Loans Held for Investment and Allowance for Credit Losses on Loans (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Summary of Loans Held for Investment by Portfolio Segment

Loans held for investment are summarized by portfolio segment as follows:

	December 31,
	2021		2020
	Amount		Amount
	(Dollars in thousands)
Real estate:
Commercial real estate owner occupied	$	684,739	$	659,762
Commercial real estate non-owner occupied		1,095,324		1,050,739
Construction and development < 60 months		415,466		275,096
Construction residential real estate < 60 months		254,524		230,193
Residential real estate first lien		937,006		930,576
Residential real estate all other		161,018		172,883
Farmland		272,179		254,330
Commercial and agricultural non-real estate		1,256,487		1,193,719
Consumer non-real estate		413,370		376,264
Oil and gas		428,908		428,866
Other loans (2)		250,421		822,078
Total loans (1)	$	6,169,442	$	6,394,506
(1) Excludes accrued interest receivable of $21.0 million at December 31, 2021 and $26.0 million at December 31, 2020, that is recorded in accrued interest receivable and other assets.
(2) Includes PPP loans held for investment of $80.4 million, net of unamortized processing fees of $2.0 million at December 31, 2021 and $652.7 million, net of unamortized processing fees of $14.5 million at December 31, 2020.

Schedule of Portfolio Segments Weighted Average Life, and Measures the Allowance for Credit Losses

The Company has identified the following portfolio segments, which includes the applicable weighted average remaining life, and measures the allowance for credit losses using the vintage loss analysis adjusted for qualitative factors:

Portfolio Segments	Life (in years)
Real estate:
Commercial real estate owner occupied		8
Commercial real estate non-owner occupied		6
Construction and development < 60 months		3
Construction residential real estate < 60 months		1
Residential real estate first lien		13
Residential real estate all other		7
Farmland		12
Commercial and agricultural non-real estate		3
Consumer non-real estate		4
Oil and gas		2
Other loans		10

Summary of Troubled Debt Restructurings and Other Real Estate Owned and Repossessed Assets

The following is a summary of troubled debt restructurings and other real estate owned and repossessed assets:

	December 31,
	2021		2020
	(Dollars in thousands)
Troubled debt restructurings	$	3,665	$	7,784
Other real estate owned and repossessed assets	$	39,553	$	32,480

Summary of Amounts Included in Nonaccrual Loans Segregated by Portfolio Segment

The following table is a summary of amounts included in nonaccrual loans, segregated by portfolio segment.

	December 31, 2021		December 31, 2020
	(Dollars in thousands)
Real estate:
Commercial real estate owner occupied	$	2,900	$	1,404
Commercial real estate non-owner occupied		407		4,719
Construction and development < 60 months		80		95
Construction residential real estate < 60 months		—		—
Residential real estate first lien		2,763		3,615
Residential real estate all other		280		1,362
Farmland		4,224		7,901
Commercial and agricultural non-real estate		7,569		12,782
Consumer non-real estate		148		268
Oil and gas		1,070		—
Other loans		1,451		5,399
Total	$	20,892	$	37,545

Age Analysis of Loans Held for Investments

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents an age analysis of our loans held for investment:

	Age Analysis of Past Due Loans
	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(Dollars in thousands)
December 31, 2021
Real estate:
Commercial real estate owner occupied	$	972	$	223	$	1,363	$	2,558	$	682,181	$	684,739	$	18
Commercial real estate non-owner occupied		7,244		—		—		7,244		1,088,080		1,095,324		—
Construction and development < 60 months		136		—		—		136		415,330		415,466		—
Construction residential real estate < 60 months		2,264		—		—		2,264		252,260		254,524		—
Residential real estate first lien		3,351		567		2,817		6,735		930,271		937,006		1,704
Residential real estate all other		293		30		451		774		160,244		161,018		431
Farmland		253		37		2,077		2,367		269,812		272,179		139
Commercial and agricultural non-real estate		1,807		199		4,574		6,580		1,249,907		1,256,487		124
Consumer non-real estate		1,873		321		272		2,466		410,904		413,370		254
Oil and gas		—		—		—		—		428,908		428,908		—
Other loans		1,773		347		2,646		4,766		245,655		250,421		2,294
Total	$	19,966	$	1,724	$	14,200	$	35,890	$	6,133,552	$	6,169,442	$	4,964
December 31, 2020
Real estate:
Commercial real estate owner occupied	$	1,096	$	108	$	1,164	$	2,368	$	657,394	$	659,762	$	—
Commercial real estate non-owner occupied		323		—		34		357		1,050,382		1,050,739		35
Construction and development < 60 months		511		86		—		597		274,499		275,096		—
Construction residential real estate < 60 months		1,106		—		282		1,388		228,805		230,193		282
Residential real estate first lien		5,428		1,463		2,978		9,869		920,707		930,576		945
Residential real estate all other		520		55		1,606		2,181		170,702		172,883		384
Farmland		1,297		344		6,223		7,864		246,466		254,330		135
Commercial and agricultural non-real estate		2,788		1,794		4,345		8,927		1,184,792		1,193,719		465
Consumer non-real estate		2,154		501		534		3,189		373,075		376,264		386
Oil and gas		—		—		—		—		428,866		428,866		—
Other loans		951		1,223		6,618		8,792		813,286		822,078		2,170
Total	$	16,174	$	5,574	$	23,784	$	45,532	$	6,348,974	$	6,394,506	$	4,802

