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Loans and Allowances for Credit Losses
 9 Months Ended
Sep. 30, 2020
Loans and Leases Receivable, Net Amount [Abstract]  
Loans [Text Block]
Loans

Loans are either secured or unsecured based on the type of loan and the financial condition of the borrower. Repayment is generally expected from cash flow or proceeds from the sale of selected assets of the borrower. BOK Financial is exposed to risk of loss on loans due to the borrower’s difficulties, which may arise from any number of factors, including problems within the respective industry or local economic conditions. Access to collateral, in the event of borrower default, is reasonably assured through adherence to applicable lending laws and through sound lending standards and credit review procedures. Accounting policies for all loans, excluding residential mortgage loans guaranteed by U.S. government agencies, are as follows.

Interest is accrued at the applicable interest rate on the principal amount outstanding. Loans are placed on nonaccruing status when, in the opinion of management, full collection of principal or interest is uncertain. Internally risk graded loans are individually evaluated for nonaccruing status quarterly. Non-risk graded loans are generally placed on nonaccruing status when more than 90 days past due or within 60 days of being notified of the borrower's bankruptcy filing. Interest previously accrued but not collected is charged against interest income when the loan is placed on nonaccruing status. Accrued but not paid interest receivable is included in Receivables in the Consolidated Balance Sheets. Payments on nonaccruing loans are applied to principal or recognized as interest income, according to management’s judgment as to the collectability of principal. Loans may be returned to accruing status when, in the opinion of management, full collection of principal and interest, including principal previously charged off, is probable based on improvements in the borrower’s financial condition or a sustained period of performance.

For loans acquired with no evidence of credit deterioration, discounts are accreted on either an individual basis for loans with unique characteristics or on a pool basis for groups of homogeneous loans. Accretion is discontinued when a loan with an individually attributed discount is placed on nonaccruing status.

Loans to borrowers experiencing financial difficulties may be modified in troubled debt restructurings ("TDRs"). Primarily all TDRs are classified as nonaccruing, excluding loans guaranteed by U.S. government agencies. Modifications generally consist of extension of payment terms or interest rate concessions and may result either voluntarily through negotiations with the borrower or involuntarily through court order. Generally, principal and accrued but unpaid interest is not voluntarily forgiven. In accordance with the guidance provided by the banking agencies on April 7, 2020 concerning loan modifications for customers impacted by the COVID-19 pandemic, short-term (six months or less) payment deferrals made in good faith to borrowers current prior to the relief are not considered TDRs.

Performing loans may be renewed under the current collateral value, debt service ratio and other underwriting standards. Nonaccruing loans may be renewed and will remain classified as nonaccruing. 

Occasionally, loans, other than residential mortgage loans, may be held for sale in order to manage credit concentration. These loans are carried at the lower of cost or fair value with gains or losses recognized in Other gains (losses), net in the Consolidated Statements of Earnings.

All loans are charged off when the loan balance or a portion of the loan balance is no longer supported by the paying capacity of the borrower or when the required cash flow is reduced in a TDR. The charge-off amount is determined through a quarterly evaluation of available cash resources and collateral value and charge-offs are taken in the quarter in which the loss is identified. Non-risk graded loans that are past due between 60 days and 180 days, based on the loan product type, are charged off. Loans to borrowers whose personal obligation has been discharged through Chapter 7 bankruptcy proceedings are charged off within 60 days of notice of the bankruptcy filing, regardless of payment status.

Loan origination and commitment fees and direct loan acquisition and origination costs are deferred and amortized as an adjustment to yield over the life of the loan or over the commitment period, as applicable. Amortization does not anticipate loan prepayments. Net unamortized fees are recognized in full at time of payoff.
Qualifying residential mortgage loans guaranteed by U.S. government agencies have been sold into GNMA pools. Under certain performance conditions specified in government programs, the Company may have the right, but not the obligation to repurchase loans from GNMA pools. These loans no longer qualify for sale accounting and are recognized in the Consolidated Balance Sheets. The carrying value of these loans is reduced based on an estimate of the expected cash flows discounted at the original note rate plus a liquidity spread. Guaranteed loans may be modified in TDRs in accordance with U.S. government agency guidelines. Interest continues to accrue based on the modified rate. Guaranteed loans may either be resold into GNMA pools after a performance period specified by the programs or foreclosed and conveyed to the guarantors.

