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Loans and Allowances for Credit Losses
 12 Months Ended
Dec. 31, 2012
Loans Receivable, Net [Abstract]  
Loans
(4) Loans and Allowances for Credit Losses

The portfolio segments of the loan portfolio are as follows (in thousands):

 
 
December 31, 2012
 
December 31, 2011
 
 
Fixed
Rate
 
Variable
Rate
 
Non-accrual
 
Total
 
Fixed
Rate
 
Variable
Rate
 
Non-accrual
 
Total
Commercial
 
$
4,158,548

 
$
3,458,897

 
$
24,467

 
$
7,641,912

 
$
3,261,344

 
$
3,224,915

 
$
68,811

 
$
6,555,070

Commercial real estate
 
845,023

 
1,323,350

 
60,626

 
2,228,999

 
896,820

 
1,295,290

 
99,193

 
2,291,303

Residential mortgage
 
1,747,038

 
251,394

 
46,608

 
2,045,040

 
1,646,554

 
298,206

 
29,767

 
1,974,527

Consumer
 
175,412

 
217,384

 
2,709

 
395,505

 
245,711

 
199,617

 
3,515

 
448,843

Total
 
$
6,926,021

 
$
5,251,025

 
$
134,410

 
$
12,311,456

 
$
6,050,429

 
$
5,018,028

 
$
201,286

 
$
11,269,743

Accruing loans past due (90 days)1
 
 

 
 

 
 

 
$
3,925

 
 

 
 

 
 

 
$
2,496

Foregone interest on nonaccrual loans
 
 
 
 
 
 
 
$
8,587

 
 
 
 
 
 
 
$
11,726

1 
Excludes residential mortgage loans guaranteed by agencies of the U.S. government

At December 31, 2012, $5.4 billion or 44% of the total loan portfolio is to businesses and individuals in Oklahoma and $3.9 billion or 32% of our total loan portfolio is to businesses and individuals in Texas. These geographic concentrations subject the loan portfolio to the general economic conditions within these areas. At December 31, 2011, $5.1 billion or 45% of the loan portfolio was to businesses and individuals in Oklahoma and $3.5 billion or 31% of the loan portfolio was to businesses and individuals in Texas.

Commercial

Commercial loans represent loans for working capital, facilities acquisition or expansion, purchases of equipment and other needs of commercial customers primarily located within our geographical footprint. Commercial loans are underwritten individually and represent on-going relationships based on a thorough knowledge of the customer, the customer’s industry and market. While commercial loans are generally secured by the customer’s assets including real property, inventory, accounts receivable, operating equipment, interest in mineral rights and other property and may also include personal guarantees of the owners and related parties, the primary source of repayment of the loans is the on-going cash flow from operations of the customer’s business. Inherent lending risk is centrally monitored on a continuous basis from underwriting throughout the life of the loan for compliance with commercial lending policies.

At December 31, 2012, commercial loans to businesses in Oklahoma totaled $3.1 billion or 40% of the commercial loan portfolio segment and loans to businesses in Texas totaled $2.7 billion or 36% of the commercial loan portfolio segment. The commercial loan portfolio segment is further divided into loan classes. The energy loan class totaled $2.5 billion or 20% of total loans at December 31, 2012, including $2.2 billion of outstanding loans to energy producers. Approximately 55% of committed production loans are secured by properties primarily producing oil and 45% are secured by properties producing natural gas. The services loan class totaled $2.2 billion at December 31, 2012. Approximately $1.2 billion of loans in the services category consist of loans with individual balances of less than $10 million.  Businesses included in the services class include community foundations, gaming, public finance, insurance and heavy equipment dealers.

At December 31, 2011, commercial loans to businesses in Oklahoma totaled $2.8 billion or 43% of the commercial loan portfolio and commercial loans to businesses in Texas totaled $2.2 billion or 34% of our commercial loan portfolio. The energy loan class totaled $2.0 billion and the services loan class totaled $1.8 billion. Approximately $993 million of loans in the services category consisted of loans with individual balances of less than $10 million.
Commercial Real Estate

Commercial real estate loans are for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes primarily within our geographical footprint. We require collateral values in excess of the loan amounts, demonstrated cash flows in excess of expected debt service requirements, equity investment in the project and a portion of the project already sold, leased or permanent financing already secured. The expected cash flows from all significant new or renewed income producing property commitments are stress tested to reflect the risks in varying interest rates, vacancy rates and rental rates. As with commercial loans, inherent lending risks are centrally monitored on a continuous basis from underwriting throughout the life of the loan for compliance with applicable lending policies.

At December 31, 2012, 35% of commercial real estate loans are secured by properties primarily located in the Dallas and Houston areas of Texas. An additional 26% of commercial real estate loans are secured by properties located primarily in the Tulsa and Oklahoma City metropolitan areas of Oklahoma. At December 31, 2011, 36% of commercial real estate loans were secured by properties in Texas and 26% of commercial real estate loans were secured by properties in Oklahoma.

Residential Mortgage and Consumer

Residential mortgage loans provide funds for our customers to purchase or refinance their primary residence or to borrow against the equity in their home. Residential mortgage loans are secured by a first or second mortgage on the customer’s primary residence. Consumer loans include direct loans secured by and for the purchase of automobiles, recreational and marine equipment as well as other unsecured loans. Consumer loans also include indirect automobile loans made through primary dealers. Residential mortgage and consumer loans are made in accordance with underwriting policies we believe to be conservative and are fully documented. Credit scoring is assessed based on significant credit characteristics including credit history, residential and employment stability. Residential mortgage loans retained in the Company’s portfolio are primarily composed of various mortgage programs to support customer relationships including jumbo mortgage loans, non-builder construction loans and special loan programs for high net worth individuals and certain professionals. Jumbo loans may be fixed or variable rate and are fully amortizing. Jumbo loans generally conform to government sponsored entity standards, except that the loan size exceeds maximums required under these standards. These loans generally require a minimum FICO score of 720 and a maximum debt-to-income ratio (“DTI”) of 38%. Loan-to-value (“LTV”) ratios are tiered from 60% to 100%, depending on the market.  Special mortgage programs include fixed and variable fully amortizing loans tailored to the needs of certain healthcare professionals.  Variable rate loans are fully indexed at origination and may have fixed rates for three to ten years, then adjust annually thereafter. 