Gross Loans Held for Investment by Year of Origination and Internally Assigned Credit Grades

The following tables summarize our gross loans held for investment by year of origination and internally assigned credit grades as of the period indicated:

	Term Loans Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Revolving Loans Amortized Cost Basis		Total
	(Dollars in thousands)
December 31, 2021
Commercial real estate owner occupied
Grade 1	$	136,757	$	112,106	$	97,417	$	49,642	$	28,208	$	94,015	$	17,669	$	535,814
Grade 2		35,192		33,198		21,570		8,397		7,871		28,395		8,682		143,305
Grade 3		—		275		606		261		465		1,028		62		2,697
Grade 4		337		600		890		445		—		326		325		2,923
Total commercial real estate owner occupied loans		172,286		146,179		120,483		58,745		36,544		123,764		26,738		684,739
Commercial real estate non-owner occupied
Grade 1		252,718		204,892		114,429		51,440		37,305		118,264		29,257		808,305
Grade 2		53,548		51,206		50,912		38,850		19,466		36,808		24,335		275,125
Grade 3		7,095		—		3,254		121		234		656		—		11,360
Grade 4		407		—		—		35		—		92		—		534
Total commercial real estate non-owner occupied loans		313,768		256,098		168,595		90,446		57,005		155,820		53,592		1,095,324
Construction and development < 60 months
Grade 1		173,384		34,351		57,729		9,276		1,953		4,181		32,294		313,168
Grade 2		37,275		7,511		13,161		4,526		803		510		37,153		100,939
Grade 3		1,273		—		—		6		—		—		—		1,279
Grade 4		—		—		56		6		18		—		—		80
Total construction and development < 60 months		211,932		41,862		70,946		13,814		2,774		4,691		69,447		415,466
Construction residential real estate < 60 months
Grade 1		193,311		7,786		41		—		18		29		16,247		217,432
Grade 2		28,170		2,564		—		—		—		425		5,455		36,614
Grade 3		478		—		—		—		—		—		—		478
Total construction residential real estate < 60 months		221,959		10,350		41		—		18		454		21,702		254,524
Residential real estate first lien
Grade 1		256,834		174,718		99,082		64,949		45,211		128,898		3,928		773,620
Grade 2		44,080		26,073		15,719		12,612		10,926		38,230		—		147,640
Grade 3		1,151		1,266		2,054		1,930		1,155		3,523		—		11,079
Grade 4		64		489		479		1,247		915		1,473		—		4,667
Total residential real estate first lien		302,129		202,546		117,334		80,738		58,207		172,124		3,928		937,006
Residential real estate all other
Grade 1		16,376		13,320		8,691		5,609		4,101		12,386		30,840		91,323
Grade 2		2,183		2,941		1,919		1,500		895		2,202		55,000		66,640
Grade 3		250		98		112		232		702		309		538		2,241
Grade 4		156		180		—		38		12		84		344		814
Total residential real estate all other		18,965		16,539		10,722		7,379		5,710		14,981		86,722		161,018
Farmland
Grade 1		47,485		39,216		23,627		15,180		12,579		29,457		6,946		174,490
Grade 2		16,063		8,702		23,688		5,488		4,159		10,848		10,455		79,403
Grade 3		3,587		4,021		1,514		74		1,293		1,316		3,386		15,191
Grade 4		1,109		379		—		1,121		109		145		232		3,095
Total farmland		68,244		52,318		48,829		21,863		18,140		41,766		21,019		272,179
Commercial and agricultural non-real estate
Grade 1		353,164		102,137		83,615		33,943		27,701		43,750		288,745		933,055
Grade 2		85,920		30,568		25,097		9,607		2,612		10,575		105,682		270,061
Grade 3		2,995		2,185		1,347		11,479		1,291		599		26,642		46,538
Grade 4		870		212		1,222		654		573		1,109		2,193		6,833
Total commercial and agricultural non-real estate		442,949		135,102		111,281		55,683		32,177		56,033		423,262		1,256,487
Consumer non-real estate
Grade 1		201,893		80,616		43,793		17,587		5,723		2,048		20,600		372,260
Grade 2		19,349		7,551		6,119		2,167		816		1,342		996		38,340
Grade 3		1,146		307		551		203		86		31		4		2,328
Grade 4		62		90		199		69		14		8		—		442
Total consumer non-real estate		222,450		88,564		50,662		20,026		6,639		3,429		21,600		413,370
Oil and gas
Grade 1		188,072		26,090		6,579		1,257		89		73		139,687		361,847
Grade 2		17,150		9,774		13,909		2,657		170		215		13,186		57,061
Grade 3		6,641		10		—		—		—		255		2,024		8,930
Grade 4		1,000		—		—		—		—		—		70		1,070
Total oil and gas		212,863		35,874		20,488		3,914		259		543		154,967		428,908
Other loans
Grade 1		109,830		38,379		28,176		20,171		13,908		8,425		26,076		244,965
Grade 2		283		—		—		73		2,187		1,041		488		4,072
Grade 3		—		—		—		—		—		43		1,073		1,116
Grade 4		—		8		115		—		—		44		101		268
Total other loans		110,113		38,387		28,291		20,244		16,095		9,553		27,738		250,421
Total loans held for investment	$	2,297,658	$	1,023,819	$	747,672	$	372,852	$	233,568	$	583,158	$	910,715	$	6,169,442

