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Loans (Tables)

3 Months Ended

Mar. 31, 2023

Loans were as follows:


	March 31, 2023		December 31, 2022
Commercial and industrial	$	5,668,697	$	5,674,798
Energy:
Production	779,657		696,570
Service	166,605		133,542
Other	120,126		95,617
Total energy	1,066,388		925,729
Paycheck Protection Program	28,497		34,852
Commercial real estate:
Commercial mortgages	6,247,370		6,168,910
Construction	1,482,458		1,477,247
Land	542,468		537,168
Total commercial real estate	8,272,296		8,183,325
Consumer real estate:
Home equity lines of credit	719,054		691,841
Home equity loans	502,083		449,507
Home improvement loans	626,810		577,377
Other	138,912		124,814
Total consumer real estate	1,986,859		1,843,539
Total real estate	10,259,155		10,026,864
Consumer and other	463,283		492,726
Total loans	$	17,486,020	$	17,154,969

Non-Accrual Loans, Segregated by Class of Loans

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


	March 31, 2023				December 31, 2022
	Total Non-Accrual		Non-Accrual with No Credit Loss Allowance		Total Non-Accrual		Non-Accrual with No Credit Loss Allowance
Commercial and industrial	$	10,494	$	4,962	$	18,130	$	8,514
Energy	22,349		14,515		15,224		7,139

Commercial real estate:
Buildings, land and other	4,604		4,110		3,552		1,991
Construction	—		—		—		—
Consumer real estate	963		963		927		927
Consumer and other	—		—		—		—
Total	$	38,410	$	24,550	$	37,833	$	18,571

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

The following table presents non-accrual loans as of March 31, 2023 by class and year of origination.


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial	$	—	$	139	$	1,026	$	815	$	3,121	$	1,247	$	690	$	3,456	$	10,494
Energy	7,812		4,161		—		72		1,371		8		7,219		1,706		22,349

Commercial real estate:
Buildings, land and other	—		2,543		303		—		211		1,547		—		—		4,604
Construction	—		—		—		—		—		—		—		—		—
Consumer real estate	—		—		258		32		—		101		—		572		963
Consumer and other	—		—		—		—		—		—		—		—		—
Total	$	7,812	$	6,843	$	1,587	$	919	$	4,703	$	2,903	$	7,909	$	5,734	$	38,410

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 March 31, 2023 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	$	28,697	$	7,320	$	36,017	$	5,632,680	$	5,668,697	$	1,876
Energy	3,916		7,833		11,749		1,054,639		1,066,388		—
Paycheck Protection Program	484		5,748		6,232		22,265		28,497		5,748
Commercial real estate:
Buildings, land and other	39,054		1,071		40,125		6,749,713		6,789,838		112
Construction	1,647		118		1,765		1,480,693		1,482,458		118
Consumer real estate	14,401		2,317		16,718		1,970,141		1,986,859		2,013
Consumer and other	4,430		98		4,528		458,755		463,283		98
Total	$	92,629	$	24,505	$	117,134	$	17,368,886	$	17,486,020	$	9,965

Financing Receivables, Modified Loans Past Due in Excess of 90 Days or on Non-Accrual Status at Period-End

Information as of or for the three months ended March 31, 2023 and March 31, 2022 related to loans modified (by type of modification) in the preceding twelve months, respectively, whereby the borrower was experiencing financial difficulty at the time of modification is set forth in the following table.


	March 31, 2023				March 31, 2022
	Payment Delay		Combination: Payment Delay and Term Extension		Payment Delay		Combination: Payment Delay and Term Extension
Past due in excess of 90 days or on non-accrual status at period-end:


Commercial real estate:
Buildings, land and other	$	—	$	—	$	306	$	266



	$	—	$	—	$	306	$	266
Charge-offs during the period:

Energy	$	—	$	—	$	371	$	—
Commercial real estate:
Buildings, land and other	—		—		—		352



	$	—	$	—	$	371	$	352

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

The following table presents weighted-average risk grades for all commercial loans, by class and year of origination/renewal, as of March 31, 2023. Paycheck Protection Program (“PPP”) loans are excluded as such loans are fully guaranteed by the Small Business Administration (“SBA”).


