Loans (Tables)

12 Months Ended

Dec. 31, 2020

Year-end loans, including leases net of unearned discounts, consisted of the following:


	2020		2019
Commercial and industrial	$	4,955,341	$	5,187,466
Energy:
Production	976,473		1,348,900
Service	116,825		192,996
Other	141,900		110,986
Total energy	1,235,198		1,652,882
Paycheck Protection Program	2,433,849		—
Commercial real estate:
Commercial mortgages	5,478,806		4,594,113
Construction	1,223,814		1,312,659
Land	317,847		289,467
Total commercial real estate	7,020,467		6,196,239
Consumer real estate:
Home equity loans	329,390		375,596
Home equity lines of credit	452,854		354,671
Other	548,530		464,146
Total consumer real estate	1,330,774		1,194,413
Total real estate	8,351,241		7,390,652
Consumer and other	505,680		519,332
Total loans	$	17,481,309	$	14,750,332

Activities in Related Party Loans

Activity in related party loans during 2020 is presented in the following table. Other changes were primarily related to changes in related-party status.


Balance outstanding at December 31, 2019	$	298,528
Principal additions	267,951
Principal reductions	(212,157)
Other changes	(1,217)
Balance outstanding at December 31, 2020	$	353,105

Non-Accrual Loans, Segregated by Class of Loans

Year-end non-accrual loans, segregated by class of loans, were as follows:


	December 31, 2020				December 31, 2019
	Total Non-Accrual		Non-Accrual with No Credit Loss Allowance		Total Non-Accrual		Non-Accrual with No Credit Loss Allowance
Commercial and industrial	$	19,849	$	4,479	$	26,038	$	13,266
Energy	23,168		639		65,761		3,281
Paycheck Protection Program	—		—		—		—
Commercial real estate:
Buildings, land and other	15,737		14,116		8,912		6,558
Construction	1,684		1,684		665		665
Consumer real estate	993		993		922		922
Consumer and other	18		—		5		—
Total	$	61,449	$	21,911	$	102,303	$	24,692

Financing Receivable, Non-Accrual Loans, Segregated by Class of Loan and Year of Origination

The following table presents non-accrual loans as of December 31, 2020 by class and year of origination.


	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial	$	9,479	$	3,351	$	1,846	$	1,489	$	105	$	29	$	839	$	2,711	$	19,849
Energy	2,421		6,772		2,144		—		—		359		11,193		279		23,168
Paycheck Protection Program	—		—		—		—		—		—		—		—		—
Commercial real estate:
Buildings, land and other	2,914		5,031		999		2,019		1,933		2,736		105		—		15,737
Construction	1,684		—		—		—		—		—		—		—		1,684
Consumer real estate	—		—		—		211		—		408		259		115		993
Consumer and other	—		—		—		—		—		—		18		—		18
Total	$	16,498	$	15,154	$	4,989	$	3,719	$	2,038	$	3,532	$	12,414	$	3,105	$	61,449

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 December 31, 2020 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	$	45,416	$	9,616	$	55,032	$	4,900,309	$	4,955,341	$	5,615
Energy	14,833		11,237		26,070		1,209,128		1,235,198		3,696
Paycheck Protection Program	—		—		—		2,433,849		2,433,849		—
Commercial real estate:
Buildings, land and other	22,130		6,304		28,434		5,768,219		5,796,653		1,275
Construction	856		—		856		1,222,958		1,223,814		—
Consumer real estate	8,090		3,047		11,137		1,319,637		1,330,774		2,469
Consumer and other	5,537		1,251		6,788		498,892		505,680		1,233
Total	$	96,862	$	31,455	$	128,317	$	17,352,992	$	17,481,309	$	14,288

Impaired Loans

mpaired loans as of December 31, 2019 and the average recorded investment in impaired loans during 2019 and 2018 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		Average Recorded Investment 2019		Average Recorded Investment 2018
2019
Commercial and industrial	$	30,909	$	11,588	$	12,772	$	24,360	$	7,849	$	14,913	$	18,246
Energy	87,103		2,764		62,480		65,244		20,246		53,563		75,453
Commercial real estate:
Buildings, land and other	9,252		6,255		2,354		8,609		383		13,690		12,799
Construction	697		665		—		665		—		354		—
Consumer real estate	570		570		—		570		—		547		704
Consumer and other	5		—		5		5		5		1,285		925
Total	$	128,536	$	21,842	$	77,611	$	99,453	$	28,483	$	84,352	$	108,127

Troubled Debt Restructurings

Troubled debt restructurings that occurred during 2020, 2019 and 2018 are set forth in the following table.


