XML 17 R11.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Loans Held for Investment and Allowance for Credit Losses on Loans
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Loans Held for Investment and Allowance for Credit Losses on Loans

(3) LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES ON LOANS

 

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

 

June 30, 2024

 

 

December 31, 2023

 

 

(Dollars in thousands)

 

  Real estate:

 

 

 

 

 

    Commercial real estate owner occupied

 

954,942

 

 

 

960,944

 

    Commercial real estate non-owner occupied

 

1,604,132

 

 

 

1,486,420

 

    Construction and development < 60 months

 

680,807

 

 

 

642,643

 

    Construction residential real estate < 60 months

 

288,900

 

 

 

283,486

 

    Residential real estate first lien

 

1,335,124

 

 

 

1,258,744

 

    Residential real estate all other

 

260,036

 

 

 

244,696

 

    Agriculture

 

432,360

 

 

 

427,139

 

  Commercial non-real estate

 

1,436,349

 

 

 

1,289,452

 

  Consumer non-real estate

 

469,084

 

 

 

476,467

 

  Oil and gas

 

585,714

 

 

 

586,654

 

           Total (1)

$

8,047,448

 

 

$

7,656,645

 

(1) Excludes accrued interest receivable of $42.8 million at June 30, 2024 and $39.4 million at December 31, 2023, that is recorded in accrued interest receivable and other assets.

 

 

 

The Company's loans are currently 84% held by BancFirst and 16% held by Pegasus and Worthington. In addition, approximately 69% of the Company's loans are secured by real estate. Credit risk on loans is managed through limits on amounts loaned to individual and related borrowers, underwriting standards and loan monitoring procedures. The amounts and types of collateral obtained, if any, to secure loans are based upon the Company’s underwriting standards and management’s credit evaluation. Collateral varies, but may include real estate, equipment, accounts receivable, inventory, livestock and/or securities. The Company’s interest in collateral is secured through filing mortgages and liens, or by possession of the collateral.

 

The Company's portfolio segment descriptions and the weighted average remaining life of portfolio segments are disclosed in Note (5) to the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

Other Real Estate Owned and Repossessed Assets and Loan Modifications

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

 

 

 

 

 

 

 

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

Other real estate owned and repossessed assets

 

$

38,497

 

 

$

34,200

 

As of both June 30, 2024 and December 31, 2023, other real estate owned included a commercial real estate property recorded at approximately $30.7 million and $29.4 million, respectively. The increase in OREO and this commercial real estate property was due to tenant improvements during the six months ended June 30, 2024. Rental income for this property is included in other noninterest income on the consolidated statements of comprehensive income. Operating expense for this property is included in net expense from other real estate owned in noninterest expense on the consolidated statements of comprehensive income.

This property had the following rental income and operating expenses for the periods presented.

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Rental income

 

$

3,085

 

 

$

2,778

 

 

$

6,026

 

 

$

5,468

 

Operating expense

 

 

2,673

 

 

 

2,967

 

 

 

4,923

 

 

 

5,348

 

 

During the six months ended June 30, 2024, the Company sold property held in other real estate owned for a total gain of $1.3 million, compared to a total gain of $266,000 in the six months ended June 30, 2023.

The Company charges interest on principal balances outstanding on modified loans during deferral periods. The current and future financial effects of the recorded balance of loans considered to be modified during the period were not considered to be material. The recorded balance of loans modified during the six months ended June 30, 2024 was approximately $5.9 million compared to $5.3 million during the year ended December 31, 2023.

Nonaccrual loans

The Company did not recognize any interest income on nonaccrual loans for either the six months ended June 30, 2024 or 2023. In addition, all loans identified as nonaccrual loans have related allowances for credit losses at June 30, 2024 and December 31, 2023, respectively. Had nonaccrual loans performed in accordance with their original contractual terms, the Company would have recognized additional interest income of approximately $1.8 million for the six months ended June 30, 2024 and approximately $718,000 for the six months ended June 30, 2023.

Nonaccrual loans guaranteed by government agencies totaled approximately $8.5 million at June 30, 2024 and approximately $6.7 million at December 31, 2023.