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total		W/A Risk Grade
Commercial and industrial
Risk grades 1-8	$	824,021	$	1,023,049	$	584,919	$	438,100	$	206,973	$	284,568	$	2,033,889	$	49,564	$	5,445,083	6.25
Risk grade 9	3,907		12,818		33,802		3,483		3,206		11,015		65,547		5,938		139,716		9.00
Risk grade 10	—		1,253		666		446		4,305		1,081		12,520		852		21,123		10.00
Risk grade 11	182		2,286		4,395		5,661		2,450		2,138		21,199		13,970		52,281		11.00
Risk grade 12	—		139		826		763		2,851		1,247		242		1,215		7,283		12.00
Risk grade 13	—		—		200		52		270		—		448		2,241		3,211		13.00
	$	828,110	$	1,039,545	$	624,808	$	448,505	$	220,055	$	300,049	$	2,133,845	$	73,780	$	5,668,697	6.39
W/A risk grade	6.13		6.67		7.10		5.94		6.46		6.05		6.22		7.91		6.39


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total		W/A Risk Grade
Energy
Risk grades 1-8	$	317,804	$	79,796	$	92,367	$	4,588	$	2,734	$	8,395	$	454,453	$	41,477	$	1,001,614	5.71
Risk grade 9	—		4,797		1,513		85		501		664		30,108		26		37,694		9.00
Risk grade 10	—		—		—		—		388		201		—		720		1,309		10.00
Risk grade 11	—		—		131		142		3,106		43		—		—		3,422		11.00
Risk grade 12	7,812		3,499		—		72		1,371		8		4,248		526		17,536		12.00
Risk grade 13	—		662		—		—		—		—		2,971		1,180		4,813		13.00
	$	325,616	$	88,754	$	94,011	$	4,887	$	8,100	$	9,311	$	491,780	$	43,929	$	1,066,388	5.99
W/A risk grade	6.14		7.13		5.66		7.65		9.73		6.85		5.65		5.98		5.99

Commercial real estate:
Buildings, land, other
Risk grades 1-8	$	437,014	$	1,677,855	$	1,437,065	$	919,210	$	612,177	$	1,094,299	$	149,384	$	104,209	$	6,431,213	6.96
Risk grade 9	386		54,811		27,557		18,737		50,933		30,140		2,162		2,178		186,904		9.00
Risk grade 10	—		23,228		6,122		3,683		8,888		7,257		—		—		49,178		10.00
Risk grade 11	10,574		7,804		10,970		27,000		4,678		53,477		2,993		443		117,939		11.00
Risk grade 12	—		2,417		303		—		211		1,547		—		—		4,478		12.00
Risk grade 13	—		126		—		—		—		—		—		—		126		13.00
	$	447,974	$	1,766,241	$	1,482,017	$	968,630	$	676,887	$	1,186,720	$	154,539	$	106,830	$	6,789,838	7.11
W/A risk grade	7.15		7.07		7.21		7.18		7.04		7.06		7.14		6.46		7.11
Construction
Risk grades 1-8	$	209,154	$	524,611	$	389,715	$	76,004	$	961	$	1,970	$	165,201	$	854	$	1,368,470	7.18
Risk grade 9	4,511		13,834		—		25,522		—		—		15,675		—		59,542		9.00
Risk grade 10	918		—		68		—		—		—		—		—		986		10.00
Risk grade 11	—		15,489		37,971		—		—		—		—		—		53,460		11.00
Risk grade 12	—		—		—		—		—		—		—		—		—		12.00
Risk grade 13	—		—		—		—		—		—		—		—		—		13.00
	$	214,583	$	553,934	$	427,754	$	101,526	$	961	$	1,970	$	180,876	$	854	$	1,482,458	7.39
W/A risk grade	7.50		7.30		7.61		6.49		7.07		6.66		7.52		5.86		7.39
Total commercial real estate	$	662,557	$	2,320,175	$	1,909,771	$	1,070,156	$	677,848	$	1,188,690	$	335,415	$	107,684	$	8,272,296	7.16
W/A risk grade	7.26		7.12		7.30		7.12		7.04		7.06		7.34		6.46		7.16

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, 2022. Refer to our 2022 Form 10-K for details of these loans by year of origination/renewal.


	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	6.24	$	5,435,917	5.44	$	887,182	6.94	$	6,340,028	7.04	$	1,430,012	6.96	$	7,770,040
Risk grade 9	9.00	146,192		9.00	11,112		9.00	189,928		9.00	34,952		9.00	224,880
Risk grade 10	10.00	37,596		10.00	642		10.00	91,020		10.00	931		10.00	91,951
Risk grade 11	11.00	36,963		11.00	11,569		11.00	81,550		11.00	11,352		11.00	92,902
Risk grade 12	12.00	12,521		12.00	10,840		12.00	2,957		12.00	—		12.00	2,957
Risk grade 13	13.00	5,609		13.00	4,384		13.00	595		13.00	—		13.00	595
Total	6.39	$	5,674,798	5.67	$	925,729	7.09	$	6,706,078	7.12	$	1,477,247	7.10	$	8,183,325

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 March 31, 2023 was as follows:


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Consumer real estate:
Past due 30-89 days	$	—	$	89	$	1,324	$	460	$	2,906	$	2,300	$	2,897	$	4,425	$	14,401
Past due 90 or more days	—		95		429		66		—		1,017		710		—		2,317
Total past due	—		184		1,753		526		2,906		3,317		3,607		4,425		16,718
Current loans	108,565		428,252		308,606		189,511		66,032		157,889		703,042		8,244		1,970,141
Total	$	108,565	$	428,436	$	310,359	$	190,037	$	68,938	$	161,206	$	706,649	$	12,669	$	1,986,859
Consumer and other:
Past due 30-89 days	$	1,828	$	375	$	76	$	87	$	34	$	57	$	1,901	$	72	$	4,430
Past due 90 or more days	—		55		—		—		—		—		43		—		98
Total past due	1,828		430		76		87		34		57		1,944		72		4,528
Current loans	30,334		45,568		17,082		5,430		2,378		2,163		332,833		22,967		458,755
Total	$	32,162	$	45,998	$	17,158	$	5,517	$	2,412	$	2,220	$	334,777	$	23,039	$	463,283

Revolving Loans Converted to Term [Table Text Block]

Revolving loans that converted to term during the three months ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31,
		2023		2022
Commercial and industrial		$	15,490	$	5,763
Energy		3,435		—
Commercial real estate:
Buildings, land and other		—		47
Construction		—		3,666
Consumer real estate		707		858
Consumer and other		6,342		4,222
Total		$	25,974	$	14,556

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 March 31, 2023 and December 31, 2022. No allowance for credit losses has been recognized for PPP loans as such loans are fully guaranteed by the SBA.


March 31, 2023	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
Modeled expected credit losses	$	42,449	$	5,034	$	14,739	$	9,380	$	4,413	$	76,015
Q-Factor and other qualitative adjustments	32,805		9,343		100,828		328		4,044		147,348
Specific allocations	3,211		4,814		126		—		—		8,151
Total	$	78,465	$	19,191	$	115,693	$	9,708	$	8,457	$	231,514
December 31, 2022
Modeled expected credit losses	$	61,918	$	8,531	$	27,013	$	7,847	$	4,983	$	110,292
Q-Factor and other qualitative adjustments	36,237		5,148		61,572		157		2,034		105,148
Specific allocations	6,082		4,383		1,716		—		—		12,181
Total	$	104,237	$	18,062	$	90,301	$	8,004	$	7,017	$	227,621

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 the three months ended March 31, 2023 and 2022. 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
Three months ended:
March 31, 2023
Beginning balance	$	104,237	$	18,062	$	90,301	$	8,004	$	7,017	$	227,621
Credit loss expense (benefit)	(20,684)		966		25,361		1,283		5,749		12,675
Charge-offs	(6,180)		—		—		(250)		(6,942)		(13,372)
Recoveries	1,092		163		31		671		2,633		4,590
Net (charge-offs) recoveries	(5,088)		163		31		421		(4,309)		(8,782)
Ending balance	$	78,465	$	19,191	$	115,693	$	9,708	$	8,457	$	231,514
March 31, 2022
Beginning balance	$	72,091	$	17,217	$	144,936	$	6,585	$	7,837	$	248,666
Credit loss expense (benefit)	17,561		(2,044)		(15,609)		(26)		4,582		4,464
Charge-offs	(3,455)		(371)		(702)		(231)		(5,771)		(10,530)
Recoveries	829		620		329		31		2,426		4,235
Net (charge-offs) recoveries	(2,626)		249		(373)		(200)		(3,345)		(6,295)
Ending balance	$	87,026	$	15,422	$	128,954	$	6,359	$	9,074	$	246,835

Financing Receivable, Gross Charge-Offs By Year of Origination

The following table presents year-to-date gross charge-offs by year of origination as of March 31, 2023.


	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial	$	—	$	69	$	167	$	54	$	25	$	—	$	3,134	$	2,731	$	6,180
Energy	—		—		—		—		—		—		—		—		—
Commercial real estate:
Buildings, land and other	—		—		—		—		—		—		—		—		—
Construction	—		—		—		—		—		—		—		—		—
Consumer real estate	—		—		—		—		—		—		250		—		250
Consumer and other	1,974		4,300		35		12		—		12		398		211		6,942
Total	$	1,974	$	4,369	$	202	$	66	$	25	$	12	$	3,782	$	2,942	$	13,372

Investment in Loans Related to 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 March 31, 2023 and December 31, 2022.


	March 31, 2023				December 31, 2022
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
Commercial and industrial	$	8,895	$	3,211	$	18,980	$	6,082
Energy	22,195		4,814		15,058		4,383
Paycheck Protection Program	—		—		—		—
Commercial real estate:
Buildings, land and other	3,779		126		17,711		1,716
Construction	—		—		—		—
Consumer real estate	818		—		827		—
Consumer and other	—		—		—		—
Total	$	35,687	$	8,151	$	52,576	$	12,181