Loans are disaggregated into portfolio segments and further disaggregated into classes. The portfolio segment is the level at which the Company develops and documents a systematic method for determining its allowance for credit losses. Classes are a further disaggregation of portfolio segments based on the risk characteristics of the loans and the Company’s method for monitoring and assessing credit risk. 

Portfolio segments of the loan portfolio are as follows (in thousands):
 September 30, 2020
Fixed
Rate		Variable
Rate		Non-accrualTotal
Commercial1,424,416 11,971,337 169,953 $13,565,706 
Commercial real estate
1,012,882 3,667,866 12,952 4,693,700 
Paycheck protection program2,097,325 — — 2,097,325 
Loans to individuals2,132,653 1,275,668 38,248 3,446,569 
Total$6,667,276 $16,914,871 $221,153 $23,803,300 


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 September 30, 2020, outstanding commitments totaled $10.4 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 September 30, 2020, outstanding standby letters of credit totaled $678 million. 

Allowances for Credit Losses and Accrual for Off-balance Sheet Credit Risk from Unfunded Loans Commitments

BOK Financial’s accounting policies have changed significantly with the adoption of CECL as of January 1, 2020. Prior periods are not restated. Prior to January 1, 2020, general allowances and nonspecific allowances were based on incurred credit losses in accordance with accounting policies disclosed in Note 1 of the Consolidated Financial Statements included in the 2019 Form 10-K.

The allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments represent the portion of the amortized cost basis of loans that we do not expect to collect over the asset’s contractual life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The appropriateness of the allowance for credit losses, including industry and product adjustments, is assessed quarterly by a senior management Allowance Committee. This review is based on an on-going evaluation of the estimated expected credit losses in the portfolio and on unused commitments to provide financing. A well-documented methodology has been developed and is applied by an independent Credit Administration department to assure consistency across the Company.
The allowance for loan losses consists of specific allowances attributed to certain individual loans, generally nonaccruing loans, with dissimilar risk characteristics that have not yet been charged down to amounts we expect to recover and general allowances for estimated credit losses on pools of loans that share similar risk characteristics.

When full collection of principal or interest is uncertain, the loan’s risk characteristics have changed, and we exclude the loan from the general allowance pool, typically designating it as nonaccruing. For these loans, a specific allowance reflects the expected credit loss.

We measure specific allowances for loans excluded from the general allowance pool by an evaluation of estimated future cash flows discounted at the loans initial effective interest rate or the fair value of collateral for certain collateral dependent loans. For a non-collateral dependent loan, the specific allowance is the amount by which the loan’s amortized cost basis exceeds its net realizable value. We measure the specific allowance for collateral dependent loans as the amount by which the loan’s amortized costs basis exceeds its fair value. When repayment is expected to be provided substantially through the sale of collateral, we deduct estimated selling costs from the collateral’s fair value. Generally, third party appraisals that conform to Uniform Standards of Professional Appraisal Practice serve as the basis for the fair value of real property held as collateral. These appraised values are on an “as-is” basis and generally are not adjusted by the Company. We obtain updated appraisals at least annually or more frequently if market conditions indicate collateral values may have declined. For energy loans, our internal staff of engineers generally determines collateral value of mineral rights based on projected cash flows from proven oil and gas reserves under existing economic and operating conditions. For real property held as collateral for other loans, third party appraisals that conform to Uniform Standards of Professional Appraisal Practice generally serve as the basis for the fair value. These appraised values are on an “as-is” basis and generally are not adjusted by the Company. We obtain updated appraisals at least annually or more frequently if market conditions indicate collateral values may have declined. Our special assets staff generally determines the value of other collateral based on projected liquidation cash flows under current market conditions. We evaluate collateral values and available cash resources quarterly. Historical statistics may be used to estimate specific allowances in limited situations, such as when a collateral dependent loan is removed from the general allowance pool near the end of a reporting period until an appraisal of collateral value is received or a full assessment of future cash flows is completed.

