Loans (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Loans

Loans were as follows:

	September 30, 2023		December 31, 2022
Commercial and industrial	$	5,836,877	$	5,674,798
Energy:
Production	743,746		696,570
Service	191,880		133,542
Other	71,233		95,617
Total energy	1,006,859		925,729
Paycheck Protection Program	17,945		34,852
Commercial real estate:
Commercial mortgages	6,660,367		6,168,910
Construction	1,544,666		1,477,247
Land	533,418		537,168
Total commercial real estate	8,738,451		8,183,325
Consumer real estate:
Home equity lines of credit	753,020		691,841
Home equity loans	662,827		449,507
Home improvement loans	733,120		577,377
Other	190,396		124,814
Total consumer real estate	2,339,363		1,843,539
Total real estate	11,077,814		10,026,864
Consumer and other	459,764		492,726
Total loans	$	18,399,259	$	17,154,969

Non-Accrual Loans, Segregated by Class of Loans

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

	September 30, 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	$	27,326	$	3,693	$	18,130	$	8,514
Energy	14,200		9,698		15,224		7,139
Commercial real estate:
Buildings, land, and other	23,112		5,100		3,552		1,991
Construction	—		—		—		—
Consumer real estate	2,537		202		927		927
Consumer and other	—		—		—		—
Total	$	67,175	$	18,693	$	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 September 30, 2023 by class and year of origination.

	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial	$	—	$	359	$	84	$	747	$	2,812	$	1,068	$	21,924	$	332	$	27,326
Energy	8,148		—		—		56		1,348		—		4,502		146		14,200
Commercial real estate:
Buildings, land, and other	18,438		105		296		—		1,463		2,810		—		—		23,112
Construction	—		—		—		—		—		—		—		—		—
Consumer real estate	—		—		—		38		2,335		93		—		71		2,537
Consumer and other	—		—		—		—		—		—		—		—		—
Total	$	26,586	$	464	$	380	$	841	$	7,958	$	3,971	$	26,426	$	549	$	67,175

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 September 30, 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	$	29,967	$	9,682	$	39,649	$	5,797,228	$	5,836,877	$	5,404
Energy	1,684		6,052		7,736		999,123		1,006,859		—
Paycheck Protection Program	2,000		1,954		3,954		13,991		17,945		1,954
Commercial real estate:
Buildings, land, and other	11,364		1,452		12,816		7,180,969		7,193,785		1,056
Construction	8,523		—		8,523		1,536,143		1,544,666		—
Consumer real estate	12,106		6,999		19,105		2,320,258		2,339,363		6,801
Consumer and other	5,041		523		5,564		454,200		459,764		523
Total	$	70,685	$	26,662	$	97,347	$	18,301,912	$	18,399,259	$	15,738

Troubled debt restructurings

The period-end balance of loan modifications, segregated by type of modification, to borrowers experiencing financial difficulty during the nine months ended September 30, 2023 and September 30, 2022 are set forth in the table below, regardless of whether such modifications resulted in a new loan. There were no commitments to lend additional funds to these borrowers at September 30, 2023.

	Payment Delay		Percent of Total Class of Loans		Combination: Payment Delay and Term Extension		Percent of Total Class of Loans		Combination: Interest Rate Reduction and Term Extension		Percent of Total Class of Loans
September 30, 2023
Commercial and industrial	$	—	—	%	$	15,912	0.3	%	$	—	—	%
Commercial real estate:
Buildings, land, and other	—		—		19,785		0.3		2,100		—
	$	—	—		$	35,697	0.2		$	2,100	—
September 30, 2022
Commercial real estate:
Buildings, land, and other	$	1,083	—		$	—	—		$	—	—
	$	1,083	—		$	—	—		$	—	—

Financing Receivables, Modified Loans Past Due in Excess of 90 Days or on Non-Accrual Status, Charge-offs and Proceeds From Sales at Period-End

Information as of or for the nine months ended September 30, 2023 and September 30, 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.

	September 30, 2023					September 30, 2022
		Combination: Payment Delay and Term Extension		Combination: Interest Rate Reduction 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		$	—	$	2,100	$	1,083	$	—
		$	—	$	2,100	$	1,083	$	—
Charge-offs during the period:
Commercial real estate:
Buildings, land, and other		$	—	$	—	$	371	$	352
		$	—	$	—	$	371	$	352
Proceeds from sales:
Commercial real estate:
Buildings, land, and other		$	—	$	—	$	—	$	1,070
		$	—	$	—	$	—	$	1,070