At December 31, 2012 and 2011, residential mortgage loans included $160 million and $185 million, respectively, of loans guaranteed by U.S. government agencies previously sold into GNMA mortgage pools. These loans either have been repurchased or are eligible to be repurchased by the Company when certain defined delinquency criteria are met. Although payments on these loans generally are past due more than 90 days, interest continues to accrue based on the government guarantee.

Home equity loans totaled $761 million at December 31, 2012 and $632 million at December 31, 2011. At December 31, 2012, 68% of the home equity loan portfolio was comprised of first lien loans and 32% of the home equity portfolio was comprised of junior lien loans. Junior lien loans were distributed 78% to amortizing term loans and 22% to revolving lines of credit. At December 31, 2011, 66% of the home equity portfolio was comprised of first lien loans and 34% of the home equity loan portfolio was comprised on junior lien loans. Junior lien loans were distributed 78% to amortizing term loans and 22% to revolving lines of credit. Home equity loans generally require a minimum FICO score of 700 and a maximum DTI of 40%. The maximum loan amount available for our home equity loan products is generally $400 thousand. Revolving loans have a 5 year revolving period followed by 15 year term of amortizing repayments. Interest-only home equity loans may not be extended for any additional revolving time. All other home equity loans may be extended at management's discretion for an additional 5 year revolving term subject to an update of certain credit information.

Credit Commitments
 
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At December 31, 2012, outstanding commitments totaled $6.6 billion. Because some commitments are expected to expire before being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. BOK Financial uses the same credit policies in making commitments as it does loans.

The amount of collateral obtained, if deemed necessary, is based upon management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Because the credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan commitments, BOK Financial uses the same credit policies in evaluating the creditworthiness of the customer. Additionally, BOK Financial uses the same evaluation process in obtaining collateral on standby letters of credit as it does for loan commitments. The term of these standby letters of credit is defined in each commitment and typically corresponds with the underlying loan commitment. At December 31, 2012, outstanding standby letters of credit totaled $466 million. Commercial letters of credit are used to facilitate customer trade transactions with the drafts being drawn when the underlying transaction is consummated. At December 31, 2012, outstanding commercial letters of credit totaled $7 million.

Allowances for Credit Losses

BOK Financial maintains an allowance for loan losses and an accrual for off-balance sheet credit risk. The accrual for off-balance sheet credit risk is maintained at a level that is appropriate to cover estimated losses associated with credit instruments that are not currently recognized as assets such as loan commitments, standby letters of credit or guarantees. As discussed in greater detail in Note 7, the Company also has separate accruals related to off-balance sheet credit risk related to residential mortgage loans previously sold with full or partial recourse and for residential mortgage loans sold to government sponsored agencies under standard representations and warranties.

The allowance for loan losses consists of specific allowances attributed to impaired loans that have not yet been charged down to amounts we expect to recover, general allowances for unimpaired loans based on estimated loss rates by loan class and nonspecific allowances based on general economic conditions, concentration in loans with large balances and other relevant factors.

The activity in the allowance for loan losses and the accrual for off-balance sheet credit risk related to loan commitments and standby letters of credit for the year ended December 31, 2012 is summarized as follows (in thousands):
 
 
Commercial
 
Commercial Real Estate
 
Residential Mortgage
 
Consumer
 
Nonspecific allowance
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
83,443

 
$
67,034

 
$
46,476

 
$
10,178

 
$
46,350

 
$
253,481

Provision for loan losses
 
(14,950
)
 
(6,214
)
 
3,346

 
5,327

 
(2,163
)
 
(14,654
)
Loans charged off
 
(9,341
)
 
(11,642
)
 
(10,047
)
 
(11,108
)
 
—

 
(42,138
)
Recoveries
 
6,128

1 
5,706

 
1,928

 
5,056

 
—

 
18,818

Ending balance
 
$
65,280

 
$
54,884

 
$
41,703

 
$
9,453

 
$
44,187

 
$
215,507

 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for off-balance sheet credit risk:
 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
7,906

 
$
1,250

 
$
91

 
$
14

 
$
—

 
$
9,261

Provision for off-balance sheet credit risk
 
(7,431
)
 
103

 
(13
)
 
(5
)
 
—

 
(7,346
)
Ending balance
 
$
475

 
$
1,353

 
$
78

 
$
9

 
$
—

 
$
1,915

 
 
 
 
 
 
 
 
 
 
 
 
 
Total provision for credit losses
 
$
(22,381
)
 
$
(6,111
)
 
$
3,333

 
$
5,322

 
$
(2,163
)
 
$
(22,000
)
1 
Includes $7.1 million of negative recovery related to a refund of a settlement between BOK Financial and the City of Tulsa invalidated by the Oklahoma Supreme Court.

The activity in the allowance for loan losses and the accrual for off-balance sheet credit risk related to loan commitments and standby letters of credit for the year ended December 31, 2011 is summarized as follows (in thousands):

 
 
Commercial
 
Commercial Real Estate
 
Residential Mortgage
 
Consumer
 
Nonspecific allowance
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
104,631

 
$
98,709

 
$
50,281

 
$
12,614

 
$
26,736

 
$
292,971

Provision for loan losses
 
(13,830
)
 
(18,482
)
 
7,968

 
3,690

 
19,614

 
(1,040
)
Loans charged off
 
(14,836
)
 
(15,973
)
 
(14,107
)
 
(11,884
)
 
—

 
(56,800
)
Recoveries
 
7,478

 
2,780

 
2,334

 
5,758

 
—

 
18,350

Ending balance
 
$
83,443

 
$
67,034

 
$
46,476

 
$
10,178

 
$
46,350

 
$
253,481

 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for off-balance sheet credit risk:
 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
13,456

 
$
443

 
$
131

 
$
241

 
$
—

 
$
14,271

Provision for off-balance sheet credit risk
 
(5,550
)
 
807

 
(40
)
 
(227
)
 
—

 
(5,010
)
Ending balance
 
$
7,906

 
$
1,250

 
$
91

 
$
14

 
$
—

 
$
9,261

 
 