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

 

 

June 30, 2024

 

 

December 31, 2023

 

 

 

(Dollars in thousands)

 

  Real estate:

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

5,543

 

 

$

1,686

 

Commercial real estate non-owner occupied

 

 

3,280

 

 

 

874

 

Construction and development < 60 months

 

 

20,142

 

 

 

800

 

Construction residential real estate < 60 months

 

 

745

 

 

 

638

 

Residential real estate first lien

 

 

3,425

 

 

 

3,336

 

Residential real estate all other

 

 

628

 

 

 

899

 

Agriculture

 

 

2,092

 

 

 

3,662

 

  Commercial non-real estate

 

 

5,605

 

 

 

10,101

 

  Consumer non-real estate

 

 

685

 

 

 

449

 

  Oil and gas

 

 

1,876

 

 

 

2,128

 

Total

 

$

44,021

 

 

$

24,573

 

 

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 the Company's 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)

 

As of June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

3,020

 

 

$

38

 

 

$

5,379

 

 

$

8,437

 

 

$

946,505

 

 

$

954,942

 

 

$

532

 

Commercial real estate non-owner occupied

 

 

—

 

 

 

141

 

 

 

1,544

 

 

 

1,685

 

 

 

1,602,447

 

 

 

1,604,132

 

 

 

803

 

Construction and development < 60 months

 

 

405

 

 

 

1,738

 

 

 

831

 

 

 

2,974

 

 

 

677,833

 

 

 

680,807

 

 

 

31

 

Construction residential real estate < 60 months

 

 

229

 

 

 

117

 

 

 

407

 

 

 

753

 

 

 

288,147

 

 

 

288,900

 

 

 

—

 

Residential real estate first lien

 

 

4,929

 

 

 

2,144

 

 

 

2,213

 

 

 

9,286

 

 

 

1,325,838

 

 

 

1,335,124

 

 

 

961

 

Residential real estate all other

 

 

866

 

 

 

152

 

 

 

835

 

 

 

1,853

 

 

 

258,183

 

 

 

260,036

 

 

 

250

 

Agriculture

 

 

1,805

 

 

 

937

 

 

 

1,447

 

 

 

4,189

 

 

 

428,171

 

 

 

432,360

 

 

 

916

 

  Commercial non-real estate

 

 

1,857

 

 

 

831

 

 

 

5,256

 

 

 

7,944

 

 

 

1,428,405

 

 

 

1,436,349

 

 

 

587

 

  Consumer non-real estate

 

 

3,166

 

 

 

555

 

 

 

495

 

 

 

4,216

 

 

 

464,868

 

 

 

469,084

 

 

 

200

 

  Oil and gas

 

 

588

 

 

 

416

 

 

 

—

 

 

 

1,004

 

 

 

584,710

 

 

 

585,714

 

 

 

—

 

Total

 

$

16,865

 

 

$

7,069

 

 

$

18,407

 

 

$

42,341

 

 

$

8,005,107

 

 

$

8,047,448

 

 

$

4,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

1,386

 

 

$

26

 

 

$

5,598

 

 

$

7,010

 

 

$

953,934

 

 

$

960,944

 

 

$

4,377

 

Commercial real estate non-owner occupied

 

 

2,224

 

 

 

7,371

 

 

 

1,786

 

 

 

11,381

 

 

 

1,475,039

 

 

 

1,486,420

 

 

 

913

 

Construction and development < 60 months

 

 

198

 

 

 

158

 

 

 

800

 

 

 

1,156

 

 

 

641,487

 

 

 

642,643

 

 

 

—

 

Construction residential real estate < 60 months

 

 

1,542

 

 

 

206

 

 

 

405

 

 

 

2,153

 

 

 

281,333

 

 

 

283,486

 

 

 

332

 

Residential real estate first lien

 

 

3,879

 

 

 

1,204

 

 

 

1,849

 

 

 

6,932

 

 

 

1,251,812

 

 

 

1,258,744

 

 

 

731

 

Residential real estate all other

 

 

757

 

 

 

190

 

 

 

613

 

 

 

1,560

 

 

 

243,136

 

 

 

244,696

 

 

 

549

 

Agriculture

 

 

1,694

 

 

 

724

 

 

 

1,227

 

 

 

3,645

 

 

 

423,494

 

 

 

427,139

 

 

 

579

 

  Commercial non-real estate

 

 

1,501

 

 

 

436

 

 

 

10,028

 

 

 

11,965

 

 

 

1,277,487

 

 

 

1,289,452

 

 

 

1,714

 

