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

As of December 31, 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

- non-owner-occupied

30-59 days

$

4,293

$

-

$

-

$

1,180

$

-

$

-

$

-

$

-

$

5,473

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

4,293

-

-

1,180

-

-

-

-

5,473

Current

839,603

452,692

200,811

100,729

56,354

76,046

460,726

122,166

2,309,127

Total

$

843,896

$

452,692

$

200,811

$

101,909

$

56,354

$

76,046

$

460,726

$

122,166

$

2,314,600

Greater than 90 days

and accruing

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Residential real estate

30-59 days

$

-

$

3,867

$

-

$

10

$

-

$

-

$

30

$

-

$

3,907

60-89 days

-

-

-

-

-

-

-

-

-

Greater than 90 days

-

120

-

-

-

-

-

-

120

Total past due

-

3,987

-

10

-

-

30

-

4,027

Current

77,703

83,443

124,413

45,481

37,395

34,852

31,862

191

435,340

Total

$

77,703

$

87,430

$

124,413

$

45,491

$

37,395

$

34,852

$

31,892

$

191

$

439,367

Greater than 90 days

and accruing

$

-

$

120

$

-

$

-

$

-

$

-

$

-

$

-

$

120

Consumer

30-59 days

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

60-89 days

-

-

2

-

5

-

-

-

7

Greater than 90 days

-

-

-

-

-

-

-

-

-

Total past due

-

-

2

-

5

-

-

-

7

Current

7,917

1,347

2,641

265

137

6

21,173

-

33,486

Total

$

7,917

$

1,347

$

2,643

$

265

$

142

$

6

$

21,173

$

-

$

33,493

As of December 31, 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)

Total

30-59 days

$

4,313

$

8,651

$

-

$

1,190

$

-

$

1,049

$

2,844

$

-

$

18,047

60-89 days

-

55

2

-

5

-

980

430

1,472

Greater than 90 days

-

263

7

6

1,383

12

7,681

-

9,352

Total past due

4,313

8,969

9

1,196

1,388

1,061

11,505

430

28,871

Current

1,498,559

971,900

457,702

252,151

176,409

154,968

1,653,282

178,887

5,343,858

Total

$

1,502,872

$

980,869

$

457,711

$

253,347

$

177,797

$

156,029

$

1,664,787

$

179,317

$

5,372,729

Greater than 90 days

and accruing

$

-

$

159

$

7

$

-

$

-

$

-

$

584

$

-

$

750

Loans, Nonaccrual

As of June 30, 2023

Amortized Cost Basis by Origination Year and On Non-accrual

Amortized Cost Basis

2023

2022

2021

2020

2019

2018 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

$

-

$

-

$

-

$

57

$

-

$

-

$

8,503

$

1,033

$

9,593

$

6,991

Energy

-

-

-

-

-

-

468

-

468

468

Commercial real estate -

owner-occupied

-

-

-

-

-

-

-

-

-

-

Commercial real estate -

non-owner-occupied

-

-

2,448

173

-

-

-

-

2,621

2,621

Residential real estate

-

-

-

-

-

-

-

185

185

185

Consumer

-

-

-

-

-

-

-

-

-

-

Total

$

-

$

-

$

2,448

$

230

$

-

$

-

$

8,971

$

1,218

$

12,867

$

10,265

As of December 31, 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

$

12

$

6,479

$

-

$

7,984

$

7,984

Energy

-

-

-

-

-

-

618

-

618

618

Commercial real estate -

owner-occupied

-

-

-

-

-

-

-

-

-

-

Commercial real estate -

non-owner-occupied

-

2,479

-

-

-

-

-

-

2,479

2,479

Residential real estate

-

-

-

-

-

-

-

191

191

191

Consumer

-

-

-

-

-

-

-

-

-

-

Total

$

-

$

2,583

$

-

$

6

$

1,383

$

12

$

7,097

$

191

$

11,272

$

11,272

Loans, Allowance for Credit Losses

For the Three Months Ended June 30, 2023

Commercial

and Industrial

Energy

Commercial

Real Estate -

Owner-

occupied

Commercial

Real Estate -

Non-owner-

occupied

Residential

Real Estate

Consumer

Total

(Dollars in thousands)

Allowance for Credit Losses:

Beginning balance

$

27,660

$

4,679

$

5,610

$

23,807

$

3,265

$

109

$

65,130

Charge-offs

(738)

-

-

-

-

(5)

(743)

Recoveries

3

137

-

-

-

-

140

Provision

2,004

98

751

174

3

10

3,040

Ending balance

$

28,929

$

4,914

$

6,361

$

23,981

$

3,268

$

114

$

67,567

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

Beginning balance

$

461

$

541

$

226

$

6,819

$

59

$

7

$

8,113

Provision (release)