 
 
 
 
 
 
 
 
 
 
 
Total provision for credit losses
 
$
(19,380
)
 
$
(17,675
)
 
$
7,928

 
$
3,463

 
$
19,614

 
$
(6,050
)

The activity in the allowance for loan losses and the accrual for off-balance sheet credit risk related to loan commitments and standby letters of credit for the year ended December 31, 2010 is summarized as follows (in thousands):

 
 
Commercial
 
Commercial Real Estate
 
Residential Mortgage
 
Consumer
 
Nonspecific allowance
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
121,320

 
$
104,208

 
$
27,863

 
$
20,452

 
$
18,252

 
$
292,095

Provision for loan losses
 
1,688

 
51,284

 
41,573

 
2,227

 
8,484

 
105,256

Loans charged off
 
(27,640
)
 
(59,962
)
 
(20,056
)
 
(16,330
)
 
—

 
(123,988
)
Recoveries
 
9,263

 
3,179

 
901

 
6,265

 
—

 
19,608

Ending balance
 
$
104,631

 
$
98,709

 
$
50,281

 
$
12,614

 
$
26,736

 
$
292,971

 
 
 
 
 
 
 
 
 
 
 
 
 
Accrual for off-balance sheet credit risk:
 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
12,344

 
$
1,404

 
$
222

 
$
418

 
$
—

 
$
14,388

Provision for off-balance sheet credit risk
 
1,112

 
(961
)
 
(91
)
 
(177
)
 
—

 
(117
)
Ending balance
 
$
13,456

 
$
443

 
$
131

 
$
241

 
$
—

 
$
14,271

 
 
 
 
 
 
 
 
 
 
 
 
 
Total provision for credit losses
 
$
2,800

 
$
50,323

 
$
41,482

 
$
2,050

 
$
8,484

 
$
105,139





The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2012 is as follows (in thousands):

 
 
Collectively Measured
for Impairment
 
Individually Measured
for Impairment
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
7,617,445

 
$
65,050

 
$
24,467

 
$
230

 
$
7,641,912

 
$
65,280

Commercial real estate
 
2,168,373

 
51,775

 
60,626

 
3,109

 
2,228,999

 
54,884

Residential mortgage
 
1,998,432

 
40,934

 
46,608

 
769

 
2,045,040

 
41,703

Consumer
 
392,796

 
9,328

 
2,709

 
125

 
395,505

 
9,453

Total
 
12,177,046

 
167,087

 
134,410

 
4,233

 
12,311,456

 
171,320

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
44,187

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
12,177,046

 
$
167,087

 
$
134,410

 
$
4,233

 
$
12,311,456

 
$
215,507



The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2011 is as follows (in thousands):

 
 
Collectively Measured
for Impairment
 
Individually Measured
for Impairment
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
6,486,311

 
$
81,907

 
$
68,759

 
$
1,536

 
$
6,555,070

 
$
83,443

Commercial real estate
 
2,192,110

 
63,092

 
99,193

 
3,942

 
2,291,303

 
67,034

Residential mortgage
 
1,967,086

 
46,178

 
7,441

 
298

 
1,974,527

 
46,476

Consumer
 
447,747

 
10,178

 
1,096

 
—

 
448,843

 
10,178

Total
 
11,093,254

 
201,355

 
176,489

 
5,776

 
11,269,743

 
207,131

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
46,350

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
11,093,254

 
$
201,355

 
$
176,489

 
$
5,776

 
$
11,269,743

 
$
253,481




Credit Quality Indicators

The Company utilizes loan class and risk grading as primary credit quality indicators. Substantially all commercial and commercial real estate loans and certain residential mortgage and consumer loans are risk graded based on a quarterly evaluation of the borrowers’ ability to repay the loans. Certain commercial loans and most residential mortgage and consumer loans are small, homogeneous pools that are not risk graded. 

The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at December 31, 2012 is as follows (in thousands):

 
 
Internally Risk Graded
 
Non-Graded
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
7,624,442

 
$
64,181

 
$
17,470

 
$
1,099

 
$
7,641,912

 
$
65,280

Commercial real estate
 
2,228,999

 
54,884

 
—

 
—

 
2,228,999

 
54,884

Residential mortgage
 
265,503

 
5,270

 
1,779,537

 
36,433

 
2,045,040

 
41,703

Consumer
 
231,376

 
2,987

 
164,129

 
6,466

 
395,505

 
9,453

Total
 
10,350,320

 
127,322

 
1,961,136

 
43,998

 
12,311,456

 
171,320

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
44,187

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
10,350,320

 
$
127,322

 
$
1,961,136

 
$
43,998

 
$
12,311,456

 
$
215,507

 
The allowance for loan losses and recorded investment of the related loans by portfolio segment for risk graded and non-risk graded loans at December 31, 2011 is as follows (in thousands):

 
 
Internally Risk Graded
 
Non-Graded
 
Total
 
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related Allowance
 
Recorded Investment
 
Related
Allowance
Commercial
 
$
6,536,602

 
$
82,263

 
$
18,468

 
$
1,180

 
$
6,555,070

 
$
83,443

Commercial real estate
 
2,291,303

 
67,034

 
—

 
—

 
2,291,303

 
67,034

Residential mortgage
 
317,798

 
8,262

 
1,656,729

 
38,214

 
1,974,527

 
46,476

Consumer
 
217,195

 
2,527

 
231,648

 
7,651

 
448,843

 
10,178

Total
 
9,362,898

 
160,086

 
1,906,845

 
47,045

 
11,269,743

 
207,131

 
 
 
 
 
 
 
 
 
 
 
 
 
Nonspecific allowance
 
—

 
—

 
—

 
—

 
—

 
46,350

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
9,362,898

 
$
160,086

 
$
1,906,845

 
$
47,045

 
$
11,269,743

 
$
253,481



Loans are considered to be performing if they are in compliance with the original terms of the agreement which is consistent with the regulatory guideline of “pass.” Performing also includes loans considered to be “other loans especially mentioned” by regulatory guidelines. Other loans especially mentioned are in compliance with the original terms of the agreement but may have a weakness that deserves management’s close attention. Performing loans also include past due residential mortgages that are guaranteed by agencies of the U.S. government.