  Consumer non-real estate

 

 

3,248

 

 

 

1,090

 

 

 

594

 

 

 

4,932

 

 

 

471,535

 

 

 

476,467

 

 

 

347

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

92

 

 

 

92

 

 

 

586,562

 

 

 

586,654

 

 

 

—

 

Total

 

$

16,429

 

 

$

11,405

 

 

$

22,992

 

 

$

50,826

 

 

$

7,605,819

 

 

$

7,656,645

 

 

$

9,542

 

 

Credit Quality Indicators

The Company considers credit quality indicators to monitor the credit risk in the loan portfolio including volume and severity of loan delinquencies, nonaccrual loans, internal grading of loans, historical credit loss experience and economic conditions. These indicators are reviewed and updated regularly throughout the year. An internal risk grading system is used to indicate the credit risk of loans. The loan grades used by the Company are for internal risk identification purposes and do not directly correlate to regulatory categories or any financial reporting definitions. The general characteristics of the risk grades and the table summarizing the Company’s gross loans held for investment by year of origination and internally assigned credit grades as of December 31, 2023, are disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The Company’s revolving loans that are converted to term loans are not material and therefore have not been presented.

 

 

The following table summarizes the Company’s gross loans held for investment by year of origination and internally assigned credit grades:

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

(Dollars in thousands)

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

As of June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

39,257

 

 

$

104,695

 

 

$

151,859

 

 

$

111,308

 

 

$

78,999

 

 

$

186,219

 

 

$

25,667

 

 

$

698,004

 

Grade 2

 

 

23,094

 

 

 

34,818

 

 

 

49,139

 

 

 

44,044

 

 

 

21,710

 

 

 

34,604

 

 

 

24,187

 

 

 

231,596

 

Grade 3

 

 

128

 

 

 

7,339

 

 

 

3,574

 

 

 

4,489

 

 

 

939

 

 

 

4,121

 

 

 

2,100

 

 

 

22,690

 

Grade 4

 

 

—

 

 

 

372

 

 

 

21

 

 

 

170

 

 

 

352

 

 

 

1,615

 

 

 

122

 

 

 

2,652

 

Total commercial real estate owner occupied

 

 

62,479

 

 

 

147,224

 

 

 

204,593

 

 

 

160,011

 

 

 

102,000

 

 

 

226,559

 

 

 

52,076

 

 

 

954,942

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

64,168

 

 

$

258,439

 

 

$

283,026

 

 

$

187,391

 

 

$

120,052

 

 

$

126,177

 

 

$

41,093

 

 

$

1,080,346

 

Grade 2

 

 

61,660

 

 

 

104,871

 

 

 

126,693

 

 

 

89,290

 

 

 

38,105

 

 

 

71,591

 

 

 

3,122

 

 

 

495,332

 

Grade 3

 

 

8,934

 

 

 

141

 

 

 

13,635

 

 

 

1,690

 

 

 

—

 

 

 

245

 

 

 

—

 

 

 

24,645

 

Grade 4

 

 

185

 

 

 

2,043

 

 

 

643

 

 

 

316

 

 

 

98

 

 

 

524

 

 

 

—

 

 

 

3,809

 

Total commercial real estate non-owner occupied

 

 

134,947

 

 

 

365,494

 

 

 

423,997

 

 

 

278,687

 

 

 

158,255

 

 

 

198,537

 

 

 

44,215

 

 

 

1,604,132

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

49,830

 

 

$

76,166

 

 

$

146,196

 

 

$

33,350

 

 

$

9,848

 

 

$

7,591

 

 

$

51,139

 

 

$

374,120

 

Grade 2

 

 

64,768

 

 

 

118,553

 

 

 

62,487

 

 

 

8,296

 

 

 

1,590

 

 

 

14,969

 

 

 

10,703

 

 

 

281,366

 

Grade 3

 

 

2,641

 

 

 

1,829

 

 

 

—

 

 

 

354

 

 

 

71

 

 

 

68

 

 

 

19,287

 

 

 

24,250

 

Grade 4

 

 

—

 

 

 

—

 

 

 

831

 

 

 

100

 

 

 

140

 

 

 

—

 

 

 

—

 

 

 

1,071

 

Total construction and development < 60 months

 

 

117,239

 

 

 

196,548

 

 

 

209,514

 

 

 

42,100

 

 