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 September 30, 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	$	1,360,645	$	860,771	$	495,449	$	383,880	$	182,663	$	221,704	$	2,034,460	$	42,098	$	5,581,670	6.29
Risk grade 9	16,491		9,544		5,764		2,837		1,492		9,823		49,123		5,016		100,090		9.00
Risk grade 10	9,184		904		912		312		4,121		619		34,027		1,021		51,100		10.00
Risk grade 11	5,232		5,422		26,626		8,652		2,619		1,389		13,336		13,415		76,691		11.00
Risk grade 12	—		359		84		641		2,663		1,068		16,817		332		21,964		12.00
Risk grade 13	—		—		—		106		149		—		5,107		—		5,362		13.00
	$	1,391,552	$	877,000	$	528,835	$	396,428	$	193,707	$	234,603	$	2,152,870	$	61,882	$	5,836,877	6.46
W/A risk grade	6.24		6.79		7.22		5.85		6.15		6.10		6.43		7.86		6.46

	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total		W/A Risk Grade
Energy
Risk grades 1-8	$	288,729	$	65,086	$	78,601	$	3,959	$	2,057	$	4,164	$	453,243	$	7,871	$	903,710	5.67
Risk grade 9	35,025		7,492		1,184		—		475		—		4,355		18		48,549		9.00
Risk grade 10	—		—		38		—		326		710		34,925		—		35,999		10.00
Risk grade 11	—		—		88		147		3,031		—		—		1,135		4,401		11.00
Risk grade 12	8,148		—		—		56		1,348		—		1,802		146		11,500		12.00
Risk grade 13	—		—		—		—		—		—		2,700		—		2,700		13.00
	$	331,902	$	72,578	$	79,911	$	4,162	$	7,237	$	4,874	$	497,025	$	9,170	$	1,006,859	6.10
W/A risk grade	6.35		6.86		6.05		6.92		9.94		7.19		5.73		7.90		6.10
Commercial real estate:
Buildings, land, other
Risk grades 1-8	$	1,185,417	$	1,718,438	$	1,303,804	$	792,410	$	547,600	$	924,632	$	223,084	$	100,763	$	6,796,148	7.01
Risk grade 9	8,476		22,301		53,874		38,898		16,916		26,598		2,175		541		169,779		9.00
Risk grade 10	217		29,842		7,268		29,238		775		3,219		—		2,599		73,158		10.00
Risk grade 11	4,723		5,985		49,075		10,716		1,697		55,729		2,993		670		131,588		11.00
Risk grade 12	17,288		105		—		—		1,463		2,810		—		—		21,666		12.00
Risk grade 13	1,150		—		296		—		—		—		—		—		1,446		13.00
	$	1,217,271	$	1,776,671	$	1,414,317	$	871,262	$	568,451	$	1,012,988	$	228,252	$	104,573	$	7,193,785	7.17
W/A risk grade	7.21		7.13		7.34		7.22		6.83		7.18		7.29		6.49		7.17
Construction
Risk grades 1-8	$	390,535	$	526,048	$	331,652	$	47,871	$	305	$	1,638	$	138,353	$	—	$	1,436,402	7.25
Risk grade 9	—		16,259		29,569		—		—		—		4,773		—		50,601		9.00
Risk grade 10	23,446		—		5,353		—		—		—		7,311		—		36,110		10.00
Risk grade 11	5,838		13,104		2,611		—		—		—		—		—		21,553		11.00
Risk grade 12	—		—		—		—		—		—		—		—		—		12.00
Risk grade 13	—		—		—		—		—		—		—		—		—		13.00
	$	419,819	$	555,411	$	369,185	$	47,871	$	305	$	1,638	$	150,437	$	—	$	1,544,666	7.43
W/A risk grade	7.59		7.30		7.84		4.39		7.23		6.78		7.42		—		7.43
Total commercial real estate	$	1,637,090	$	2,332,082	$	1,783,502	$	919,133	$	568,756	$	1,014,626	$	378,689	$	104,573	$	8,738,451	7.22
W/A risk grade	7.30		7.17		7.44		7.07		6.83		7.18		7.35		6.49		7.22

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 September 30, 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	$	222	$	1,201	$	1,034	$	535	$	283	$	2,329	$	6,240	$	262	$	12,106
Past due 90 or more days	—		534		650		38		22		1,186		1,509		3,060		6,999
Total past due	222		1,735		1,684		573		305		3,515		7,749		3,322		19,105
Current loans	470,908		439,461		288,751		176,252		61,336		141,551		734,358		7,641		2,320,258
Total	$	471,130	$	441,196	$	290,435	$	176,825	$	61,641	$	145,066	$	742,107	$	10,963	$	2,339,363
Consumer and other:
Past due 30-89 days	$	2,403	$	377	$	193	$	47	$	35	$	49	$	1,818	$	119	$	5,041
Past due 90 or more days	95		62		—		—		—		11		350		5		523
Total past due	2,498		439		193		47		35		—		2,168		124		5,564
Current loans	59,223		32,960		9,543		4,076		1,641		1,645		323,629		21,483		454,200
Total	$	61,721	$	33,399	$	9,736	$	4,123	$	1,676	$	1,645	$	325,797	$	21,607	$	459,764