The risk grading process identified certain criticized loans as potential problem loans. These loans have a well-defined weakness (e.g. inadequate debt service coverage or liquidity or marginal capitalization; repayment may depend on collateral or other risk mitigation) that may jeopardize liquidation of the debt and represent a greater risk due to deterioration in the financial condition of the borrower. This is consistent with the regulatory guideline for “substandard.” Because the borrowers are still performing in accordance with the original terms of the loan agreements, these loans were not placed in nonaccruing status. Known information does, however, cause concern as to the borrowers’ continued compliance with current repayment terms. Nonaccruing loans represent loans for which full collection of principal and interest in accordance with the original terms of the loan agreements is uncertain. This is substantially the same criteria used to determine whether a loan is impaired and includes certain loans considered “substandard” and all loans considered “doubtful” by regulatory guidelines.

The following table summarizes the Company’s loan portfolio at December 31, 2012 by the risk grade categories (in thousands): 
 
 
Internally Risk Graded
 
Non-Graded
 
 
 
 
Performing
 
Potential Problem
 
Nonaccruing
 
Performing
 
Nonaccruing
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
2,448,954

 
$
9,245

 
$
2,460

 
$
—

 
$
—

 
$
2,460,659

Services
 
2,119,734

 
32,362

 
12,090

 
—

 
—

 
2,164,186

Wholesale/retail
 
1,093,413

 
9,949

 
3,077

 
—

 
—

 
1,106,439

Manufacturing
 
337,132

 
9,345

 
2,007

 
—

 
—

 
348,484

Healthcare
 
1,077,773

 
467

 
3,166

 
—

 
—

 
1,081,406

Integrated food services
 
190,422

 
—

 
684

 
—

 
—

 
191,106

Other commercial and industrial
 
266,329

 
4,914

 
919

 
17,406

 
64

 
289,632

Total commercial
 
7,533,757

 
66,282

 
24,403

 
17,406

 
64

 
7,641,912

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
 
204,010

 
22,952

 
26,131

 
—

 
—

 
253,093

Retail
 
508,342

 
6,327

 
8,117

 
—

 
—

 
522,786

Office
 
405,763

 
15,280

 
6,829

 
—

 
—

 
427,872

Multifamily
 
393,566

 
6,624

 
2,706

 
—

 
—

 
402,896

Industrial
 
241,761

 
265

 
3,968

 
—

 
—

 
245,994

Other commercial real estate
 
351,663

 
11,820

 
12,875

 
—

 
—

 
376,358

Total commercial real estate
 
2,105,105

 
63,268

 
60,626

 
—

 
—

 
2,228,999

 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
242,823

 
10,271

 
12,409

 
831,008

 
27,454

 
1,123,965

Permanent mortgages guaranteed by U.S. government agencies
 
—

 
—

 
—

 
159,955

 
489

 
160,444

Home equity
 
—

 
—

 
—

 
754,375

 
6,256

 
760,631

Total residential mortgage
 
242,823

 
10,271

 
12,409

 
1,745,338

 
34,199

 
2,045,040

 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 

 
 

Indirect automobile
 
—

 
—

 
—

 
33,157

 
1,578

 
34,735

Other consumer
 
229,570

 
1,091

 
715

 
128,978

 
416

 
360,770

Total consumer
 
229,570

 
1,091

 
715

 
162,135

 
1,994

 
395,505

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
10,111,255

 
$
140,912

 
$
98,153

 
$
1,924,879

 
$
36,257

 
$
12,311,456


The following table summarizes the Company’s loan portfolio at December 31, 2011 by the risk grade categories (in thousands): 
 
 
Internally Risk Graded
 
Non-Graded
 
 
 
 
Performing
 
Potential Problem
 
Nonaccruing
 
Performing
 
Nonaccruing
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
2,003,288

 
$
1,417

 
$
336

 
$
—

 
$
—

 
$
2,005,041

Services
 
1,713,232

 
31,338

 
16,968

 
—

 
—

 
1,761,538

Wholesale/retail
 
912,090

 
34,156

 
21,180

 
—

 
—

 
967,426

Manufacturing
 
311,292

 
2,390

 
23,051

 
—

 
—

 
336,733

Healthcare
 
969,260

 
3,414

 
5,486

 
—

 
—

 
978,160

Integrated food services
 
203,555

 
756

 
—

 
—

 
—

 
204,311

Other commercial and industrial
 
281,645

 
10

 
1,738

 
18,416

 
52

 
301,861

Total commercial
 
6,394,362

 
73,481

 
68,759

 
18,416

 
52

 
6,555,070

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
 
252,936

 
27,244

 
61,874

 
—

 
—

 
342,054

Retail
 
499,295

 
3,244

 
6,863

 
—

 
—

 
509,402

Office
 
381,918

 
12,548

 
11,457

 
—

 
—

 
405,923

Multifamily
 
357,436

 
8,079

 
3,513

 
—

 
—

 
369,028

Industrial
 
277,906

 
280

 
—

 
—

 
—

 
278,186

Other commercial real estate
 
355,381

 
15,843

 
15,486

 
—

 
—

 
386,710

Total commercial real estate
 
2,124,872

 
67,238

 
99,193

 
—

 
—

 
2,291,303

 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
294,478

 
15,879

 
7,441

 
821,410

 
17,925

 
1,157,133

Permanent mortgages guaranteed by U.S. government agencies
 
—

 
—

 
—

 
184,973

 
—

 
184,973

Home equity
 
—

 
—

 
—

 
628,020

 
4,401

 
632,421

Total residential mortgage
 
294,478

 
15,879

 
7,441

 
1,634,403

 
22,326

 
1,974,527

 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 

 
 

Indirect automobile
 
—

 
—

 
—

 
102,955

 
2,194

 
105,149

Other consumer
 
212,150

 
3,949

 
1,096

 
126,274

 
225

 
343,694

Total consumer
 
212,150

 
3,949

 
1,096

 
229,229

 
2,419

 
448,843

 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
9,025,862

 
$
160,547

 
$
176,489

 
$
1,882,048

 
$
24,797

 
$
11,269,743





Impaired Loans

Loans are considered to be impaired when it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. This includes all nonaccruing loans, all loans modified in a troubled debt restructuring and all loans repurchased from GNMA pool.
 