 

11,649

 

 

 

22,628

 

 

 

81,129

 

 

 

680,807

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

78,419

 

 

$

48,981

 

 

$

15,922

 

 

$

8,162

 

 

$

98

 

 

$

546

 

 

$

30,001

 

 

$

182,129

 

Grade 2

 

 

54,233

 

 

 

33,153

 

 

 

2,447

 

 

 

15

 

 

 

12

 

 

 

—

 

 

 

11,630

 

 

 

101,490

 

Grade 3

 

 

3,503

 

 

 

408

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

396

 

 

 

4,307

 

Grade 4

 

 

568

 

 

 

200

 

 

 

206

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

974

 

Total construction residential real estate < 60 months

 

 

136,723

 

 

 

82,742

 

 

 

18,575

 

 

 

8,177

 

 

 

110

 

 

 

546

 

 

 

42,027

 

 

 

288,900

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

134,305

 

 

$

211,033

 

 

$

205,048

 

 

$

162,128

 

 

$

130,865

 

 

$

192,862

 

 

$

5,031

 

 

$

1,041,272

 

Grade 2

 

 

43,810

 

 

 

65,488

 

 

 

50,368

 

 

 

37,025

 

 

 

25,620

 

 

 

48,645

 

 

 

519

 

 

 

271,475

 

Grade 3

 

 

1,453

 

 

 

2,576

 

 

 

3,098

 

 

 

2,835

 

 

 

1,821

 

 

 

5,562

 

 

 

—

 

 

 

17,345

 

Grade 4

 

 

907

 

 

 

646

 

 

 

312

 

 

 

795

 

 

 

539

 

 

 

1,756

 

 

 

—

 

 

 

4,955

 

Grade 5

 

 

—

 

 

 

77

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

77

 

Total residential real estate first lien

 

 

180,475

 

 

 

279,820

 

 

 

258,826

 

 

 

202,783

 

 

 

158,845

 

 

 

248,825

 

 

 

5,550

 

 

 

1,335,124

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

18,801

 

 

$

34,325

 

 

$

21,028

 

 

$

6,512

 

 

$

7,196

 

 

$

12,957

 

 

$

54,939

 

 

$

155,758

 

Grade 2

 

 

3,804

 

 

 

5,198

 

 

 

4,467

 

 

 

1,341

 

 

 

1,462

 

 

 

3,918

 

 

 

79,266

 

 

 

99,456

 

Grade 3

 

 

756

 

 

 

344

 

 

 

106

 

 

 

176

 

 

 

295

 

 

 

437

 

 

 

1,507

 

 

 

3,621

 

Grade 4

 

 

—

 

 

 

174

 

 

 

67

 

 

 

—

 

 

 

—

 

 

 

26

 

 

 

934

 

 

 

1,201

 

Total residential real estate all other

 

 

23,361

 

 

 

40,041

 

 

 

25,668

 

 

 

8,029

 

 

 

8,953

 

 

 

17,338

 

 

 

136,646

 

 

 

260,036

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

26,725

 

 

$

36,340

 

 

$

44,928

 

 

$

31,695

 

 

$

22,757

 

 

$

46,282

 

 

$

46,588

 

 

$

255,315

 

Grade 2

 

 

23,833

 

 

 

21,355

 

 

 

20,788

 

 

 

16,052

 

 

 

9,606

 

 

 

19,830

 

 

 

39,081

 

 

 

150,545

 

Grade 3

 

 

5,833

 

 

 

8,951

 

 

 

1,119

 

 

 

1,076

 

 

 

2,589

 

 

 

3,072

 

 

 

1,686

 

 

 

24,326

 

Grade 4

 

 

354

 

 

 

886

 

 

 

612

 

 

 

51

 

 

 

5

 

 

 

262

 

 

 

4

 

 

 

2,174

 

Total Agriculture

 

 

56,745

 

 

 

67,532

 

 

 

67,447

 

 

 

48,874

 

 

 

34,957

 

 

 

69,446

 

 

 

87,359

 

 

 

432,360

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

98,481

 

 

$

135,724

 

 

$

155,712

 

 

$

132,447

 

 

$

28,731

 

 

$

58,159

 

 

$

421,728

 

 

$

1,030,982

 

Grade 2

 

 

57,646

 

 

 

94,429

 

 

 

30,313

 

 

 