	Term Loans Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Revolving Loans Amortized Cost Basis		Total
	(Dollars in thousands)
December 31, 2020
Commercial real estate owner occupied
Grade 1	$	136,638	$	107,664	$	75,262	$	46,584	$	37,857	$	89,940	$	18,941	$	512,886
Grade 2		42,993		31,817		11,060		9,644		14,558		25,494		4,209		139,775
Grade 3		1,010		32		334		704		895		2,671		—		5,646
Grade 4		37		66		742		—		251		52		307		1,455
Total commercial real estate owner occupied loans		180,678		139,579		87,398		56,932		53,561		118,157		23,457		659,762
Commercial real estate non-owner occupied
Grade 1		282,985		166,369		88,717		72,117		86,190		81,749		31,747		809,874
Grade 2		62,688		56,026		27,188		20,416		8,755		41,492		5,890		222,455
Grade 3		7,718		3,137		472		1,937		40		148		150		13,602
Grade 4		4,719		89		—		—		—		—		—		4,808
Total commercial real estate non-owner occupied loans		358,110		225,621		116,377		94,470		94,985		123,389		37,787		1,050,739
Construction and development < 60 months
Grade 1		121,699		62,722		12,821		4,655		2,334		3,824		22,288		230,343
Grade 2		13,433		11,142		3,973		764		157		540		10,798		40,807
Grade 3		3,842		—		9		—		—		—		—		3,851
Grade 4		—		64		9		22		—		—		—		95
Total construction and development < 60 months		138,974		73,928		16,812		5,441		2,491		4,364		33,086		275,096
Construction residential real estate < 60 months
Grade 1		159,432		4,214		69		21		33		23		25,918		189,710
Grade 2		27,400		580		—		—		—		468		10,030		38,478
Grade 3		1,885		120		—		—		—		—		—		2,005
Total construction residential real estate < 60 months		188,717		4,914		69		21		33		491		35,948		230,193
Residential real estate first lien
Grade 1		281,908		140,246		87,317		70,541		50,419		138,772		3,362		772,565
Grade 2		35,924		20,492		21,965		13,447		12,254		34,312		—		138,394
Grade 3		2,754		2,029		1,375		2,073		1,213		5,194		—		14,638
Grade 4		731		733		478		210		1,186		1,590		—		4,928
Grade 5		—		—		—		—		51		—		—		51
Total residential real estate first lien		321,317		163,500		111,135		86,271		65,123		179,868		3,362		930,576
Residential real estate all other
Grade 1		21,492		15,461		11,010		6,717		5,381		11,037		29,851		100,949
Grade 2		3,694		1,675		1,268		1,809		450		2,793		56,295		67,984
Grade 3		384		461		328		116		119		221		494		2,123
Grade 4		204		217		570		65		34		715		22		1,827
Total residential real estate all other		25,774		17,814		13,176		8,707		5,984		14,766		86,662		172,883
Farmland
Grade 1		51,284		27,116		18,993		13,821		13,517		27,100		8,185		160,016
Grade 2		15,737		30,684		6,639		6,391		4,763		8,916		7,140		80,270
Grade 3		3,681		290		152		1,055		703		551		1,955		8,387
Grade 4		414		14		4,058		296		340		223		312		5,657
Total farmland		71,116		58,104		29,842		21,563		19,323		36,790		17,592		254,330
Commercial and agricultural non-real estate
Grade 1		225,207		146,263		118,571		77,547		46,687		37,767		256,282		908,324
Grade 2		64,187		40,901		29,787		6,590		7,054		22,710		73,134		244,363
Grade 3		18,922		1,400		1,402		723		271		327		12,659		35,704
Grade 4		584		1,607		652		241		1,139		146		959		5,328
Total commercial and agricultural non-real estate		308,900		190,171		150,412		85,101		55,151		60,950		343,034		1,193,719
Consumer non-real estate
Grade 1		168,544		94,375		41,715		13,157		6,831		1,768		18,132		344,522
Grade 2		13,444		9,123		4,104		842		507		266		574		28,860
Grade 3		568		840		450		175		75		63		2		2,173
Grade 4		89		287		144		95		47		40		7		709
Total consumer non-real estate		182,645		104,625		46,413		14,269		7,460		2,137		18,715		376,264
Oil and gas
Grade 1		151,000		19,288		15,589		464		25		4,777		92,123		283,266
Grade 2		73,882		11,996		6,217		396		169		81		34,210		126,951
Grade 3		9,010		111		64		66		364		—		2,418		12,033
Grade 4		6,600		—		—		—		—		16		—		6,616
Total oil and gas		240,492		31,395		21,870		926		558		4,874		128,751		428,866
Other loans
Grade 1		685,426		32,392		25,707		20,638		16,378		10,341		22,976		813,858
Grade 2		—		—		17		2,936		1,126		2,179		692		6,950
Grade 3		—		—		78		—		53		67		36		234
Grade 4		—		—		—		124		208		33		671		1,036
Total other loans		685,426		32,392		25,802		23,698		17,765		12,620		24,375		822,078
Total loans held for investment	$	2,702,149	$	1,042,043	$	619,306	$	397,399	$	322,434	$	558,406	$	752,769	$	6,394,506

