Loans (Tables)

6 Months Ended

Jun. 30, 2018

Loans were as follows:



	June 30, 2018		Percentage of Total		December 31, 2017		Percentage of Total
Commercial and industrial	$	5,043,272	36.8	%	$	4,792,388	36.4	%
Energy:
Production	1,211,261		8.8		1,182,326		9.0
Service	163,013		1.2		171,795		1.3
Other	153,754		1.1		144,972		1.1
Total energy	1,528,028		11.1		1,499,093		11.4
Commercial real estate:
Commercial mortgages	4,097,255		29.9		3,887,742		29.6
Construction	1,106,999		8.1		1,066,696		8.1
Land	305,585		2.2		331,986		2.5
Total commercial real estate	5,509,839		40.2		5,286,424		40.2
Consumer real estate:
Home equity loans	352,243		2.6		355,342		2.7
Home equity lines of credit	321,795		2.3		291,950		2.2
Other	400,661		3.0		376,002		2.9
Total consumer real estate	1,074,699		7.9		1,023,294		7.8
Total real estate	6,584,538		48.1		6,309,718		48.0
Consumer and other	555,924		4.0		544,466		4.2
Total loans	$	13,711,762	100.0	%	$	13,145,665	100.0	%

Non-Accrual Loans, Segregated by Class of Loans

Non-accrual loans, segregated by class of loans, were as follows:



	June 30, 2018		December 31, 2017
Commercial and industrial	$	17,306	$	46,186
Energy	79,963		94,302
Commercial real estate:
Buildings, land and other	19,415		7,589
Construction	—		—
Consumer real estate	872		2,109
Consumer and other	1,625		128
Total	$	119,181	$	150,314

Age Analysis of Past Due Loans, Segregated by Class of Loans

An age analysis of past due loans (including both accruing and non-accruing loans), segregated by class of loans, as of June 30, 2018 was as follows:



	Loans 30-89 Days Past Due		Loans 90 or More Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or More Days Past Due
Commercial and industrial	$	19,560	$	14,656	$	34,216	$	5,009,056	$	5,043,272	$	5,842
Energy	3,775		19,914		23,689		1,504,339		1,528,028		5,878
Commercial real estate:
Buildings, land and other	14,208		23,300		37,508		4,365,332		4,402,840		9,055
Construction	615		—		615		1,106,384		1,106,999		—
Consumer real estate	6,399		1,959		8,358		1,066,341		1,074,699		1,617
Consumer and other	3,710		608		4,318		551,606		555,924		608
Total	$	48,267	$	60,437	$	108,704	$	13,603,058	$	13,711,762	$	23,000

Impaired Loans

Impaired loans are set forth in the following table. No interest income was recognized on impaired loans subsequent to their classification as impaired.



	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance
June 30, 2018
Commercial and industrial	$	23,510	$	3,710	$	11,671	$	15,381	$	7,667
Energy	90,744		19,461		60,228		79,689		14,371
Commercial real estate:
Buildings, land and other	18,382		2,512		15,597		18,109		999
Construction	—		—		—		—		—
Consumer real estate	293		293		—		293		—
Consumer and other	1,625		—		1,625		1,625		1,625
Total	$	134,554	$	25,976	$	89,121	$	115,097	$	24,662
December 31, 2017
Commercial and industrial	$	60,781	$	28,038	$	15,722	$	43,760	$	7,553
Energy	99,606		33,080		61,162		94,242		13,267
Commercial real estate:
Buildings, land and other	10,795		6,394		—		6,394		—
Construction	—		—		—		—		—
Consumer real estate	1,214		1,214		—		1,214		—
Consumer and other	—		—		—		—		—
Total	$	172,396	$	68,726	$	76,884	$	145,610	$	20,820

Average Recorded Investment In Impaired Loans

The average recorded investment in impaired loans was as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Commercial and industrial	$	15,307	$	21,347	$	24,791	$	23,867
Energy	92,380		67,008		93,001		63,860
Commercial real estate:
Buildings, land and other	13,867		5,966		11,376		6,266
Construction	—		—		—		—
Consumer real estate	860		1,376		978		1,135
Consumer and other	813		12		542		18
Total	$	123,227	$	95,709	$	130,688	$	95,146

Troubled Debt Restructurings

Troubled debt restructurings during the six months ended June 30, 2018 and June 30, 2017 are set forth in the following table.