20,608

 

 

 

5,593

 

 

 

6,885

 

 

 

176,353

 

 

 

391,827

 

Grade 3

 

 

1,471

 

 

 

2,160

 

 

 

2,183

 

 

 

1,035

 

 

 

235

 

 

 

250

 

 

 

2,637

 

 

 

9,971

 

Grade 4

 

 

787

 

 

 

364

 

 

 

793

 

 

 

255

 

 

 

508

 

 

 

116

 

 

 

563

 

 

 

3,386

 

Grade 5

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

—

 

 

 

177

 

 

 

—

 

 

 

183

 

Total commercial non-real estate

 

 

158,385

 

 

 

232,677

 

 

 

189,001

 

 

 

154,351

 

 

 

35,067

 

 

 

65,587

 

 

 

601,281

 

 

 

1,436,349

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

105,282

 

 

$

153,775

 

 

$

77,329

 

 

$

40,937

 

 

$

11,724

 

 

$

6,655

 

 

$

12,793

 

 

$

408,495

 

Grade 2

 

 

9,876

 

 

 

17,288

 

 

 

10,906

 

 

 

5,582

 

 

 

1,542

 

 

 

1,219

 

 

 

6,427

 

 

 

52,840

 

Grade 3

 

 

1,059

 

 

 

1,839

 

 

 

1,641

 

 

 

1,119

 

 

 

274

 

 

 

276

 

 

 

15

 

 

 

6,223

 

Grade 4

 

 

198

 

 

 

556

 

 

 

314

 

 

 

282

 

 

 

104

 

 

 

68

 

 

 

4

 

 

 

1,526

 

Total consumer non-real estate

 

 

116,415

 

 

 

173,458

 

 

 

90,190

 

 

 

47,920

 

 

 

13,644

 

 

 

8,218

 

 

 

19,239

 

 

 

469,084

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grade 1

 

$

76,512

 

 

$

63,488

 

 

$

5,807

 

 

$

26,153

 

 

$

5,951

 

 

$

3,116

 

 

$

269,441

 

 

$

450,468

 

Grade 2

 

 

60,737

 

 

 

9,097

 

 

 

5,045

 

 

 

677

 

 

 

374

 

 

 

267

 

 

 

58,161

 

 

 

134,358

 

Grade 3

 

 

29

 

 

 

109

 

 

 

—

 

 

 

183

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

321

 

Grade 4

 

 

—

 

 

 

—

 

 

 

—

 

 

 

127

 

 

 

—

 

 

 

440

 

 

 

—

 

 

 

567

 

Total oil and gas

 

 

137,278

 

 

 

72,694

 

 

 

10,852

 

 

 

27,140

 

 

 

6,325

 

 

 

3,823

 

 

 

327,602

 

 

 

585,714

 

Total loans held for investment

 

$

1,124,047

 

 

$

1,658,230

 

 

$

1,498,663

 

 

$

978,072

 

 

$

529,805

 

 

$

861,507

 

 

$

1,397,124

 

 

$

8,047,448

 

 

 

The following tables summarize the Company's gross charge-offs by year of origination for the periods indicated:

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Three months ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

2

 

 

 

23

 

 

 

—

 

 

 

2

 

 

 

4

 

 

 

36

 

 

 

—

 

 

 

67

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

6

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

6

 

 

 

155

 

 

 

43

 

 

 

8

 

 

 

—

 

 

 

190

 

 

 

378

 

 

 

780

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

21

 

 

 

256

 

 

 

150

 

 

 

28

 

 

 

21

 

 

 

30

 

 

 

4

 

 

 

510

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total current-period gross charge-offs

 

$

29

 

 

$

434

 

 

$

199

 

 

$

52

 

 

$

25

 

 

$

256

 

 

$

382

 

 

$

1,377

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Three months ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

19

 

 

 

21

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

42

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

301

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

302

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

42

 

 

 

34

 

 

 

1

 

 

 

20

 

 

 

—

 

 

 

5

 

 

 

—

 

 

 

102

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

29

 

 

 

186

 

 

 

115

 

 

 

14

 

 

 

28

 

 

 

11

 

 

 

15

 

 

 

398

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

Total current-period gross charge-offs

 

$

71

 

 

$

224

 

 

$

135

 

 

$

358

 

 

$

29

 

 

$

18

 

 

$

15

 

 