Activity in Allowance for Credit Losses on Loans

The following table details activity in the allowance for credit losses on loans for the period presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Allowance for Credit Losses
	Balance at beginning of period		Impact of CECL adoption			Initial allowance on loans purchased with credit deterioration		Charge- offs			Recoveries		Net charge-offs			Provision for credit losses on loans			Balance at end of period
	(Dollars in thousands)
Year ended December 31, 2021
Real estate:
Commercial real estate owner occupied	$	6,911	$	—		$	1,080	$	(38	)	$	74	$	36		$	(1,617	)	$	6,410
Commercial real estate non-owner occupied		12,318		—			824		(803	)		67		(736	)		4,581			16,987
Construction and development < 60 months		2,723		—			173		—			12		12			582			3,490
Construction residential real estate < 60 months		726		—			—		—			—		—			366			1,092
Residential real estate first lien		2,822		—			126		(87	)		55		(32	)		160			3,076
Residential real estate all other		2,236		—			—		(521	)		52		(469	)		337			2,104
Farmland		3,153		—			395		(889	)		1		(888	)		2,162			4,822
Commercial and agricultural non-real estate		33,020		—			5,663		(4,509	)		218		(4,291	)		(8,319	)		26,073
Consumer non-real estate		3,542		—			38		(864	)		326		(538	)		692			3,734
Oil and gas		20,733		—			—		—			—		—			(7,755	)		12,978
Other loans		3,182		—			—		(134	)		1		(133	)		121			3,170
Total	$	91,366	$	—		$	8,299	$	(7,845	)	$	806	$	(7,039	)	$	(8,690	)	$	83,936
	Balance at beginning of period		Impact of CECL adoption			Initial allowance on loans purchased with credit deterioration		Charge- offs			Recoveries		Net charge-offs			Provision for credit losses on loans			Balance at end of period
Year ended December 31, 2020
Real estate:
Commercial real estate owner occupied	$	5,600	$	(2,704	)	$	432	$	(773	)	$	10	$	(763	)	$	4,346		$	6,911
Commercial real estate non-owner occupied		8,459		(5,265	)		—		(3,609	)		—		(3,609	)		12,733			12,318
Construction and development < 60 months		2,276		(916	)		—		(59	)		123		64			1,299			2,723
Construction residential real estate < 60 months		1,960		(690	)		—		(29	)		—		(29	)		(515	)		726
Residential real estate first lien		8,781		(3,052	)		7		(465	)		44		(421	)		(2,493	)		2,822
Residential real estate all other		2,763		(1,383	)		—		(126	)		54		(72	)		928			2,236
Farmland		2,818		(1,402	)		1		(2,055	)		—		(2,055	)		3,791			3,153
Commercial and agricultural non-real estate		12,310		13,949			62		(4,161	)		540		(3,621	)		10,320			33,020
Consumer non-real estate		3,284		(548	)		—		(1,142	)		224		(918	)		1,724			3,542
Oil and gas		3,355		(1,068	)		—		(11,245	)		—		(11,245	)		29,691			20,733
Other loans		2,632		(116	)		—		(168	)		10		(158	)		824			3,182
Total	$	54,238	$	(3,195	)	$	502	$	(23,832	)	$	1,005	$	(22,827	)	$	62,648		$	91,366