A summary of impaired loans follows (in thousands):

 
As of December 31, 2012
 
For the Year Ended
 
 
 
Recorded Investment
 
 
 
December 31, 2012
 
Unpaid
Principal
Balance
 
Total
 
With No
Allowance
 
With Allowance
 
Related Allowance
 
Average Recorded
Investment
 
Interest Income Recognized
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
$
2,460

 
$
2,460

 
$
2,460

 
$
—

 
$
—

 
$
1,398

 
$
—

Services
15,715

 
12,090

 
11,940

 
150

 
149

 
14,529

 
—

Wholesale/retail
9,186

 
3,077

 
3,016

 
61

 
15

 
12,129

 
—

Manufacturing
2,447

 
2,007

 
2,007

 
—

 
—

 
12,529

 
—

Healthcare
4,256

 
3,166

 
2,050

 
1,116

 
66

 
4,326

 
—

Integrated food services
684

 
684

 
684

 
—

 
—

 
342

 
—

Other commercial and industrial
8,482

 
983

 
983

 
—

 
—

 
1,387

 
—

Total commercial
43,230

 
24,467

 
23,140

 
1,327

 
230

 
46,640

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 

 
 

 
 

 
 

 
 

 
 

 
 

Construction and land development
44,721

 
26,131

 
25,575

 
556

 
155

 
44,003

 
—

Retail
9,797

 
8,117

 
8,117

 
—

 
—

 
7,490

 
—

Office
8,949

 
6,829

 
6,604

 
225

 
21

 
9,143

 
—

Multifamily
3,189

 
2,706

 
2,706

 
—

 
—

 
3,110

 
—

Industrial
3,968

 
3,968

 
—

 
3,968

 
2,290

 
1,984

 
—

Other real estate loans
15,377

 
12,875

 
10,049

 
2,826

 
643

 
14,181

 
—

Total commercial real estate
86,001

 
60,626

 
53,051

 
7,575

 
3,109

 
79,911

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 

 
 

 
 

 
 

 
 

 
 

 
 

Permanent mortgage
51,153

 
39,863

 
37,564

 
2,299

 
769

 
32,614

 
1,590

Permanent mortgage guaranteed by U.S. government agencies1
170,740

 
160,444

 
160,444

 
—

 
—

 
173,729

 
6,718

Home equity
6,256

 
6,256

 
6,256

 
—

 
—

 
5,329

 
—

Total residential mortgage
228,149

 
206,563

 
204,264

 
2,299

 
769

 
211,672

 
8,308

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 

 
 

 
 

 
 

 
 

 
 

 
 

Indirect automobile
1,578

 
1,578

 
1,578

 
—

 
—

 
1,886

 
—

Other consumer
1,300

 
1,131

 
1,006

 
125

 
125

 
1,226

 
—

Total consumer
2,878

 
2,709

 
2,584

 
125

 
125

 
3,112

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
$
360,258

 
$
294,365

 
$
283,039

 
$
11,326

 
$
4,233

 
$
341,335

 
$
8,308

1 
All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At December 31, 2012, $489 thousand of these loans are nonaccruing and $160 million are accruing based on the guarantee by U.S. government agencies.

Generally, no interest income is recognized on impaired loans until all principal balances, including amounts charged-off, have been recovered.


 
As of December 31, 2011
 
 
For the Year Ended
 
 
 
 
Recorded Investment
 
 
 
December 31, 2011
 
 
Unpaid
Principal
Balance
 
Total
 
With No
Allowance
 
With Allowance
 
Related Allowance
 
Average Recorded
Investment
 
Interest Income Recognized
Commercial:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
$
336

 
$
336

 
$
336

 
$
—

 
$
—

 
$
401

 
$
—

Services
 
26,916

 
16,968

 
16,200

 
768

 
360

 
18,115

 
—

Wholesale/retail
 
24,432

 
21,180

 
19,702

 
1,478

 
1,102

 
14,833

 
—

Manufacturing
 
26,186

 
23,051

 
23,051

 
—

 
—

 
12,584

 
—

Healthcare
 
6,825

 
5,486

 
5,412

 
74

 
74

 
4,510

 
—

Integrated food services
 
—

 
—

 
—

 
—

 
—

 
7

 
—

Other commercial and industrial
 
9,289

 
1,790

 
1,790

 
—

 
—

 
3,185

 
—

Total commercial
 
93,984

 
68,811

 
66,491

 
2,320

 
1,536

 
53,635

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Construction and land development
 
98,053

 
61,874

 
56,740

 
5,134

 
1,777

 
80,727

 
—

Retail
 
8,645

 
6,863

 
4,373

 
2,490

 
1,062

 
5,921

 
—

Office
 
14,588

 
11,457

 
9,567

 
1,890

 
291

 
15,556

 
—

Multifamily
 
3,512

 
3,513

 
3,513

 
—

 
—

 
5,119

 
—

Industrial
 
—

 
—

 
—

 
—

 
—

 
2,044

 
—

Other real estate loans
 
16,702

 
15,486

 
7,887

 
7,599

 
812

 
15,415

 
—

Total commercial real estate
 
141,500

 
99,193

 
82,080

 
17,113

 
3,942

 
124,782

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Permanent mortgage
 
35,176

 
25,366

 
22,905

 
2,461

 
298

 
28,739

 
527

Permanent mortgage guaranteed by U.S. government agencies1
 
189,567

 
184,973

 
184,973

 
—

 
—

 
116,462

 
6,127

Home equity
 
4,401

 
4,401

 
4,401

 
—

 
—

 
4,858

 
—

Total residential mortgage
 
229,144

 
214,740

 
212,279

 
2,461

 
298

 
150,059

 
6,654

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Indirect automobile
 
2,194

 
2,194

 
2,194

 
—

 
—

 
2,360

 
—

Other consumer
 
1,952

 
1,321

 
1,321

 
—

 
—

 
1,681

 
—

Total consumer
 
4,146

 
3,515

 
3,515

 
—

 
—

 
4,041

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
468,774

 
$
386,259

 
$
364,365

 
$
21,894

 
$
5,776

 
$
332,517

 
$
6,654

1 
All permanent mortgage loans guaranteed by U.S. government agencies are considered impaired as we do not expect full collection of contractual principal and interest. At December 31, 2011, all of these loans are accruing based on the guarantee by U.S. government agencies.