$

850

 

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Six months ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

15

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

12

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

14

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

3

 

 

 

23

 

 

 

—

 

 

 

3

 

 

 

4

 

 

 

57

 

 

 

—

 

 

 

90

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

27

 

 

 

29

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

37

 

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

50

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

6

 

 

 

1,156

 

 

 

318

 

 

 

140

 

 

 

12

 

 

 

316

 

 

 

1,886

 

 

 

3,834

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

21

 

 

 

500

 

 

 

247

 

 

 

79

 

 

 

34

 

 

 

45

 

 

 

15

 

 

 

941

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

9

 

 

 

83

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

92

 

Total current-period gross charge-offs

 

$

30

 

 

$

1,703

 

 

$

685

 

 

$

251

 

 

$

51

 

 

$

420

 

 

$

1,928

 

 

$

5,068

 

 

 

 

Term Loans Amortized Cost Basis by Origination Year

 

 

Revolving Loans

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Amortized Cost Basis

 

 

Total

 

 

 

(Dollars in thousands)

 

Six months ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Commercial real estate owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

$

—

 

 

$

7

 

 

$

1

 

 

$

22

 

 

$

18

 

 

$

—

 

 

$

—

 

 

$

48

 

 Commercial real estate non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

 

 

—

 

 

 

3

 

 Construction and development < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4

 

 Construction residential real estate < 60 months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 Residential real estate first lien

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

—

 

 

 

19

 

 

 

21

 

 

 

—

 

 

 

4

 

 

 

—

 

 

 

44

 

 Residential real estate all other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

4

 

 

 

19

 

 

 

—

 

 

 

1

 

 

 

4

 

 

 

—

 

 

 

28

 

 Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

4

 

 

 

—

 

 

 

317

 

 

 

14

 

 

 

2

 

 

 

—

 

 

 

337

 

 Commercial non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

42

 

 

 

101

 

 

 

63

 

 

 

20

 

 

 

—

 

 

 

52

 

 

 

—

 

 

 

278

 

 Consumer non-real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

29

 

 

 

262

 

 

 

147

 

 

 

29

 

 

 

37

 

 

 

17

 

 

 

17

 

 

 

538

 

 Oil and gas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current-period gross charge-offs

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

Total current-period gross charge-offs

 

$

71

 

 

$

382

 

 

$

249

 

 

$

411

 

 

$

70

 

 

$

82

 

 

$

17

 

 

$

1,282

 

 

Allowance for Credit Losses Methodology

 

The Company determines its provision for credit losses and allowance for credit losses using the current expected credit loss methodology that is referred to as the current expected credit loss ("CECL") model. The allowance for current expected credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The allowance for credit losses methodology is disclosed in Note (5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

The following tables detail 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

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for/(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,468

 

 

$

—

 

 

$

11

 

 

$

11

 

 

$

(109

)

 

$

7,370

 

Commercial real estate non-owner occupied

 

 

33,180

 

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

688

 

 

 

33,867

 

Construction and development < 60 months

 

 

6,596

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

184

 

 

 

6,780

 

Construction residential real estate < 60 months

 

 

3,464

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

55

 

 

 

3,519

 

Residential real estate first lien

 

 

4,923

 

 

 

(67

)

 

 

21

 

 

 

(46

)

 

 

695

 

 

 

5,572

 

Residential real estate all other

 

 

1,652

 

 

 

—

 

 

 

3

 

 

 

3

 

 

 

74

 

 

 

1,729

 

Agriculture

 

 

6,137

 

 

 

(19

)

 

 

5

 

 

 

(14

)

 

 

(206

)

 

 

5,917

 

  Commercial non-real estate

 

 

20,482

 

 

 

(780

)

 

 

280

 

 

 

(500

)

 

 

1,493

 

 

 

21,475

 

  Consumer non-real estate

 

 

4,335

 

 

 

(510

)

 

 

58

 

 

 

(452

)

 

 

500

 

 

 

4,383

 

  Oil and gas

 

 

9,030

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(16

)

 

 

9,014

 

Total

 

$

97,267

 

 

$

(1,377

)

 

$

378

 

 

$

(999

)

 

$

3,358

 

 

$

99,626

 

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for/(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

6,547

 

 

$

—

 

 

$

3

 

 

$

3

 

 

$

258

 

 

$

6,808

 

