Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2020

The various categories of loans are summarized as follows:


	September 30,		December 31,
(In thousands)	2020		2019
Consumer:
Credit cards	$	172,880	$	204,802
Other consumer	190,736		249,195
Total consumer	363,616		453,997
Real Estate:
Construction and development	1,853,360		2,248,673
Single family residential	1,997,070		2,414,753
Other commercial	6,132,823		6,358,514
Total real estate	9,983,253		11,021,940
Commercial:
Commercial	2,907,798		2,451,119
Agricultural	241,687		191,525
Total commercial	3,149,485		2,642,644
Other	521,088		307,123
Total loans	$	14,017,442	$	14,425,704

Nonaccrual Loans

The amortized cost basis of nonaccrual loans segregated by class of loans are as follows:


	September 30,		December 31,
(In thousands)	2020		2019
Consumer:
Credit cards	$	253	$	382
Other consumer	1,371		1,705
Total consumer	1,624		2,087
Real estate:
Construction and development	3,806		5,289
Single family residential	31,080		27,695
Other commercial	80,427		16,582
Total real estate	115,313		49,566
Commercial:
Commercial	50,239		40,924
Agricultural	537		753
Total commercial	50,776		41,677
Total	$	167,713	$	93,330

Past Due Loans

An age analysis of the amortized cost basis of past due loans, including nonaccrual loans, segregated by class of loans is as follows:


(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing
September 30, 2020
Consumer:
Credit cards	$	672	$	262	$	934	$	171,946	$	172,880	$	95
Other consumer	2,302		391		2,693		188,043		190,736		6
Total consumer	2,974		653		3,627		359,989		363,616		101
Real estate:
Construction and development	1,168		2,526		3,694		1,849,666		1,853,360		—
Single family residential	12,170		14,522		26,692		1,970,378		1,997,070		64
Other commercial	5,115		11,885		17,000		6,115,823		6,132,823		2
Total real estate	18,453		28,933		47,386		9,935,867		9,983,253		66
Commercial:
Commercial	6,984		5,824		12,808		2,894,990		2,907,798		7
Agricultural	290		328		618		241,069		241,687		—
Total commercial	7,274		6,152		13,426		3,136,059		3,149,485		7
Other	—		—		—		521,088		521,088		—
Total	$	28,701	$	35,738	$	64,439	$	13,953,003	$	14,017,442	$	174


(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing
December 31, 2019
Consumer:
Credit cards	$	848	$	641	$	1,489	$	203,313	$	204,802	$	259
Other consumer	4,884		735		5,619		243,576		249,195		—
Total consumer	5,732		1,376		7,108		446,889		453,997		259
Real estate:
Construction and development	5,792		1,078		6,870		2,241,803		2,248,673		—
Single family residential	26,318		13,789		40,107		2,374,646		2,414,753		597
Other commercial	7,645		6,450		14,095		6,344,419		6,358,514		—
Total real estate	39,755		21,317		61,072		10,960,868		11,021,940		597
Commercial:
Commercial	10,579		13,551		24,130		2,426,989		2,451,119		—
Agricultural	1,223		456		1,679		189,846		191,525		—
Total commercial	11,802		14,007		25,809		2,616,835		2,642,644		—
Other	—		—		—		307,123		307,123		—
Total	$	57,289	$	36,700	$	93,989	$	14,331,715	$	14,425,704	$	856

Impaired Financing Receivables

The following table presents information pertaining to impaired loans as of December 31, 2019, in accordance with previous US GAAP prior to the adoption of ASU 2016-13.


(In thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Investment in Impaired Loans		Interest Income Recognized		Average Investment in Impaired Loans		Interest Income Recognized
December 31, 2019											Three Months Ended September 30, 2019				Nine Months Ended September 30, 2019
Consumer:
Credit cards	$	382	$	382	$	—	$	382	$	—	$	423	$	40	$	370	$	110
Other consumer	1,537		1,378		—		1,378		—		1,603		9		1,730		33
Total consumer	1,919		1,760		—		1,760		—		2,026		49		2,100		143
Real estate:
Construction and development	4,648		4,466		72		4,538		4		1,972		10		1,946		38
Single family residential	19,466		15,139		2,963		18,102		42		15,920		85		14,812		287
Other commercial	10,645		4,713		3,740		8,453		694		11,739		77		10,365		201
Total real estate	34,759		24,318		6,775		31,093		740		29,631		172		27,123		526
Commercial:
Commercial	53,436		6,582		28,998		35,580		5,007		32,020		176		26,379		511
Agricultural	525		383		116		499		—		873		3		1,010		20
Total commercial	53,961		6,965		29,114		36,079		5,007		32,893		179		27,389		531
Total	$	90,639	$	33,043	$	35,889	$	68,932	$	5,747	$	64,550	$	400	$	56,612	$	1,200

Troubled Debt Restructuring

The following table summarizes these modified loans due to COVID-19 by industry.