General allowances estimate expected credit losses on pools of loans sharing similar risk characteristics that are expected to occur over the loan’s estimated remaining life. The loan’s estimated remaining life represents the contractual term adjusted for amortization, estimates of prepayments, and borrower-owned extension options. Approximately 90 percent of the committed dollars in the loan portfolio is risk graded loans with general allowance model inputs that include probability of default, loss given default, and exposure at default. Probability of default is based on the migration of loans from performing to nonperforming using historical life of loan analysis periods. Loss given default is based on the aggregate losses incurred, net of estimated recoveries. Exposure at default represents an estimate of the outstanding amount of credit exposure at the time a default may occur.

Charge-off migration is used to calculate the general allowance for the majority of non-risk graded loans to individuals. The expected credit loss on less than 10 percent of the committed dollars in the portfolio is calculated using charge-off migration.

The expected credit loss on approximately 1 percent of the committed dollars in the portfolio is calculated using a non-modeled approach. Specifically, the calculation applies a long-term net charge-off rate to the loan balances, adjusted for the weighted average remaining maturity of each portfolio.
    
In estimating the expected credit losses for general allowances on performing risk-graded loans, each portfolio class is assigned relevant economic loss drivers which best explain variations in portfolio net loss rates. The probability of default estimates for each portfolio class are adjusted for current and forecasted economic conditions. The result is applied to the exposure at default and loss given default to calculate the lifetime expected credit loss estimate. Selection of relevant economic loss drivers is re-evaluated periodically and involves statistical analysis as well as management judgment. The unemployment rate factors significantly in the allowance for loan losses calculation, affecting commercial and loans to individuals segments. Other primary factors impacting the commercial portfolio include BBB corporate spreads, real gross domestic product growth rate, and energy commodity prices. The primary commercial real estate variables are vacancy rate and BBB corporate spreads. In addition to the unemployment rate, the forecast for loans to individuals is tied to home price index. The forecasts may include regional economic factors when localized conditions diverge from national conditions.
An Economic Forecast Committee, consisting of senior management with members largely independent of the allowance process develops a twelve-month forward-looking forecast for the relevant economic loss drivers. Management develops these forecasts based on external data as well as a view of future economic conditions, which may include adjustments for regional conditions. The forecast includes three economic scenarios and probability weights for each scenario. The base forecast represents management's view of the most likely outcome, while the downside forecast reflects reasonably possible worsening economic conditions, and the upside forecast projects reasonably possible improving conditions.

At the end of the one-year reasonable and supportable forecast period, we transition from shorter-term expected losses to long-term loss averages for the loan’s estimated remaining life. The difference between short-term loss forecasts and long-term loss averages is run-off over the reversion horizon, up to three years, depending on the forecasted economic scenarios.

General allowances also consider the estimated impact of factors that are not captured in the modeled results or historical experience. These qualitative adjustments, determined by the Allowance Committee, may increase or decrease the allowance estimated by modeled results. Factors not captured in modeled results or historical experience may include for example, new lines of business, market conditions that have not been previously encountered, observed changes in credit risk that are not yet reflected in macro-economic factors, or economic conditions that impact loss given default assumptions.

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 that are not unconditionally cancelable by the bank. This accrual is included in other liabilities in the Consolidated Balance Sheets. The appropriateness of the accrual is determined in the same manner as the allowance for loan losses, with the added consideration of commitment usage over the remaining life for those loans that the bank can not unconditionally cancel.

A provision for credit losses is charged against or credited to earnings in amounts necessary to maintain an appropriate Allowance for Credit Losses. Recoveries of loans previously charged off are added to the allowance when received.