Commercial real estate non-owner occupied

 

 

32,120

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,312

 

 

 

33,432

 

Construction and development < 60 months

 

 

3,608

 

 

 

(2

)

 

 

3

 

 

 

1

 

 

 

(169

)

 

 

3,440

 

Construction residential real estate < 60 months

 

 

3,226

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

327

 

 

 

3,553

 

Residential real estate first lien

 

 

4,454

 

 

 

(42

)

 

 

10

 

 

 

(32

)

 

 

333

 

 

 

4,755

 

Residential real estate all other

 

 

1,444

 

 

 

(2

)

 

 

1

 

 

 

(1

)

 

 

218

 

 

 

1,661

 

Agriculture

 

 

6,268

 

 

 

(302

)

 

 

7

 

 

 

(295

)

 

 

453

 

 

 

6,426

 

  Commercial non-real estate

 

 

25,079

 

 

 

(102

)

 

 

127

 

 

 

25

 

 

 

23

 

 

 

25,127

 

  Consumer non-real estate

 

 

4,232

 

 

 

(398

)

 

 

35

 

 

 

(363

)

 

 

475

 

 

 

4,344

 

  Oil and gas

 

 

7,782

 

 

 

(2

)

 

 

—

 

 

 

(2

)

 

 

(406

)

 

 

7,374

 

Total

 

$

94,760

 

 

$

(850

)

 

$

186

 

 

$

(664

)

 

$

2,824

 

 

$

96,920

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for/(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

7,483

 

 

$

(15

)

 

$

31

 

 

$

16

 

 

$

(129

)

 

$

7,370

 

Commercial real estate non-owner occupied

 

 

33,080

 

 

 

(14

)

 

 

—

 

 

 

(14

)

 

 

801

 

 

 

33,867

 

Construction and development < 60 months

 

 

3,950

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,830

 

 

 

6,780

 

Construction residential real estate < 60 months

 

 

3,414

 

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

108

 

 

 

3,519

 

Residential real estate first lien

 

 

4,914

 

 

 

(90

)

 

 

25

 

 

 

(65

)

 

 

723

 

 

 

5,572

 

Residential real estate all other

 

 

1,646

 

 

 

(29

)

 

 

8

 

 

 

(21

)

 

 

104

 

 

 

1,729

 

Agriculture

 

 

6,137

 

 

 

(50

)

 

 

17

 

 

 

(33

)

 

 

(187

)

 

 

5,917

 

  Commercial non-real estate

 

 

22,745

 

 

 

(3,834

)

 

 

313

 

 

 

(3,521

)

 

 

2,251

 

 

 

21,475

 

  Consumer non-real estate

 

 

4,401

 

 

 

(941

)

 

 

127

 

 

 

(814

)

 

 

796

 

 

 

4,383

 

  Oil and gas

 

 

9,030

 

 

 

(92

)

 

 

—

 

 

 

(92

)

 

 

76

 

 

 

9,014

 

Total

 

$

96,800

 

 

$

(5,068

)

 

$

521

 

 

$

(4,547

)

 

$

7,373

 

 

$

99,626

 

 

 

 

 

Allowance for Credit Losses

 

 

 

Balance at
beginning of
period

 

 

Charge-
offs

 

 

Recoveries

 

 

Net
charge-offs

 

 

Provision for/(benefit from) credit losses on loans

 

 

Balance at
end of
period

 

 

 

(Dollars in thousands)

 

Six Months Ended June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

6,416

 

 

$

(48

)

 

$

52

 

 

$

4

 

 

$

388

 

 

$

6,808

 

Commercial real estate non-owner occupied

 

 

30,190

 

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

3,245

 

 

 

33,432

 

Construction and development < 60 months

 

 

3,778

 

 

 

(4

)

 

 

6

 

 

 

2

 

 

 

(340

)

 

 

3,440

 

Construction residential real estate < 60 months

 

 

3,275

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

278

 

 

 

3,553

 

Residential real estate first lien

 

 

4,092

 

 

 

(44

)

 

 

13

 

 

 

(31

)

 

 

694

 

 

 

4,755

 

Residential real estate all other

 

 

1,418

 

 

 

(28

)

 

 

3

 

 

 

(25

)

 

 

268

 

 

 

1,661

 

Agriculture

 

 

6,217

 

 

 

(337

)

 

 

13

 

 