(Dollars in thousands)	Number	Balance
Real Estate Rental and Leasing	1,162	$	1,263,884
Accommodation and Food Services	386	845,803
Health Care and Social Assistance	226	278,200
Construction	186	190,337
Retail Trade	145	130,498
Other Services (Except Public Administration)	131	58,169
Other	1,720	444,053
Total	3,956	$	3,210,944

The following table presents a summary of TDRs segregated by class of loans.


	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
September 30, 2020
Real estate:
Single-family residential	31	$	2,700	18	$	3,008	49	$	5,708
Other commercial	1	49		1	15		2	64
Total real estate	32	2,749		19	3,023		51	5,772
Commercial:
Commercial	3	630		3	2,154		6	2,784
Total commercial	3	630		3	2,154		6	2,784
Total	35	$	3,379	22	$	5,177	57	$	8,556


	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
December 31, 2019
Real estate:
Construction and development	—	$	—	1	$	72	1	$	72
Single-family residential	25	2,627		20	1,330		45	3,957
Other commercial	1	476		2	80		3	556
Total real estate	26	3,103		23	1,482		49	4,585
Commercial:
Commercial	4	2,784		3	79		7	2,863
Total commercial	4	2,784		3	79		7	2,863
Total	30	$	5,887	26	$	1,561	56	$	7,448

The following table presents loans that were restructured as TDRs during the nine months ended September 30, 2020 and the three and nine months ended September 30, 2019 segregated by class of loans. There were no loans restructured as TDRs during the three months ended September 30, 2020.


(Dollars in thousands)	Number of loans	Balance Prior to TDR		Balance at September 30,		Change in Maturity Date		Change in Rate		Financial Impact on Date of Restructure
Nine Months Ended September 30, 2020
Real estate:
Single-family residential	5	$	1,948	$	1,896	$	1,896	$	—	$	—
Total real estate	5	$	1,948	$	1,896	$	1,896	$	—	$	—

Three and Nine Months Ended September 30, 2019
Real estate:
Single-family residential	1	$	330	$	330	$	330	$	—	$	—
Total real estate	1	$	330	$	330	$	330	$	—	$	—

Loans by Credit Risk Ratings

The following table presents a summary of loans by credit quality indicator, other than pass or current, as of September 30, 2020 segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2020 (YTD)		2019		2018		2017		2016		2015 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
30-89 days past due	$	—	$	—	$	—	$	—	$	—	$	—	$	672	$	—	$	672
90+ days past due	—		—		—		—		—		—		262		—		262
Total consumer - credit cards	—		—		—		—		—		—		934		—		934
Consumer - other
Delinquency:
30-89 days past due	213		404		344		634		505		124		78		—		2,302
90+ days past due	4		55		72		94		48		8		110		—		391
Total consumer - other	217		459		416		728		553		132		188		—		2,693
Real estate - C&D
Risk rating:
5 internal grade	504		357		173		2,171		19		238		4,707		—		8,169
6 internal grade	244		2,127		447		539		366		570		579		—		4,872
7 internal grade	—		—		—		—		—		—		—		—		—
Total real estate - C&D	748		2,484		620		2,710		385		808		5,286		—		13,041
Real estate - SF residential
Delinquency:
30-89 days past due	1,080		1,417		1,602		1,686		1,395		3,365		1,625		—		12,170
90+ days past due	26		2,308		2,873		2,438		918		3,743		2,217		—		14,523
Total real estate - SF residential	1,106		3,725		4,475		4,124		2,313		7,108		3,842		—		26,693
Real estate - other commercial
Risk rating:
5 internal grade	17,230		4,973		24,463		14,997		1,744		10,844		61,045		16,005		151,301
6 internal grade	29,267		9,544		13,940		5,751		15,069		10,114		54,571		48,444		186,700
7 internal grade	—		—		—		—		—				—		—		—
Total real estate - other commercial	46,497		14,517		38,403		20,748		16,813		20,958		115,616		64,449		338,001
Commercial
Risk rating:
5 internal grade	914		1,255		1,662		896		332		14		45,106		569		50,748
6 internal grade	7,062		3,434		19,418		2,407		1,232		1,077		51,387		522		86,539
7 internal grade	—		—		—		—		—		—		—		—		—
Total commercial	7,976		4,689		21,080		3,303		1,564		1,091		96,493		1,091		137,287
Commercial - agriculture
Risk rating:
5 internal grade	35		83		14		325		—		—		34		—		491
6 internal grade	72		140		166		53		42		10		83		—		566
7 internal grade	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	107		223		180		378		42		10		117		—		1,057
Total	$	56,651	$	26,097	$	65,174	$	31,991	$	21,670	$	30,107	$	222,476	$	65,540	$	519,706

The following table presents a summary of loans by credit risk rating as of December 31, 2019 segregated by class of loans.