The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit is summarized as follows (in thousands):
Three Months Ended
September 30, 2020
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:     
Beginning balance$310,422 $68,756 $— $56,419 $— $435,597 
Provision for loan losses2,108 3,118 — 1,383 — 6,609 
Loans charged off(25,319)(413)— (929)— (26,661)
Recoveries of loans previously charged off
3,066 114 — 1,052 — 4,232 
Ending Balance$290,277 $71,575 $— $57,925 — $419,777 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$14,582 $16,419 $— $1,918 $— $32,919 
Provision for off-balance sheet credit risk
(2,618)(2,426)— 94 — (4,950)
Ending Balance$11,964 $13,993 $— $2,012 $— $27,969 
Nine Months Ended
September 30, 2020
 CommercialCommercial Real EstatePaycheck Protection ProgramLoans to IndividualsNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$118,187 $51,805 $— $23,572 $17,195 $210,759 
Transition adjustment33,681 (4,620)— 13,943 (17,195)25,809 
Beginning balance, adjusted151,868 47,185 — 37,515 — 236,568 
Provision for loan losses190,984 25,454 — 20,500 — 236,938 
Loans charged off(56,421)(1,300)— (3,427)— (61,148)
Recoveries3,846 236 — 3,337 — 7,419 
Ending balance$290,277 $71,575 $— $57,925 $— $419,777 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$1,434 $107 $— $44 $— $1,585 
Transition adjustment10,144 11,660 — 1,748 — 23,552 
Beginning balance, adjusted11,578 11,767 — 1,792 — 25,137 
Provision for off-balance sheet credit losses
386 2,226 — 220 — 2,832 
Ending balance$11,964 $13,993 $— $2,012 $— $27,969 

Changes in our reasonable and supportable forecasts of macroeconomic variables, primarily due to the anticipated impact of the on-going COVID-19 pandemic, and other assumptions, resulted in a $12.8 million reduction in the allowance for lending activities during the third quarter of 2020. Changes in the loan portfolio characteristics, including specific impairment and losses, loan balances and risk grading resulted in a $14.5 million increase in the allowance for lending activities.

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at September 30, 2020 is as follows (in thousands):
 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$13,395,753 $271,122 $169,953 $19,155 $13,565,706 $290,277 
Commercial real estate4,680,748 71,035 12,952 540 4,693,700 71,575 
Paycheck protection program2,097,325 — — — 2,097,325 — 
Loans to individuals3,408,321 57,925 38,248 — 3,446,569 57,925 
Total23,582,147 400,082 221,153 19,695 23,803,300 419,777 
Credit Quality Indicators

The Company utilizes risk grading as primary credit quality indicators as it influences the probability of default which is a key attribute in the expected credit losses calculation. Substantially all commercial as well as commercial real estate loans and certain loans to individuals are risk graded based on a quarterly evaluation of the borrowers’ ability to repay the loans. Certain commercial loans and most loans to individuals are small, homogeneous pools that are not risk-graded. The credit quality of these loans is based on past due days in accordance with regulatory guidelines.

We have included in the credit quality indicator “pass” loans that are in compliance with the original terms of the agreement and currently exhibit no factors that cause management to have doubts about the borrowers’ ability to remain in compliance with the original terms of the agreement, which is consistent with the regulatory guideline of “pass.” This also includes past due residential mortgages that are guaranteed by agencies of the U.S. government that continue to accrue interest based on criteria of the guarantors’ programs.

Other loans especially mentioned ("Special Mention") are currently performing in compliance with the original terms of the agreement but may have a potential weakness that deserves management’s close attention, consistent with regulatory guidelines. Non-graded loans 30 to 59 days past due are categorized as Special Mention.

The risk grading process identified certain loans that have a well-defined weakness (for example, 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 remain on accruing status. Non-graded loans 60 to 89 days past due are categorized as Accruing Substandard.

Nonaccruing loans represent loans for which full collection of principal and interest is uncertain. This includes certain loans considered “substandard” and all loans considered “doubtful” by regulatory guidelines. Non-graded loans 90 or more days past due are categorized as Nonaccrual.

Probability of default is lowest for pass graded loans and increases for each credit quality indicator, Special Mention, and Accruing Substandard.