	2020				2019				2018
	Balance at Restructure		Balance at Year-end		Balance at Restructure		Balance at Year-end		Balance at Restructure		Balance at Year-end
Commercial and industrial	$	3,661	$	192	$	3,845	$	2,161	$	2,203	$	—
Energy	2,432		2,421		—		—		13,708		—
Commercial real estate:
Buildings, land and other	9,310		4,922		9,457		9,393		—		—
Construction	1,017		1,017		—		—		—		—
Consumer real estate	—		—		124		120		—		—
Consumer and other	1,104		—		—		—		—		—
	$	17,524	$	8,552	$	13,426	$	11,674	$	15,911	$	—

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

Additional information related to restructured loans was as follows:


	2020		2019		2018
Restructured loans past due in excess of 90 days at period-end:
Number of loans	1		4		—
Dollar amount of loans	$	2,008	$	3,340	$	—
Restructured loans on non-accrual status at period end	8,552		5,576		—
Charge-offs of restructured loans:
Recognized in connection with restructuring	337		—		—
Recognized on previously restructured loans	3,894		1,500		7,650
Proceeds from sale of restructured loans	—		—		15,750

Weighted Average Risk Grades for All Commercial Loans by Class and Year of Origination

The following tables present weighted-average risk grades for all commercial loans, by class and year of origination/renewal as of December 31, 2020. Paycheck Protection Program (“PPP”) loans are excluded as such loans are fully guaranteed by the Small Business Administration (“SBA”).


	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Risk grades 1-8	$	1,300,844	$	552,885	$	290,088	$	226,232	$	107,063	$	113,458	$	1,852,341	$	63,210	$	4,506,121
Risk grade 9	50,785		37,865		33,961		20,851		12,348		5,510		85,756		9,122		256,198
Risk grade 10	31,333		7,361		11,379		6,749		710		113		65,180		3,152		125,977
Risk grade 11	4,700		7,002		6,551		3,416		1,426		140		15,005		8,956		47,196
Risk grade 12	6,899		2,399		1,195		1,005		105		29		480		2,416		14,528
Risk grade 13	2,580		952		651		484		—		—		359		295		5,321
	$	1,397,141	$	608,464	$	343,825	$	258,737	$	121,652	$	119,250	$	2,019,121	$	87,151	$	4,955,341
W/A risk grade	6.19		6.88		7.22		6.39		6.32		5.84		6.38		7.51		6.45
Energy
Risk grades 1-8	$	403,156	$	18,911	$	9,759	$	8,083	$	1,415	$	4,326	$	494,946	$	27,548	$	968,144
Risk grade 9	105,772		2,272		1,743		—		—		—		18,194		5,566		133,547
Risk grade 10	703		4,049		1,339		—		759		—		37,637		1,940		46,427
Risk grade 11	12,218		16,849		1,325		—		—		661		30,124		2,735		63,912
Risk grade 12	1,101		4,580		654		—		—		359		6,768		279		13,741
Risk grade 13	1,320		2,192		1,490		—		—		—		4,425		—		9,427
	$	524,270	$	48,853	$	16,310	$	8,083	$	2,174	$	5,346	$	592,094	$	38,068	$	1,235,198
W/A risk grade	6.86		9.57		8.68		7.40		7.85		8.06		6.45		8.20		6.85
Commercial real estate:
Buildings, land, other
Risk grades 1-8	$	1,544,558	$	947,102	$	749,879	$	605,152	$	432,941	$	661,301	$	56,600	$	50,340	$	5,047,873
Risk grade 9	45,527		81,224		75,893		45,485		26,745		37,728		10,521		2,104		325,227
Risk grade 10	14,183		36,414		45,014		71,814		25,343		60,225		200		5,261		258,454
Risk grade 11	22,633		16,302		11,916		39,727		8,655		42,904		6,977		248		149,362
Risk grade 12	2,714		5,031		999		2,019		1,683		2,736		42		—		15,224
Risk grade 13	200		—		—		—		250		—		63		—		513
	$	1,629,815	$	1,086,073	$	883,701	$	764,197	$	495,617	$	804,894	$	74,403	$	57,953	$	5,796,653
W/A risk grade	7.13		7.36		7.54		7.55		7.54		7.20		7.54		7.12		7.34
Construction
Risk grades 1-8	$	374,661	$	436,077	$	168,517	$	67	$	1,144	$	1,758	$	127,801	$	—	$	1,110,025
Risk grade 9	37,430		16,567		—		2,848		—		—		14,311		1,131		72,287
Risk grade 10	5,846		—		27,653		—		—		—		5,463		—		38,962
Risk grade 11	856		—		—		—		—		—		—		—		856
Risk grade 12	1,684		—		—		—		—		—		—		—		1,684
Risk grade 13	—		—		—		—		—		—		—		—		—
	$	420,477	$	452,644	$	196,170	$	2,915	$	1,144	$	1,758	$	147,575	$	1,131	$	1,223,814
W/A risk grade	6.82		7.18		8.08		8.95		7.30		6.44		7.29		9.00		7.22
Total commercial real estate	$	2,050,292	$	1,538,717	$	1,079,871	$	767,112	$	496,761	$	806,652	$	221,978	$	59,084	$	7,020,467
W/A risk grade	7.06		7.31		7.64		7.56		7.54		7.20		7.37		7.15		7.32