 

(324

)

 

 

533

 

 

 

6,426

 

  Commercial non-real estate

 

 

25,106

 

 

 

(278

)

 

 

149

 

 

 

(129

)

 

 

150

 

 

 

25,127

 

  Consumer non-real estate

 

 

4,132

 

 

 

(538

)

 

 

92

 

 

 

(446

)

 

 

658

 

 

 

4,344

 

  Oil and gas

 

 

8,104

 

 

 

(2

)

 

 

—

 

 

 

(2

)

 

 

(728

)

 

 

7,374

 

Total

 

$

92,728

 

 

$

(1,282

)

 

$

328

 

 

$

(954

)

 

$

5,146

 

 

$

96,920

 

 

Purchased Credit Deteriorated Loans

 

The Company has previously purchased loans, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The Company did not purchase credit-deteriorated loans during the six months ended June 30, 2024 and 2023.

 

Collateral Dependent Loans

A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. During the six months ended June 30, 2024 and 2023, no material amount of interest income was recognized on collateral-dependent loans subsequent to their classification as collateral-dependent.

 

 

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

 

 

 

Collateral Type

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Business Assets

 

 

Other Assets

 

 

Total

 

 

Specific Allocation

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

As of June 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate non-owner occupied

 

 

643

 

 

 

—

 

 

 

—

 

 

 

643

 

 

 

250

 

Construction and development < 60 months

 

 

20,142

 

 

 

—

 

 

 

—

 

 

 

20,142

 

 

 

2,825

 

Construction residential real estate < 60 months

 

 

618

 

 

 

—

 

 

 

—

 

 

 

618

 

 

 

134

 

Residential real estate first lien

 

 

195

 

 

 

—

 

 

 

—

 

 

 

195

 

 

 

66

 

Residential real estate all other

 

 

79

 

 

 

—

 

 

 

—

 

 

 

79

 

 

 

81

 

Agriculture

 

 

1,833

 

 

 

401

 

 

 

14

 

 

 

2,248

 

 

 

1,193

 

  Commercial non-real estate

 

 

—

 

 

 

4,140

 

 

 

87

 

 

 

4,227

 

 

 

1,342

 

  Consumer non-real estate

 

 

—

 

 

 

—

 

 

 

236

 

 

 

236

 

 

 

133

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total collateral-dependent loans held for investment

 

$

23,510

 

 

$

4,541

 

 

$

337

 

 

$

28,388

 

 

$

6,024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral Type

 

 

 

 

 

 

 

 

 

Real Estate

 

 

Business Assets

 

 

Other Assets

 

 

Total

 

 

Specific Allocation

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate owner occupied

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Commercial real estate non-owner occupied

 

 

632

 

 

 

—

 

 

 

—

 

 

 

632

 

 

 

250

 

Construction and development < 60 months

 

 

800

 

 

 

—

 

 

 

—

 

 

 

800

 

 

 

225

 

Construction residential real estate < 60 months

 

 

638

 

 

 

—

 

 

 

—

 

 

 

638

 

 

 

134

 

Residential real estate first lien

 

 

189

 

 

 

—

 

 

 

—

 

 

 

189

 

 

 

62

 

Residential real estate all other

 

 

140

 

 

 

—

 

 

 

—

 

 

 

140

 

 

 

140

 

Agriculture

 

 

1,841

 

 

 

593

 

 

 

15

 

 

 

2,449

 

 

 

1,386

 

  Commercial non-real estate

 

 

—

 

 

 

6,090

 

 

 

241

 

 

 

6,331

 

 

 

1,867

 

  Consumer non-real estate

 

 

—

 

 

 

—

 

 

 

147

 

 

 

147

 

 

 

88

 

  Oil and gas

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total collateral-dependent loans held for investment

 

$

4,240

 

 

$

6,683

 

 

$

403

 

 

$

11,326

 

 

$

4,152

 

 

Non-Cash Transfers from Loans and Premises and Equipment

Transfers from loans and premises and equipment to other real estate owned and repossessed assets are non-cash transactions, and are not included in the consolidated statements of cash flow.

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

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

2023

 

 

 

(Dollars in thousands)

 

Other real estate owned

 

$

8,995

 

 

$

667

 

Repossessed assets

 

 

1,575

 

 

 

946

 

Total

 

$

10,570

 

 

$

1,613