Purchased Credit Deteriorated Loans

The Company has purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The purchased credit deteriorated loans for the period are as follows:

	Loans acquired with deteriorated credit quality
	(Dollars in thousands)
For the year ended December 31, 2021
Purchase price of loans at acquisition	$	39,284
Allowance for credit losses at acquisition		8,299
Par value of acquired loans at acquisition	$	47,583
For the year ended December 31, 2020
Purchase price of loans at acquisition	$	1,761
Allowance for credit losses at acquisition		502
Par value of acquired loans at acquisition	$	2,263

Collateral-Dependent Gross Loans Held for Investment by Collateral Type and Related Specific Allocation

The following table summarizes collateral-dependent gross loans held for investment by collateral type and the related specific allocation as follows:

	Collateral Type
	Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
As of December 31, 2021	(Dollars in thousands)
Real estate:
Commercial real estate owner occupied	$	1,952	$	—	$	—	$	—	$	1,952	$	576
Commercial real estate non-owner occupied		1,404		—		—		—		1,404		263
Construction and development < 60 months		—		—		—		—		—		—
Construction residential real estate < 60 months		—		—		—		—		—		—
Residential real estate first lien		871		—		—		—		871		143
Residential real estate all other		199		—		—		—		199		178
Farmland		8,703		—		—		—		8,703		1,805
Commercial and agricultural non-real estate		—		6,363		—		5,202		11,565		4,867
Consumer non-real estate		—		—		—		54		54		20
Oil and gas		—		—		—		—		—		—
Other loans		—		109		—		—		109		71
Total collateral-dependent loans held for investment	$	13,129	$	6,472	$	—	$	5,256	$	24,857	$	7,923
	Collateral Type
	Real Estate		Business Assets		Energy Reserves		Other Assets		Total		Specific Allocation
As of December 31, 2020	(Dollars in thousands)
Real estate:
Commercial real estate owner occupied	$	848	$	—	$	—	$	—	$	848	$	226
Commercial real estate non-owner occupied		4,719		—		—		—		4,719		1,000
Construction and development < 60 months		—		—		—		—		—		—
Construction residential real estate < 60 months		—		—		—		—		—		—
Residential real estate first lien		2,117		—		—		—		2,117		373
Residential real estate all other		866		—		—		—		866		616
Farmland		3,258		—		—		—		3,258		1,114
Commercial and agricultural non-real estate		—		8,460		—		413		8,873		2,813
Consumer non-real estate		—		—		—		109		109		58
Oil and gas		—		—		—		—		—		—
Other loans		—		13		—		—		13		12
Total collateral-dependent loans held for investment	$	11,808	$	8,473	$	—	$	522	$	20,803	$	6,212

Transfers from Loans and Premises and Equipment to Other Real Estate Owned, Repossessed Assets and Other Assets

Transfers from loans and premises and equipment to other real estate owned, repossessed assets, and other assets during the periods presented are summarized as follows:

	Year ended December 31,
	2021		2020		2019
	(Dollars in thousands)
Other real estate owned	$	12,651	$	32,093	$	3,941
Repossessed assets		844		1,418		1,473
Other assets		—		11,105		—
Total	$	13,495	$	44,616	$	5,414

Related Party Loans

A summary of these loans is as follows:

Year Ended December 31,	Balance Beginning of the Period		Additions		Collections/ Terminations			Balance End of the Period
	(Dollars in thousands)
2021	$	22,057	$	31,574	$	(25,339	)	$	28,292
2020		20,281		19,682		(17,906	)		22,057
2019		19,891		12,371		(11,981	)		20,281