Revolving Loans Converted to Term [Table Text Block]

Revolving loans that converted to term during the three and nine months ended September 30, 2023 and 2022 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Commercial and industrial	$	13,144	$	2,368	$	18,246	$	22,579
Energy	3,451		1,582		4,050		1,806
Commercial real estate:
Buildings, land and other	—		—		5,635		10,759
Construction	—		—		—		4,414
Consumer real estate	709		700		1,630		2,223
Consumer and other	1,699		1,963		5,151		7,691
Total	$	19,003	$	6,613	$	34,712	$	49,472

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 September 30, 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.

September 30, 2023	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
Modeled expected credit losses	$	45,398	$	7,065	$	16,366	$	14,239	$	5,258	$	88,326
Q-Factor and other qualitative adjustments	23,547		7,301		108,680		498		4,073		144,099
Specific allocations	5,362		2,700		1,446		302		—		9,810
Total	$	74,307	$	17,066	$	126,492	$	15,039	$	9,331	$	242,235
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 and nine months ended September 30, 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:
September 30, 2023
Beginning balance	$	75,166	$	14,929	$	120,926	$	13,035	$	9,563	$	233,619
Credit loss expense (benefit)	(623)		1,784		5,424		2,130		4,893		13,608
Charge-offs	(943)		—		(62)		(170)		(8,189)		(9,364)
Recoveries	707		353		204		44		3,064		4,372
Net (charge-offs) recoveries	(236)		353		142		(126)		(5,125)		(4,992)
Ending balance	$	74,307	$	17,066	$	126,492	$	15,039	$	9,331	$	242,235
September 30, 2022
Beginning balance	$	87,270	$	16,267	$	117,106	$	6,854	$	12,135	$	239,632
Credit loss expense (benefit)	10,844		2,491		(16,522)		940		(216)		(2,463)
Charge-offs	(572)		—		—		(68)		(6,549)		(7,189)
Recoveries	1,288		93		23		309		2,622		4,335
Net (charge-offs) recoveries	716		93		23		241		(3,927)		(2,854)
Ending balance	$	98,830	$	18,851	$	100,607	$	8,035	$	7,992	$	234,315

	Commercial and Industrial		Energy		Commercial Real Estate		Consumer Real Estate		Consumer and Other		Total
Nine months ended:
September 30, 2023
Beginning balance	$	104,237	$	18,062	$	90,301	$	8,004	$	7,017	$	227,621
Credit loss expense (benefit)	(18,903)		(1,683)		35,918		7,235		15,649		38,216
Charge-offs	(14,259)		(518)		(62)		(1,500)		(22,147)		(38,486)
Recoveries	3,232		1,205		335		1,300		8,812		14,884
Net (charge-offs) recoveries	(11,027)		687		273		(200)		(13,335)		(23,602)
Ending balance	$	74,307	$	17,066	$	126,492	$	15,039	$	9,331	$	242,235
September 30, 2022
Beginning balance	$	72,091	$	17,217	$	144,936	$	6,585	$	7,837	$	248,666
Credit loss expense (benefit)	29,347		874		(44,363)		1,497		10,250		(2,395)
Charge-offs	(5,918)		(371)		(702)		(430)		(17,642)		(25,063)
Recoveries	3,310		1,131		736		383		7,547		13,107
Net (charge-offs) recoveries	(2,608)		760		34		(47)		(10,095)		(11,956)
Ending balance	$	98,830	$	18,851	$	100,607	$	8,035	$	7,992	$	234,315

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 September 30, 2023.

	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial	$	124	$	952	$	178	$	54	$	25	$	29	$	7,594	$	5,303	$	14,259
Energy	—		—		—		—		—		—		—		518		518
Commercial real estate:
Buildings, land and other	—		—		—		—		—		62		—		—		62
Construction	—		—		—		—		—		—		—		—		—
Consumer real estate	—		—		280		—		—		130		1,090		—		1,500
Consumer and other	15,543		4,389		60		12		1		23		1,692		427		22,147
Total	$	15,667	$	5,341	$	518	$	66	$	26	$	244	$	10,376	$	6,248	$	38,486

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 September 30, 2023 and December 31, 2022.

	September 30, 2023				December 31, 2022
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
Commercial and industrial	$	26,455	$	5,362	$	18,980	$	6,082
Energy	14,054		2,700		15,058		4,383
Paycheck Protection Program	—		—		—		—
Commercial real estate:
Buildings, land and other	22,318		1,446		17,711		1,716
Construction	—		—		—		—
Consumer real estate	2,335		302		827		—
Consumer and other	—		—		—		—
Total	$	65,162	$	9,810	$	52,576	$	12,181