Troubled Debt Restructurings

A summary of troubled debt restructurings ("TDRs") by accruing status as of December 31, 2012 were as follows (in thousands):

 
 
As of
 
 
 
 
December 31, 2012
 
 
 
 
Recorded
Investment
 
Performing in Accordance With Modified Terms
 
Not
Performing in Accordance With Modified Terms
 
Specific
Allowance
 
Amounts Charged-Off During the Year Ended
Dec. 31, 2012
Nonaccruing TDRs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Services
 
2,492

 
2,099

 
393

 
45

 
—

Wholesale/retail
 
2,290

 
1,362

 
928

 
15

 
107

Manufacturing
 
—

 
—

 
—

 
—

 
—

Healthcare
 
64

 
64

 
—

 
—

 
—

Integrated food services
 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
 
675

 
—

 
675

 
—

 
—

Total commercial
 
5,521

 
3,525

 
1,996

 
60

 
107

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

Construction and land development
 
14,898

 
9,989

 
4,909

 
76

 
1,143

Retail
 
6,785

 
5,735

 
1,050

 
—

 
150

Office
 
3,899

 
1,920

 
1,979

 
—

 
269

Multifamily
 
—

 
—

 
—

 
—

 
—

Industrial
 
—

 
—

 
—

 
—

 
—

Other real estate loans
 
5,017

 
3,399

 
1,618

 
—

 
2,182

Total commercial real estate
 
30,599

 
21,043

 
9,556

 
76

 
3,744

 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
20,490

 
12,214

 
8,276

 
54

 
1,476

Home equity
 
—

 
—

 
—

 
—

 
—

Total residential mortgage
 
20,490

 
12,214

 
8,276

 
54

 
1,476

 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 

Indirect automobile
 
—

 
—

 
—

 
—

 
—

Other consumer
 
2,860

 
2,589

 
271

 
83

 
198

Total consumer
 
2,860

 
2,589

 
271

 
83

 
198

 
 
 
 
 
 
 
 
 
 
 
Total nonaccruing TDRs
 
$
59,470

 
$
39,371

 
$
20,099

 
$
273

 
$
5,525

 
 
 
 
 
 
 
 
 
 
 
 
 
As of
 
 
 
 
December 31, 2012
 
 
 
 
Recorded
Investment
 
Performing in Accordance With Modified Terms
 
Not
Performing in Accordance With Modified Terms
 
Specific
Allowance
 
Amounts Charged-Off During the Year Ended
Dec. 31, 2012
Accruing TDRs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 
 
 
 
 
 
 
 
 
Permanent mortgage
 
—

 
—

 
—

 
—

 
—

Permanent mortgages guaranteed by U.S. government agencies
 
38,515

 
8,755

 
29,760

 
—

 
—

Total residential mortgage
 
38,515

 
8,755

 
29,760

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Total accruing TDRs
 
38,515

 
8,755

 
29,760

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Total TDRs
 
$
97,985

 
$
48,126

 
$
49,859

 
$
273

 
$
5,525


A summary of troubled debt restructurings by accruing status as of December 31, 2011 were as follows (in thousands):

 
 
As of
 
 
 
 
December 31, 2011
 
 
 
 
Recorded
Investment
 
Performing in Accordance With Modified Terms
 
Not
Performing in Accordance With Modified Terms
 
Specific
Allowance
 
Amounts Charged-Off During the Year Ended
Dec. 31, 2011
Nonaccruing TDRs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Services
 
3,529

 
1,907

 
1,622

 
—

 
301

Wholesale/retail
 
1,739

 
1,531

 
208

 
24

 
—

Manufacturing
 
—

 
—

 
—

 
—

 
—

Healthcare
 
—

 
—

 
—

 
—

 
—

Integrated food services
 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
 
960

 
—

 
960

 
—

 
—

Total commercial
 
6,228

 
3,438

 
2,790

 
24

 
301

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 
Construction and land development
 
25,890

 
10,310

 
15,580

 
1,577

 
1,104

Retail
 
1,070

 
—

 
1,070

 
—

 
882

Office
 
2,496

 
1,158

 
1,338

 
215

 
527

Multifamily
 
—

 
—

 
—

 
—

 
—

Industrial
 
—

 
—

 
—

 
—

 
—

Other real estate loans
 
8,171

 
2,096

 
6,075

 
662

 
86

Total commercial real estate
 
37,627

 
13,564

 
24,063

 
2,454

 
2,599

 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 
Permanent mortgage
 
6,283

 
3,967

 
2,316

 
282

 
54

Home equity
 
—

 
—

 
—

 
—

 
—

Total residential mortgage
 
6,283

 
3,967

 
2,316

 
282

 
54

 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 
Indirect automobile
 
—

 
—

 
—

 
—

 
—

Other consumer
 
168

 
168

 
—

 
—

 
—

Total consumer
 
168

 
168

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Total nonaccuring TDRs
 
$
50,306

 
$
21,137

 
$
29,169

 
$
2,760

 
$
2,954

 
 
As of
 
 
 
 
December 31, 2011
 
 
 
 
Recorded
Investment
 
Performing in Accordance With Modified Terms
 
Not
Performing in Accordance With Modified Terms
 
Specific
Allowance
 
Amounts Charged-Off During the Year Ended
Dec. 31, 2011
 
 
 
 
 
 
 
 
 
 
 
Accruing TDRs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 
 
 
 
 
 
 
 
 
Permanent mortgage
 
3,917

 
2,445

 
1,472

 
—

 
233

Permanent mortgages guaranteed by U.S. government agencies
 
28,974

 
10,853

 
18,121

 
—

 
—

Total residential mortgage
 
32,891

 
13,298

 
19,593

 
—

 
233

 
 
 
 
 
 
 
 
 
 
 
Total accruing TDRs
 
32,891

 
13,298

 
19,593

 
—

 
233

 
 
 
 
 
 
 
 
 
 