Weighted Average Risk Grades for All Commercial Loans by Class

The following tables present weighted average risk grades for all commercial loans by class as of December 31, 2019.


	Commercial and Industrial			Energy			Commercial Real Estate - Buildings, Land and Other			Commercial Real Estate - Construction			Total Commercial Real Estate
	W/A Risk Grade	Loans		W/A Risk Grade	Loans		W/A Risk Grade	Loans		W/A Risk Grade	Loans		W/A Risk Grade	Loans
Risk grades 1-8	6.17	$	4,788,857	5.90	$	1,488,301	6.78	$	4,523,271	7.25	$	1,274,098	6.88	$	5,797,369
Risk grade 9	9.00	247,212		9.00	32,163		9.00	163,714		9.00	21,509		9.00	185,223
Risk grade 10	10.00	71,472		10.00	51,898		10.00	103,626		10.00	15,243		10.00	118,869
Risk grade 11	11.00	53,887		11.00	14,760		11.00	84,057		11.00	1,144		11.00	85,201
Risk grade 12	12.00	18,189		12.00	45,514		12.00	8,529		12.00	665		12.00	9,194
Risk grade 13	13.00	7,849		13.00	20,246		13.00	383		13.00	—		13.00	383
Total	6.44	$	5,187,466	6.39	$	1,652,882	7.01	$	4,883,580	7.31	$	1,312,659	7.07	$	6,196,239

Age analysis of Past Due Consumer Loans by Class and Year of Origination

Information about the payment status of consumer loans, segregated by portfolio segment and year of origination, as of December 31, 2020 was as follows:


	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Consumer real estate:
Past due 30-89 days	$	225	$	1,038	$	1,556	$	553	$	628	$	2,907	$	652	$	531	$	8,090
Past due 90 or more days	15		139		109		706		25		1,287		615		151		3,047
Total past due	240		1,177		1,665		1,259		653		4,194		1,267		682		11,137
Current loans	336,441		166,323		94,374		80,625		66,241		124,590		434,939		16,104		1,319,637
Total	$	336,681	$	167,500	$	96,039	$	81,884	$	66,894	$	128,784	$	436,206	$	16,786	$	1,330,774
Consumer and other:
Past due 30-89 days	$	1,750	$	300	$	453	$	52	$	17	$	—	$	2,238	$	727	$	5,537
Past due 90 or more days	71		10		118		—		—		—		1,031		21		1,251
Total past due	1,821		310		571		52		17		—		3,269		748		6,788
Current loans	45,286		27,813		5,397		2,799		1,705		572		386,791		28,529		498,892
Total	$	47,107	$	28,123	$	5,968	$	2,851	$	1,722	$	572	$	390,060	$	29,277	$	505,680

Financing Receivable Revolving Loans Converted to Term

Revolving loans that converted to term during 2020 were as follows:



Commercial and industrial	$	47,562
Energy	33,150
Commercial real estate:
Buildings, land and other	10,505
Construction	1,131
Consumer real estate	2,264
Consumer and other	16,395
Total	$	111,007

Financing Receivable, Allowance for Credit Loss By Loan Class Calculated in Accordance With CECL Methodology

The following table presents details of the allowance for credit losses on loans segregated by loan portfolio segment as of December 31, 2020, calculated in accordance with the CECL methodology described above. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the SBA.