Vintage represents the year of origination, except for revolving loans which are considered in aggregate. Loans that were once revolving but have converted to term loans without additional underwriting appear in a separate vintage column.
The following table summarizes the Company’s loan portfolio at September 30, 2020 by the risk grade categories and vintage (in thousands): 
Origination Year
20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Energy
Pass$57,239 $58,923 $93,066 $7,959 $1,131 $6,716 $2,474,328 $— $2,699,362 
Special Mention— — — — — — 465,643 — 465,643 
Accruing Substandard
295 — 951 — 14,406 — 409,628 — 425,280 
Nonaccrual1,652 6,541 15,496 — — 28,349 74,778 — 126,816 
Total energy
59,186 65,464 109,513 7,959 15,537 35,065 3,424,377 — 3,717,101 
Healthcare
Pass356,834 619,693 625,047 429,314 241,452 749,439 236,118 — 3,257,897 
Special Mention— 27,500 — 3,019 — 13,393 3,255 — 47,167 
Accruing Substandard
— 2,843 1,705 947 143 11,443 — — 17,081 
Nonaccrual— 18 183 — — 2,935 509 — 3,645 
Total healthcare356,834 650,054 626,935 433,280 241,595 777,210 239,882 — 3,325,790 
Services
Pass356,443 445,488 406,761 345,936 380,205 758,036 689,917 651 3,383,437 
Special Mention344 11,778 1,734 597 8,415 5,410 10,043 — 38,321 
Accruing Substandard
94 8,067 27,957 9,662 2,568 15,185 34,717 — 98,250 
Nonaccrual— 3,420 — 13,898 1,147 6,726 626 — 25,817 
Total services356,881 468,753 436,452 370,093 392,335 785,357 735,303 651 3,545,825 
General business
Pass327,729 446,214 342,469 242,267 126,259 229,142 1,145,429 2,766 2,862,275 
Special Mention— 4,335 13,235 7,126 3,876 3,457 4,782 21 36,832 
Accruing Substandard
1,005 15,955 11,316 11,007 7,501 8,526 8,894 4 64,208 
Nonaccrual1,675 3,853 4,865 1,647 787 118 659 71 13,675 
Total general business
330,409 470,357 371,885 262,047 138,423 241,243 1,159,764 2,862 2,976,990 
Total commercial
1,103,310 1,654,628 1,544,785 1,073,379 787,890 1,838,875 5,559,326 3,513 13,565,706 
Commercial real estate:
Pass578,864 1,184,368 1,021,832 517,976 347,920 780,900 207,440 — 4,639,300 
Special Mention— — 261 12,326 2,571 8,903 — — 24,061 
Accruing Substandard
— 8,349 — 4,187 — 4,824 27 — 17,387 
Nonaccrual— — — 232 6,575 6,145 — — 12,952 
Total commercial real estate
578,864 1,192,717 1,022,093 534,721 357,066 800,772 207,467 — 4,693,700 
Origination Year
20202019201820172016PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Paycheck protection program:
Pass2,097,325 — — — — — — — 2,097,325 
Total paycheck protection program2,097,325 — — — — — — — 2,097,325 
Loans to individuals:
Residential mortgage
Pass414,273 166,795 138,524 157,514 178,830 390,803 341,673 26,129 1,814,541 
Special Mention— 47 1,879 20 — 309 527 12 2,794 
Accruing Substandard
— — — — — 39 159 12 210 
Nonaccrual— 43 1,509 735 2,057 24,431 2,066 758 31,599 
Total residential mortgage
414,273 166,885 141,912 158,269 180,887 415,582 344,425 26,911 1,849,144 
Residential mortgage guaranteed by U.S. government agencies
Pass2,385 29,819 29,745 43,690 57,322 214,889 — — 377,850 
Nonaccrual— — 404 — — 5,993 — — 6,397 
Total residential mortgage guaranteed by U.S. government agencies
2,385 29,819 30,149 43,690 57,322 220,882 — — 384,247 
Personal:
Pass182,066 204,478 79,041 104,217 70,812 98,598 471,503 1,498 1,212,213 
Special Mention42 24 11 53 46 45 1 — 222 
Accruing Substandard
— 211 — 265 — — 15 — 491 
Nonaccrual— 17 49 53 59 44 30 — 252 
Total personal
182,108 204,730 79,101 104,588 70,917 98,687 471,549 1,498 1,213,178 
Total loans to individuals
598,766 401,434 251,162 306,547 309,126 735,151 815,974 28,409 3,446,569 
Total loans
$4,378,265 $3,248,779 $2,818,040 $1,914,647 $1,454,082 $3,374,798 $6,582,767 $31,922 $23,803,300 
Nonaccruing Loans