(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
December 31, 2019
Consumer:
Credit cards	$	204,161	$	—	$	641	$	—	$	—	$	204,802
Other consumer	247,668		—		2,026		—		—		249,694
Total consumer	451,829		—		2,667		—		—		454,496
Real estate:
Construction and development	2,229,019		70		7,735		—		37		2,236,861
Single family residential	2,394,284		6,049		41,601		130		—		2,442,064
Other commercial	6,068,425		69,745		67,429		—		—		6,205,599
Total real estate	10,691,728		75,864		116,765		130		37		10,884,524
Commercial:
Commercial	2,384,263		26,713		84,317		43		180		2,495,516
Agricultural	309,741		41		5,672		—		—		315,454
Total commercial	2,694,004		26,754		89,989		43		180		2,810,970
Other	275,714		—		—		—		—		275,714
Total	$	14,113,275	$	102,618	$	209,421	$	173	$	217	$	14,425,704

Allowance for Loan Losses

The collateral securing these loans consist of commercial real estate properties, residential properties, other business assets, and secured energy production assets.


(In thousands)	Real Estate Collateral		Energy		Other Collateral		Total
Construction and development	$	1,538	$	—	$	—	$	1,538
Single family residential	6,722		—		—		6,722
Other commercial real estate	40,358		—		—		40,358
Commercial	—		19,100		4,009		23,109
Total	$	48,618	$	19,100	$	4,009	$	71,727

The following table details activity in the allowance for credit losses by portfolio segment for loans for the three and nine months ended September 30, 2020. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Allowance for credit losses:
Three Months Ended September 30, 2020
Beginning balance, July 1, 2020	$	59,138	$	149,471	$	10,979	$	12,055	$	231,643
Provision for credit loss expense	(6,499)		33,479		(1,823)		(2,844)		22,313
Charge-offs	(4,327)		(1,153)		(832)		(1,091)		(7,403)
Recoveries	936		120		276		366		1,698
Net charge-offs	(3,391)		(1,033)		(556)		(725)		(5,705)
Ending balance, September 30, 2020	$	49,248	$	181,917	$	8,600	$	8,486	$	248,251


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Nine Months Ended September 30, 2020
Beginning balance, January 1, 2020 - prior to adoption of CECL	$	22,863	$	39,161	$	4,051	$	2,169	$	68,244
Impact of CECL adoption	22,733		114,314		2,232		12,098		151,377
Provision for credit loss expense	42,808		31,341		4,870		(3,829)		75,190
Charge-offs	(40,537)		(3,373)		(3,326)		(3,062)		(50,298)
Recoveries	1,381		474		773		1,110		3,738
Net charge-offs	(39,156)		(2,899)		(2,553)		(1,952)		(46,560)
Ending balance, September 30, 2020	$	49,248	$	181,917	$	8,600	$	8,486	$	248,251

Activity in the allowance for credit losses for the three and nine months ended September 30, 2019 was as follows:


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Allowance for credit losses:
Three Months Ended September 30, 2019
Beginning balance, July 1, 2019	$	21,354	$	36,493	$	3,951	$	2,381	$	64,179
Provision for credit losses	19,150		2,405		946		(528)		21,973
Charge-offs	(17,778)		(1,367)		(1,117)		(1,065)		(21,327)
Recoveries	65		55		223		1,422		1,765
Net (charge-offs) recoveries	(17,713)		(1,312)		(894)		357		(19,562)
Ending balance, September 30, 2019	$	22,791	$	37,586	$	4,003	$	2,210	$	66,590

Nine Months Ended September 30, 2019
Beginning balance, January 1, 2019	$	20,514	$	29,838	$	3,923	$	2,419	$	56,694
Provision for credit losses	23,980		10,393		2,644		1,320		38,337
Charge-offs	(22,893)		(3,000)		(3,298)		(3,582)		(32,773)
Recoveries	1,190		355		734		2,053		4,332
Net charge-offs	(21,703)		(2,645)		(2,564)		(1,529)		(28,441)
Ending balance, September 30, 2019	$	22,791	$	37,586	$	4,003	$	2,210	$	66,590