	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
Modeled expected credit losses	$	65,645	$	8,910	$	125,126	$	7,926	$	6,945	$	214,552
Q-Factor and other qualitative adjustments	2,877		21,216		9,253		—		—		33,346
Specific allocations	5,321		9,427		513		—		18		15,279
Total	$	73,843	$	39,553	$	134,892	$	7,926	$	6,963	$	263,177

Allowance for Credit Losses By Loan Class in Accordance With Methodology Used Prior to CECL

The following table presents details of the allowance for credit losses on loans segregated by loan portfolio segment as of December 31, 2019, calculated in accordance with our prior incurred loss methodology described in our 2019 Form 10-K.


	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
Historical valuation allowances	$	29,015	$	7,873	$	21,947	$	2,690	$	7,562	$	69,087
Specific valuation allowances	7,849		20,246		383		—		5		28,483
General valuation allowances	9,840		5,196		4,201		904		(409)		19,732
Macroeconomic valuation allowances	4,889		4,067		4,506		519		884		14,865
Total	$	51,593	$	37,382	$	31,037	$	4,113	$	8,042	$	132,167

Activity in Allowance for Loan Losses by Portfolio Segment

The following table details activity in the allowance for credit losses on loans by portfolio segment for 2020, 2019 and 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the SBA.


	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
2020
Beginning balance	$	51,593	$	37,382	$	31,037	$	4,113	$	8,042	$	132,167
Impacting of adopting ASC 326	21,263		(10,453)		(13,519)		2,392		(2,248)		(2,565)
Credit loss expense	15,156		85,889		124,427		1,906		9,632		237,010
Charge-offs	(18,908)		(76,107)		(7,499)		(2,186)		(17,830)		(122,530)
Recoveries	4,739		2,842		446		1,701		9,367		19,095
Net charge-offs	(14,169)		(73,265)		(7,053)		(485)		(8,463)		(103,435)
Ending balance	$	73,843	$	39,553	$	134,892	$	7,926	$	6,963	$	263,177
2019
Beginning balance	$	48,580	$	29,052	$	38,777	$	6,103	$	9,620	$	132,132
Credit loss expense	13,144		14,388		(6,934)		467		12,694		33,759
Charge-offs	(14,117)		(7,500)		(1,025)		(3,665)		(24,725)		(51,032)
Recoveries	3,986		1,442		219		1,208		10,453		17,308
Net charge-offs	(10,131)		(6,058)		(806)		(2,457)		(14,272)		(33,724)
Ending balance	$	51,593	$	37,382	$	31,037	$	4,113	$	8,042	$	132,167
2018
Beginning balance	$	59,614	$	51,528	$	30,948	$	5,657	$	7,617	$	155,364
Credit loss expense	11,354		(9,355)		8,079		1,984		9,551		21,613
Charge-offs	(26,076)		(13,940)		(619)		(2,143)		(17,197)		(59,975)
Recoveries	3,688		819		369		605		9,649		15,130
Net charge-offs	(22,388)		(13,121)		(250)		(1,538)		(7,548)		(44,845)
Ending balance	$	48,580	$	29,052	$	38,777	$	6,103	$	9,620	$	132,132

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

The following table presents loans that were evaluated for expected credit losses on an individual basis and the related specific allocations, by loan portfolio segment as of December 31, 2020 and December 31, 2019.


	December 31, 2020				December 31, 2019
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
Commercial and industrial	$	21,287	$	5,321	$	24,360	$	7,849
Energy	22,888		9,427		65,244		20,246
Paycheck Protection Program	—		—		—		—
Commercial real estate:
Buildings, land and other	34,057		513		8,609		383
Construction	1,684		—		665		—
Consumer real estate	561		—		570		—
Consumer and other	18		18		5		5
Total	$	80,495	$	15,279	$	99,453	$	28,483