A summary of nonaccruing loans at September 30, 2020 follows (in thousands): 
As of September 30, 2020
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Energy$126,816 $86,793 $40,023 $16,504 
Healthcare3,645 3,645 — — 
Services25,817 20,456 5,361 2,574 
General business13,675 13,177 498 77 
Total commercial169,953 124,071 45,882 19,155 
Commercial real estate12,952 7,584 5,368 540 
Loans to individuals:    
Residential mortgage31,599 31,599 — — 
Residential mortgage guaranteed by U.S. government agencies
6,397 6,397 — — 
Personal252 252 — — 
Total loans to individuals38,248 38,248 — — 
Total$221,153 $169,903 $51,250 $19,695 


Troubled Debt Restructurings

At September 30, 2020 the Company had $184 million in troubled debt restructurings ("TDRs"), of which $143 million were accruing residential mortgage loans guaranteed by U.S. government agencies, $11 million were nonaccruing energy loans with a related specific allowance of $2.0 million and $19 million were nonaccruing residential mortgage loans with no specific allowance necessary. Approximately $65 million of TDRs were performing in accordance with the modified terms.

At December 31, 2019, the Company had $132 million in TDRs, of which $92 million were accruing residential mortgage loans guaranteed by U.S. government agencies. Approximately $57 million of TDRs were performing in accordance with the modified terms.

TDRs generally consist of interest rate concessions, payment stream concessions or a combination of concessions to distressed borrowers. During the three and nine months ended September 30, 2020, $36 million and $76 million of loans were restructured and $6.4 million and $16.1 million of loans designated as TDRs were charged off. During the three and nine months ended September 30, 2019, $6.2 million and $40 million of loans were restructured and $2.5 million and $15.1 million of loans designated as TDRs were charged off.
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, as modified for short-term payment deferral forbearance.

A summary of loans currently performing and past due as of September 30, 2020 is as follows (in thousands):
  Past Due Past Due 90 Days or More and Accruing
 Current30 to 59
Days		60 to 89 Days90 Days
or More		Total
Commercial:    
Energy$3,603,548 $27,064 $— $86,489 $3,717,101 $— 
Healthcare3,316,556 5,419 — 3,815 3,325,790 171 
Services3,521,644 6,503 5,168 12,510 3,545,825 58 
General business2,955,752 14,002 342 6,894 2,976,990 443 
Total commercial13,397,500 52,988 5,510 109,708 13,565,706 672 
Commercial real estate4,673,416 2,029 532 17,723 4,693,700 4,771 
Paycheck protection program2,097,325 — — — 2,097,325 — 
Loans to individuals:    
Residential mortgage1,830,005 8,299 1,128 9,712 1,849,144 2,241 
Residential mortgage guaranteed by U.S. government agencies
172,678 56,264 34,355 120,950 384,247 117,188 
Personal1,212,488 99 520 71 1,213,178 — 
Total loans to individuals3,215,171 64,662 36,003 130,733 3,446,569 119,429 
Total$23,383,412 $119,679 $42,045 $258,164 $23,803,300 $124,872 

Following is disclosure of loans and the combined allowance for loan losses and accrual for off-balance sheet credit losses under the previous incurred loss model.

Portfolio segments of the loan portfolio are as follows (in thousands):
 December 31, 2019
Fixed
Rate		Variable
Rate		Non-accrualTotal
Commercial$3,231,485 $10,684,749 $115,416 $14,031,650 
Commercial real estate
1,056,321 3,349,836 27,626 4,433,783 
Residential mortgage1,652,653 393,897 37,622 2,084,172 
Personal193,903 1,007,192 287 1,201,382 
Total$6,134,362 $15,435,674 $180,951 $21,750,987 
Accruing loans past due (90 days)1
   $7,680 
1Excludes residential mortgage loans guaranteed by agencies of the U.S. government
The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit is summarized as follows (in thousands):
Three Months Ended
September 30, 2019
 CommercialCommercial Real EstateResidential MortgagePersonalNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$106,397 $54,188 $15,724 $9,388 $16,837 $202,534 
Provision for loan losses9,861 102 (253)1,911 918 12,539 
Loans charged off(9,875)— (56)(1,776)— (11,707)
Recoveries260 60 119 627 — 1,066 
Ending balance$106,643 $54,350 $15,534 $10,150 $17,755 $204,432 
Allowance for off-balance sheet credit losses:      
Beginning balance1,742 116 44 1 — $1,903 
Provision for off-balance sheet credit losses
(536)(3)— — — (539)
Ending balance$1,206 $113 $44 $1 $— $1,364 
Total provision for credit losses$9,325 $99 $(253)$1,911 $918 $12,000 