(12)

(45)

(21)

(323)

8

(7)

(400)

Ending balance

$

449

$

496

$

205

$

6,496

$

67

$

-

$

7,713

For the Six Months Ended June 30, 2023

Commercial

and Industrial

Energy

Commercial

Real Estate -

Owner-

occupied

Commercial

Real Estate -

Non-owner-

occupied

Residential

Real Estate

Consumer

Total

(Dollars in thousands)

Allowance for Credit Losses:

Beginning balance

$

26,803

$

4,396

$

5,214

$

21,880

$

3,333

$

149

$

61,775

Charge-offs

(2,380)

-

-

-

-

(5)

(2,385)

Recoveries

4

137

-

-

-

-

141

Provision (release)

4,502

381

1,147

2,101

(65)

(30)

8,036

Ending balance

$

28,929

$

4,914

$

6,361

$

23,981

$

3,268

$

114

$

67,567

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

Beginning balance

$

319

$

787

$

221

$

7,323

$

35

$

3

$

8,688

Provision (release)

130

(291)

(16)

(827)

32

(3)

(975)

Ending balance

$

449

$

496

$

205

$

6,496

$

67

$

-

$

7,713

Net Charge-offs By Year of Origination

For the Quarter Ended June 30, 2023

Gross Charge-offs by Origination Year

Gross Charge-offs

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

loans

Revolving

loans

converted

to term

loans

Gross

Charge-

offs

(Dollars in thousands)

Commercial and industrial

$

6

$

-

$

2

$

-

$

-

$

11

$

569

$

150

$

738

Energy

-

-

-

-

-

-

-

-

-

Commercial real estate - owner-occupied

-

-

-

-

-

-

-

-

-

Commercial real estate - non-owner-occupied

-

-

-

-

-

-

-

-

-

Residential real estate

-

-

-

-

-

-

-

-

-

Consumer

-

-

-

-

-

5

-

-

5

Total

$

6

$

-

$

2

$

-

$

-

$

16

$

569

$

150

$

743

For the Six Months Ended June 30, 2023

Gross Charge-offs by Origination Year

Gross Charge-offs

2023

2022

2021

2020

2019

2018 and

Prior

Revolving

loans

Revolving

loans

converted

to term

loans

Gross

Charge-

offs

(Dollars in thousands)

Commercial and industrial

$

6

$

-

$

72

$

-

$

-

$

1,358

$

569

$

375

$

2,380

Energy

-

-

-

-

-

-

-

-

-

Commercial real estate - owner-occupied

-

-

-

-

-

-

-

-

-

Commercial real estate - non-owner-occupied

-

-

-

-

-

-

-

-

-

Residential real estate

-

-

-

-

-

-

-

-

-

Consumer

-

-

-

-

-

5

-

-

5

Total

$

6

$

-

$

72

$

-

$

-

$

1,363

$

569

$

375

$

2,385

Loans, Collateral Dependent Loans

As of June 30, 2023

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

$

7,984

$

883

$

6,065

Energy

Oil and natural gas properties

468

-

468

Commercial real estate - owner-occupied

Commercial real estate properties

-

-

-

Commercial real estate - non-owner-

occupied

Commercial real estate properties

-

-

-

Residential real estate

Residential real estate properties

-

-

-

Consumer

Vehicles & other personal assets

-

-

-

$

8,452

$

883

$

6,533

As of December 31, 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

$

7,981

$

-

$

7,981

Energy

Oil and natural gas properties

618

-

618

Commercial real estate - owner-occupied

Commercial real estate properties

-

-

-

Commercial real estate - non-owner-

occupied

Commercial real estate properties

92

-

92

Residential real estate

Residential real estate properties

-

-

-

Consumer

Vehicles & other personal assets

39

22

-

$

8,728

$

22

$

8,689

Loan Modifications

June 30, 2023

Term Extension

Amortized Cost Basis

% of Loan Class

(Dollars in thousands)

Commercial and industrial

$

4,607

0.2

 % 

Commercial real estate - owner-occupied

65

0.0

Total Loans

$

4,672

June 30, 2023

Current

(Dollars in thousands)

Commercial and industrial

$

4,607

Commercial real estate - owner-occupied

65

Total Loans

$

4,672

June 30, 2023

Financial Effect

Term Extension

Commercial and industrial

Added a weighted average

1.2

 years to the life of loan, which reduced

monthly payment amounts

Commercial real estate - owner-occupied

Added a weighted average

0.6

 years to the life of loan, which reduced

monthly payment amounts