	Six Months Ended June 30, 2018				Six Months Ended June 30, 2017
	Balance at Restructure		Balance at Period-End		Balance at Restructure		Balance at Period-End
Commercial and industrial	$	2,203	$	843	$	784	$	643
Energy	13,708		—		12,959		12,458
	$	15,911	$	843	$	13,743	$	13,101

Restructured Loans Past Due in Excess of 90 Days on Financing Receivables

Additional information related to restructured loans was as follows:



	June 30, 2018		June 30, 2017
Restructured loans past due in excess of 90 days at period-end:
Number of loans	—		—
Dollar amount of loans	$	—	$	—
Restructured loans on non-accrual status at period end	843		11,405
Charge-offs of restructured loans:
Recognized in connection with restructuring	—		—
Recognized on previously restructured loans	1,650		9,951
Proceeds from sale of restructured loans	13,350		—

Weighted Average Risk Grades for All Commercial Loans by Class

The following tables present weighted-average risk grades for all commercial loans by class.



	June 30, 2018			December 31, 2017
	Weighted Average Risk Grade	Loans		Weighted Average Risk Grade	Loans
Commercial and industrial:
Risk grades 1-8	6.10	$	4,737,862	6.06	$	4,378,839
Risk grade 9	9.00	110,377		9.00	170,285
Risk grade 10	10.00	117,623		10.00	99,260
Risk grade 11	11.00	60,104		11.00	97,818
Risk grade 12	12.00	9,639		12.00	38,633
Risk grade 13	13.00	7,667		13.00	7,553
Total	6.33	$	5,043,272	6.41	$	4,792,388
Energy
Risk grades 1-8	5.98	$	1,288,490	6.01	$	1,199,207
Risk grade 9	9.00	44,181		9.00	50,427
Risk grade 10	10.00	48,115		10.00	64,282
Risk grade 11	11.00	67,279		11.00	90,875
Risk grade 12	12.00	65,591		12.00	81,035
Risk grade 13	13.00	14,372		13.00	13,267
Total	6.74	$	1,528,028	6.97	$	1,499,093
Commercial real estate:
Buildings, land and other
Risk grades 1-8	6.77	$	4,071,883	6.75	$	3,868,659
Risk grade 9	9.00	130,689		9.00	151,487
Risk grade 10	10.00	101,505		10.00	129,391
Risk grade 11	11.00	79,348		11.00	62,602
Risk grade 12	12.00	18,416		12.00	7,589
Risk grade 13	13.00	999		13.00	—
Total	7.01	$	4,402,840	7.00	$	4,219,728
Construction
Risk grades 1-8	7.13	$	1,077,422	7.11	$	1,019,635
Risk grade 9	9.00	10,873		9.00	18,042
Risk grade 10	10.00	17,237		10.00	23,393
Risk grade 11	11.00	1,467		11.00	5,626
Risk grade 12	12.00	—		12.00	—
Risk grade 13	13.00	—		13.00	—
Total	7.20	$	1,106,999	7.23	$	1,066,696

Net (Charge-Offs)/Recoveries, Segregated by Class of Loans

Net (charge-offs)/recoveries, segregated by class of loans, were as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Commercial and industrial	$	(3,548	)	$	(4,861	)	$	(11,223	)	$	(7,590	)
Energy	(2,076		)	(6,236		)	(4,925		)	(10,461		)
Commercial real estate:
Buildings, land and other	(402		)	460			(321		)	502
Construction	6			3			8			6
Consumer real estate	(164		)	111			(690		)	207
Consumer and other	(1,726		)	(1,401		)	(3,183		)	(2,529		)
Total	$	(7,910	)	$	(11,924	)	$	(20,334	)	$	(19,865	)

Unallocated Portion of Allowance for Loan Losses

The following table presents details of the allowance for loan losses allocated to each portfolio segment as of June 30, 2018 and December 31, 2017 and detailed on the basis of the impairment evaluation methodology we used:



	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other			Total
June 30, 2018
Historical valuation allowances	$	25,233	$	12,117	$	20,072	$	2,555	$	6,779		$	66,756
Specific valuation allowances	7,667		14,371		999		—		1,625			24,662
General valuation allowances	9,671		6,807		4,036		1,474		(114		)	21,874
Macroeconomic valuation allowances	15,142		4,018		13,811		2,307		1,656			36,934
Total	$	57,713	$	37,313	$	38,918	$	6,336	$	9,946		$	150,226
Allocated to loans:
Individually evaluated	$	7,667	$	14,371	$	999	$	—	$	1,625		$	24,662
Collectively evaluated	50,046		22,942		37,919		6,336		8,321			125,564
Total	$	57,713	$	37,313	$	38,918	$	6,336	$	9,946		$	150,226
December 31, 2017
Historical valuation allowances	$	26,401	$	22,073	$	18,931	$	2,473	$	5,603		$	75,481
Specific valuation allowances	7,553		13,267		—		—		—			20,820
General valuation allowances	9,112		7,964		4,165		2,133		(91		)	23,283
Macroeconomic valuation allowances	16,548		8,224		7,852		1,051		2,105			35,780
Total	$	59,614	$	51,528	$	30,948	$	5,657	$	7,617		$	155,364
Allocated to loans:
Individually evaluated	$	7,553	$	13,267	$	—	$	—	$	—		$	20,820
Collectively evaluated	52,061		38,261		30,948		5,657		7,617			134,544
Total	$	59,614	$	51,528	$	30,948	$	5,657	$	7,617		$	155,364

Investment in Loans Related to Allowance for Loan Losses by Portfolio Segment Disaggregated Based on Impairment Methodology

Our recorded investment in loans as of June 30, 2018 and December 31, 2017 related to each balance in the allowance for loan losses by portfolio segment and detailed on the basis of the impairment methodology we used was as follows:



	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
June 30, 2018
Individually evaluated	$	15,381	$	79,689	$	18,109	$	293	$	1,625	$	115,097
Collectively evaluated	5,027,891		1,448,339		5,491,730		1,074,406		554,299		13,596,665
Total	$	5,043,272	$	1,528,028	$	5,509,839	$	1,074,699	$	555,924	$	13,711,762
December 31, 2017
Individually evaluated	$	43,760	$	94,242	$	6,394	$	1,214	$	—	$	145,610
Collectively evaluated	4,748,628		1,404,851		5,280,030		1,022,080		544,466		13,000,055
Total	$	4,792,388	$	1,499,093	$	5,286,424	$	1,023,294	$	544,466	$	13,145,665

Activity in Allowance for Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2018 and 2017. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.



	Commercial and Industrial			Energy			Commercial Real Estate			Consumer Real Estate			Consumer and Other			Total
Three months ended:
June 30, 2018
Beginning balance	$	57,733		$	39,039		$	38,474		$	6,349		$	8,290		$	149,885
Provision for loan losses	3,528			350			840			151			3,382			8,251
Charge-offs	(4,153		)	(2,689		)	(614		)	(482		)	(3,994		)	(11,932		)
Recoveries	605			613			218			318			2,268			4,022
Net charge-offs	(3,548		)	(2,076		)	(396		)	(164		)	(1,726		)	(7,910		)
Ending balance	$	57,713		$	37,313		$	38,918		$	6,336		$	9,946		$	150,226
June 30, 2017
Beginning balance	$	45,583		$	61,793		$	34,009		$	4,823		$	6,848		$	153,056
Provision for loan losses	8,184			(1,280		)	(1,470		)	601			2,391			8,426
Charge-offs	(5,579		)	(6,317		)	(14		)	(2		)	(3,623		)	(15,535		)
Recoveries	718			81			477			113			2,222			3,611
Net charge-offs	(4,861		)	(6,236		)	463			111			(1,401		)	(11,924		)
Ending balance	$	48,906		$	54,277		$	33,002		$	5,535		$	7,838		$	149,558

Six months ended:
June 30, 2018
Beginning balance	$	59,614		$	51,528		$	30,948		$	5,657		$	7,617		$	155,364
Provision for loan losses	9,322			(9,290		)	8,283			1,369			5,512			15,196
Charge-offs	(13,405		)	(5,539		)	(619		)	(1,201		)	(7,966		)	(28,730		)
Recoveries	2,182			614			306			511			4,783			8,396
Net charge-offs	(11,223		)	(4,925		)	(313		)	(690		)	(3,183		)	(20,334		)
Ending balance	$	57,713		$	37,313		$	38,918		$	6,336		$	9,946		$	150,226
June 30, 2017
Beginning balance	$	52,915		$	60,653		$	30,213		$	4,238		$	5,026		$	153,045
Provision for loan losses	3,581			4,085			2,281			1,090			5,341			16,378
Charge-offs	(9,106		)	(10,595		)	(14		)	(13		)	(7,171		)	(26,899		)
Recoveries	1,516			134			522			220			4,642			7,034
Net charge-offs	(7,590		)	(10,461		)	508			207			(2,529		)	(19,865		)
Ending balance	$	48,906		$	54,277		$	33,002		$	5,535		$	7,838		$	149,558