Nine Months Ended
September 30, 2019
 CommercialCommercial Real EstateResidential MortgagePersonalNonspecific AllowanceTotal
Allowance for loan losses:      
Beginning balance$102,226 $60,026 $17,964 $9,473 $17,768 $207,457 
Provision for loan losses34,740 (10,075)(2,660)3,434 (13)25,426 
Loans charged off(31,728)(118)(192)(4,671)— (36,709)
Recoveries1,405 4,517 422 1,914 — 8,258 
Ending balance$106,643 $54,350 $15,534 $10,150 $17,755 $204,432 
Allowance for off-balance sheet credit losses:      
Beginning balance$1,655 $52 $52 $31 $— $1,790 
Provision for off-balance sheet credit losses
(449)61 (8)(30)— (426)
Ending balance$1,206 $113 $44 $1 $— $1,364 
Total provision for credit losses$34,291 $(10,014)$(2,668)$3,404 $(13)$25,000 
The allowance for loan losses and recorded investment of the related loans by portfolio segment for each impairment measurement method at December 31, 2019 is as follows (in thousands):
 Collectively Measured
for Impairment		Individually Measured
for Impairment		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$13,916,234 $100,773 $115,416 $17,414 $14,031,650 $118,187 
Commercial real estate4,406,157 51,805 27,626 — 4,433,783 51,805 
Residential mortgage2,046,550 14,400 37,622 — 2,084,172 14,400 
Personal1,201,095 9,172 287 — 1,201,382 9,172 
Total21,570,036 176,150 180,951 17,414 21,750,987 193,564 
Nonspecific allowance— — — — — 17,195 
Total$21,570,036 $176,150 $180,951 $17,414 $21,750,987 $210,759 

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, 2019 is as follows (in thousands):
 Internally Risk GradedNon-GradedTotal
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$13,997,538 $117,236 $34,112 $951 $14,031,650 $118,187 
Commercial real estate4,433,783 51,805 — — 4,433,783 51,805 
Residential mortgage279,113 3,085 1,805,059 11,315 2,084,172 14,400 
Personal1,116,297 7,003 85,085 2,169 1,201,382 9,172 
Total19,826,731 179,129 1,924,256 14,435 21,750,987 193,564 
Nonspecific allowance— — — — — 17,195 
Total$19,826,731 $179,129 $1,924,256 $14,435 $21,750,987 $210,759 
The following table summarizes the Company’s loan portfolio at December 31, 2019 by the risk grade categories (in thousands): 
 Internally Risk GradedNon-Graded 
Performing
 PassOther Loans Especially MentionedAccruing SubstandardNonaccrualPerformingNonaccrualTotal
Commercial:      
Energy$3,700,406 $117,298 $63,951 $91,722 $— $— $3,973,377 
Services3,050,946 29,943 33,791 7,483 — — 3,122,163 
Wholesale/retail1,749,023 5,281 5,399 1,163 — — 1,760,866 
Manufacturing623,219 18,214 13,883 10,133 — — 665,449 
Healthcare2,995,514 13,117 20,805 4,480 — — 3,033,916 
Public finance
709,868 — — — — — 709,868 
Other commercial and industrial
709,729 4,028 17,744 398 34,075 37 766,011 
Total commercial13,538,705 187,881 155,573 115,379 34,075 37 14,031,650 
Commercial real estate:      
Residential construction and land development
150,529 — — 350 — — 150,879 
Retail743,343 12,067 1,243 18,868 — — 775,521 
Office923,202 5,177 — — — — 928,379 
Multifamily1,257,005 1,604 95 6,858 — — 1,265,562 
Industrial852,539 1,658 1,011 909 — — 856,117 
Other commercial real estate
455,045 1,639 — 641 — — 457,325 
Total commercial real estate
4,381,663 22,145 2,349 27,626 — — 4,433,783 
Residential mortgage:      
Permanent mortgage276,138 78 2,404 493 758,260 19,948 1,057,321 
Permanent mortgage guaranteed by U.S. government agencies
— — — — 191,694 6,100 197,794 
Home equity— — — — 817,976 11,081 829,057 
Total residential mortgage
276,138 78 2,404 493 1,767,930 37,129 2,084,172 
Personal1,116,196 45 — 56 84,853 232 1,201,382 
Total$19,312,702 $210,149 $160,326 $143,554 $1,886,858 $37,398 $21,750,987 
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 generally includes all nonaccruing loans, all loans modified in a TDR and all loans repurchased from GNMA pools.