 
Total TDRs
 
$
83,197

 
$
34,435

 
$
48,762

 
$
2,760

 
$
3,187



Troubled debt restructurings generally consist of interest rates concessions, payment stream concessions or a combination of concessions to distressed borrowers. The following table details the recorded balance of loans at December 31, 2012 by class that were restructured during the year ended December 31, 2012 by primary type of concession (in thousands):

 
Year Ended
Dec. 31, 2012
 
Accruing
 
Nonaccrual
 
Total
 
Combination & Other
 
Interest Rate
 
Payment Stream
 
Combination & Other
 
Total
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Energy
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Services
—

 
875

 
—

 
—

 
875

 
875

Wholesale/retail
—

 
885

 
—

 
—

 
885

 
885

Manufacturing
—

 
—

 
—

 
—

 
—

 
—

Healthcare
—

 
—

 
—

 
64

 
64

 
64

Integrated food services
—

 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
—

 
—

 
—

 
—

 
—

 
—

Total commercial
—

 
1,760

 
—

 
64

 
1,824

 
1,824

 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 

 

Construction and land development
—

 
1,219

 
8,359

 
—

 
9,578

 
9,578

Retail
—

 
2,379

 
—

 
—

 
2,379

 
2,379

Office
—

 
1,350

 
570

 
—

 
1,920

 
1,920

Multifamily
—

 
—

 
—

 
—

 
—

 
—

Industrial
—

 
—

 
—

 
—

 
—

 
—

Other real estate loans
—

 
—

 
1,573

 
—

 
1,573

 
1,573

Total commercial real estate
—

 
4,948

 
10,502

 
—

 
15,450

 
15,450

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 
 
 
 
 
 
 
 
 
 
Permanent mortgage
—

 
1,214

 
—

 
2,518

 
3,732

 
3,732

Permanent mortgage guaranteed by U.S. government agencies
17,398

 
—

 
—

 
—

 
—

 
17,398

Home equity
—

 
—

 
—

 
—

 
—

 
—

Total residential mortgage
17,398

 
1,214

 
—

 
2,518

 
3,732

 
21,130

 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
Indirect automobile
—

 
—

 
—

 
—

 
—

 
—

Other consumer
—

 
223

 
—

 
2,508

 
2,731

 
2,731

Total consumer
—

 
223

 
—

 
2,508

 
2,731

 
2,731

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
17,398

 
$
8,145

 
$
10,502

 
$
5,090

 
$
23,737

 
$
41,135


The following table details the recorded balance of loans by class that were restructured during the year ended December 31, 2011 by primary type of concession (in thousands):

 
Year Ended
Dec. 31, 2011
 
Accruing
 
Nonaccrual
 
Total
 
Combination & Other
 
Interest Rate
 
Payment Stream
 
Combination & Other
 
Total
 
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Energy
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Services
—

 
—

 
—

 
868

 
868

 
868

Wholesale/retail
—

 
—

 
—

 
504

 
504

 
504

Manufacturing
—

 
—

 
—

 
—

 
—

 
—

Healthcare
—

 
—

 
—

 
—

 
—

 
—

Integrated food services
—

 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
—

 
—

 
—

 
—

 
—

 
—

Total commercial
—

 
—

 
—

 
1,372

 
1,372

 
1,372

 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
—

 
—

 
—

 
6,123

 
6,123

 
6,123

Retail
—

 
—

 
—

 
—

 
—

 
—

Office
—

 
—

 
—

 
25

 
25

 
25

Multifamily
—

 
—

 
—

 
—

 
—

 
—

Industrial
—

 
—

 
—

 
—

 
—

 
—

Other real estate loans
—

 
—

 
101

 
2,348

 
2,449

 
2,449

Total commercial real estate
—

 
—

 
101

 
8,496

 
8,597

 
8,597

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 
 
 
 
 
 
 
 
 
 
Permanent mortgage
534

 
—

 
—

 
4,025

 
4,025

 
4,559

Permanent mortgage guaranteed by U.S. government agencies
15,490

 
—

 
—

 
146

 
146

 
15,636

Home equity
—

 
—

 
—

 
—

 
—

 
—

Total residential mortgage
16,024

 
—

 
—

 
4,171

 
4,171

 
20,195

 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
Indirect automobile
—

 
—

 
—

 
—

 
—

 
—

Other consumer
—

 
—

 
—

 
168

 
168

 
168

Total consumer
—

 
—

 
—

 
168

 
168

 
168

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
16,024

 
$
—

 
$
101

 
$
14,207

 
$
14,308

 
$
30,332


The following table summarizes, by loan class, the recorded investment at December 31, 2012 and 2011, respectively of loans modified as TDRs within the previous 12 months and for which there was a payment default during the years ended December 31, 2012 and 2011, respectively (in thousands):

 
Year Ended
Dec. 31, 2012
 
Year Ended
Dec. 31, 2011
 
Accruing
 
Nonaccrual
 
Total
 
Accruing
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
 
Energy
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Services
—

 
875

 
875

 
—

 
—

 
—

Wholesale/retail
—

 
885

 
885

 
—

 
473

 
473

Manufacturing
—

 
—

 
—

 
—

 
—

 
—

Healthcare
—

 
—

 
—

 
—

 
—

 
—

Integrated food services
—

 
—

 
—

 
—

 
—

 
—

Other commercial and industrial
—

 
—

 
—

 
—

 
—

 
—

Total commercial
—

 
1,760

 
1,760

 
—

 
473

 
473

 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
—

 
2,000

 
2,000

 
—

 
3,575

 
3,575

Retail
—

 
2,379

 
2,379

 
—

 
—

 
—

Office
—

 
1,350

 
1,350

 
—

 
25

 
25

Multifamily
—

 
—

 
—

 
—

 
—

 
—

Industrial
—

 
—

 
—

 
—

 
—

 
—

Other real estate loans
—

 
—

 
—

 
—

 
668

 
668

Total commercial real estate
—

 
5,729

 
5,729

 
—

 
4,268

 
4,268

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 
 
 
 
 
 
 
 
 
 