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

A summary of impaired loans at December 31, 2019 follows (in thousands): 
  Recorded Investment
 Unpaid
Principal
Balance		TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:     
Energy$149,441 $91,722 $44,244 $47,478 $16,854 
Services10,923 7,483 6,301 1,182 240 
Wholesale/retail1,980 1,163 902 261 101 
Manufacturing10,848 10,133 9,914 219 219 
Healthcare13,774 4,480 4,480 — — 
Public finance— — — — — 
Other commercial and industrial8,227 435 435 — — 
Total commercial195,193 115,416 66,276 49,140 17,414 
Commercial real estate:     
Residential construction and land development1,306 350 350 — — 
Retail20,265 18,868 18,868 — — 
Office— — — — — 
Multifamily6,858 6,858 6,858 — — 
Industrial909 909 909 — — 
Other commercial real estate801 641 641 — — 
Total commercial real estate30,139 27,626 27,626 — — 
Residential mortgage:     
Permanent mortgage24,868 20,441 20,441 — — 
Permanent mortgage guaranteed by U.S. government agencies1
204,187 197,794 197,794 — — 
Home equity12,967 11,081 11,081 — — 
Total residential mortgage242,022 229,316 229,316 — — 
Personal360 287 287 — — 
Total$467,714 $372,645 $323,505 $49,140 $17,414 
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, 2019, the majority were accruing based on the guarantee by U.S. government agencies.
A summary of loans currently performing, loans past due and accruing and nonaccrual loans as of December 31, 2019 is as follows (in thousands):
  Past Due 
 Current30 to 59
Days		60 to 89 Days90 Days
or More		NonaccrualTotal
Commercial:    
Energy$3,881,244 $401 $10 $— 91,722 $3,973,377 
Services3,105,621 1,737 523 6,799 7,483 3,122,163 
Wholesale1,758,878 712 113 — 1,163 1,760,866 
Manufacturing654,329 410 190 387 10,133 665,449 
Healthcare3,027,329 2,039 — 68 4,480 3,033,916 
Public finance707,638 2,230 — — — 709,868 
Other commercial and industrial764,390 414 772 — 435 766,011 
Total commercial13,899,429 7,943 1,608 7,254 115,416 14,031,650 
Commercial real estate:
Residential construction and land development
147,379 3,093 — 57 350 150,879 
Retail756,653 — — — 18,868 775,521 
Office928,379 — — — — 928,379 
Multifamily1,258,704 — — — 6,858 1,265,562 
Industrial855,208 — — — 909 856,117 
Other commercial real estate454,253 1,827 250 354 641 457,325 
Total commercial real estate4,400,576 4,920 250 411 27,626 4,433,783 
Residential Mortgage:
Permanent mortgage1,034,716 2,011 153 — 20,441 1,057,321 
Permanent mortgage guaranteed by U.S. government agencies
46,898 24,203 18,187 102,406 6,100 197,794 
Home equity814,325 3,343 308 — 11,081 829,057 
Total residential mortgage1,895,939 29,557 18,648 102,406 37,622 2,084,172 
Personal1,196,362 4,664 54 15 287 1,201,382 
Total$21,392,306 $47,084 $20,560 $110,086 $180,951 $21,750,987