Permanent mortgage
—

 
2,692

 
2,692

 
457

 
146

 
603

Permanent mortgage guaranteed by U.S. government agencies
17,251

 
—

 
17,251

 
11,877

 
381

 
12,258

Home equity
—

 
—

 
—

 
—

 
—

 
—

Total residential mortgage
17,251

 
2,692

 
19,943

 
12,334

 
527

 
12,861

 
 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 
 
 
 
 
 
 
 
 
 
Indirect automobile
—

 
—

 
—

 
—

 
—

 
—

Other consumer
—

 
462

 
462

 
—

 
19

 
19

Total consumer
—

 
462

 
462

 
—

 
19

 
19

 
 
 
 
 
 
 
 
 
 
 
 
Total
$
17,251

 
$
10,643

 
$
27,894

 
$
12,334

 
$
5,287

 
$
17,621


A payment default is defined as being 30 days or more past due subsequent to the loan modification. Loans that experienced a payment default during the years ended December 31, 2012 and 2011 above includes loans that were 30 days or more past due at any time during the period, but that are performing in accordance with the modified terms as of the balance sheet date.


Nonaccrual & Past Due Loans

Past due status for all loan classes is based on the actual number of days since the last payment was due according to the contractual terms of the loans.

A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2012 is as follows (in thousands):
 
 
 
 
Past Due
 
 
 
 
 
 
Current
 
30 to 89
Days
 
90 Days
or More
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
2,454,928

 
$
3,071

 
$
200

 
$
2,460

 
$
2,460,659

Services
 
2,150,386

 
1,710

 
—

 
12,090

 
2,164,186

Wholesale/retail
 
1,103,307

 
5

 
50

 
3,077

 
1,106,439

Manufacturing
 
346,442

 
35

 
—

 
2,007

 
348,484

Healthcare
 
1,077,022

 
1,040

 
178

 
3,166

 
1,081,406

Integrated food services
 
190,416

 
6

 
—

 
684

 
191,106

Other commercial and industrial
 
288,522

 
127

 
—

 
983

 
289,632

Total commercial
 
7,611,023

 
5,994

 
428

 
24,467

 
7,641,912

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

Construction and land development
 
226,962

 
—

 
—

 
26,131

 
253,093

Retail
 
514,252

 
349

 
68

 
8,117

 
522,786

Office
 
417,866

 
3,177

 
—

 
6,829

 
427,872

Multifamily
 
400,151

 
39

 
—

 
2,706

 
402,896

Industrial
 
242,026

 
—

 
—

 
3,968

 
245,994

Other real estate loans
 
358,030

 
2,092

 
3,361

 
12,875

 
376,358

Total commercial real estate
 
2,159,287

 
5,657

 
3,429

 
60,626

 
2,228,999

 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
1,075,687

 
8,366

 
49

 
39,863

 
1,123,965

Permanent mortgages guaranteed by U.S. government agencies
 
26,560

 
13,046

 
120,349

 
489

 
160,444

Home equity
 
752,100

 
2,275

 
—

 
6,256

 
760,631

Total residential mortgage
 
1,854,347

 
23,687

 
120,398

 
46,608

 
2,045,040

 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 

Indirect automobile
 
31,869

 
1,273

 
15

 
1,578

 
34,735

Other consumer
 
358,308

 
1,327

 
4

 
1,131

 
360,770

Total consumer
 
390,177

 
2,600

 
19

 
2,709

 
395,505

 
 
 
 
 
 
 
 
 
 
 
Total
 
$
12,014,834

 
$
37,938

 
$
124,274

 
$
134,410

 
$
12,311,456


A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2011 is as follows (in thousands):

 
 
 
 
Past Due
 
 
 
 
 
 
Current
 
30 to 89
Days
 
90 Days
or More
 
Nonaccrual
 
Total
Commercial:
 
 
 
 
 
 
 
 
 
 
Energy
 
$
2,003,192

 
$
1,065

 
$
448

 
$
336

 
$
2,005,041

Services
 
1,729,775

 
13,608

 
1,187

 
16,968

 
1,761,538

Wholesale/retail
 
945,776

 
470

 
—

 
21,180

 
967,426

Manufacturing
 
313,028

 
654

 
—

 
23,051

 
336,733

Healthcare
 
971,265

 
1,362

 
47

 
5,486

 
978,160

Integrated food services
 
204,306

 
—

 
5

 
—

 
204,311

Other commercial and industrial
 
298,105

 
1,966

 
—

 
1,790

 
301,861

Total commercial
 
6,465,447

 
19,125

 
1,687

 
68,811

 
6,555,070

 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 

 
 

 
 

 
 

 
 

Construction and land development
 
278,901

 
1,279

 
—

 
61,874

 
342,054

Retail
 
502,167

 
372

 
—

 
6,863

 
509,402

Office
 
394,227

 
239

 
—

 
11,457

 
405,923

Multifamily
 
365,477

 
38

 
—

 
3,513

 
369,028

Industrial
 
278,186

 
—

 
—

 
—

 
278,186

Other real estate loans
 
367,643

 
3,444

 
137

 
15,486

 
386,710

Total commercial real estate
 
2,186,601

 
5,372

 
137

 
99,193

 
2,291,303

 
 
 
 
 
 
 
 
 
 
 
Residential mortgage:
 
 

 
 

 
 

 
 

 
 

Permanent mortgage
 
1,113,907

 
17,259

 
601

 
25,366

 
1,157,133

Permanent mortgages guaranteed by U.S. government agencies
 
21,568

 
11,868

 
151,537

 
—

 
184,973

Home equity
 
624,942

 
3,036

 
42

 
4,401

 
632,421

Total residential mortgage
 
1,760,417

 
32,163

 
152,180

 
29,767

 
1,974,527

 
 
 
 
 
 
 
 
 
 
 
Consumer:
 
 

 
 

 
 

 
 

 
 

Indirect automobile
 
98,345

 
4,581

 
29

 
2,194

 
105,149

Other consumer
 
340,087

 
2,286

 
—

 
1,321

 
343,694

Total consumer
 
438,432

 
6,867

 
29

 
3,515

 
448,843

 
 
 
 
 
 
 
 
 
 
 
Total
 
$
10,850,897

 
$
63,527

 
$
154,033

 
$
201,286

 
$
11,269,743