Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

The various categories of loans are summarized as follows:


	March 31,		December 31,
(In thousands)	2022		2021
Consumer:
Credit cards	$	184,372	$	187,052
Other consumer	180,602		168,318
Total consumer	364,974		355,370
Real Estate:
Construction and development	1,423,445		1,326,371
Single family residential	2,042,978		2,101,975
Other commercial	5,762,567		5,738,904
Total real estate	9,228,990		9,167,250
Commercial:
Commercial	2,016,405		1,992,043
Agricultural	150,465		168,717
Total commercial	2,166,870		2,160,760
Other	267,759		329,123
Total loans	$	12,028,593	$	12,012,503

Nonaccrual Loans

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


	March 31,		December 31,
(In thousands)	2022		2021
Consumer:
Credit cards	$	435	$	377
Other consumer	358		381
Total consumer	793		758
Real estate:
Construction and development	1,746		2,296
Single family residential	20,060		19,268
Other commercial	27,521		26,953
Total real estate	49,327		48,517
Commercial:
Commercial	13,726		18,774
Agricultural	247		152
Total commercial	13,973		18,926
Other	3		3
Total	$	64,096	$	68,204

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
March 31, 2022
Consumer:
Credit cards	$	840	$	362	$	1,202	$	183,170	$	184,372	$	238
Other consumer	1,083		92		1,175		179,427		180,602		—
Total consumer	1,923		454		2,377		362,597		364,974		238
Real estate:
Construction and development	426		118		544		1,422,901		1,423,445		—
Single family residential	18,273		8,546		26,819		2,016,159		2,042,978		—
Other commercial	5,677		11,743		17,420		5,745,147		5,762,567		—
Total real estate	24,376		20,407		44,783		9,184,207		9,228,990		—
Commercial:
Commercial	4,707		8,082		12,789		2,003,616		2,016,405		2
Agricultural	110		199		309		150,156		150,465		—
Total commercial	4,817		8,281		13,098		2,153,772		2,166,870		2
Other	17		3		20		267,739		267,759		—
Total	$	31,133	$	29,145	$	60,278	$	11,968,315	$	12,028,593	$	240


(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, 2021
Consumer:
Credit cards	$	847	$	413	$	1,260	$	185,792	$	187,052	$	247
Other consumer	1,149		130		1,279		167,039		168,318		—
Total consumer	1,996		543		2,539		352,831		355,370		247
Real estate:
Construction and development	114		504		618		1,325,753		1,326,371		—
Single family residential	11,313		9,398		20,711		2,081,264		2,101,975		102
Other commercial	2,474		12,268		14,742		5,724,162		5,738,904		—
Total real estate	13,901		22,170		36,071		9,131,179		9,167,250		102
Commercial:
Commercial	4,812		10,074		14,886		1,977,157		1,992,043		—
Agricultural	13		117		130		168,587		168,717		—
Total commercial	4,825		10,191		15,016		2,145,744		2,160,760		—
Other	—		3		3		329,120		329,123		—
Total	$	20,722	$	32,907	$	53,629	$	11,958,874	$	12,012,503	$	349

Troubled Debt Restructuring

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
March 31, 2022
Real estate:
Single-family residential	23	$	2,238	14	$	1,167	37	$	3,405
Other commercial	1	760		1	46		2	806
Total real estate	24	2,998		15	1,213		39	4,211
Commercial:
Commercial	2	426		2	1,405		4	1,831
Total commercial	2	426		2	1,405		4	1,831
Total	26	$	3,424	17	$	2,618	43	$	6,042


	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
December 31, 2021
Real estate:
Single-family residential	28	$	3,087	14	$	1,196	42	$	4,283
Other commercial	1	766		2	48		3	814
Total real estate	29	3,853		16	1,244		45	5,097
Commercial:
Commercial	2	436		2	1,406		4	1,842
Total commercial	2	436		2	1,406		4	1,842
Total	31	$	4,289	18	$	2,650	49	$	6,939

Loans by Credit Risk Ratings


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022 (YTD)		2021		2020		2019		2018		2017 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	183,170	$	—	$	183,170
30-89 days past due	—		—		—		—		—		—		840		—		840
90+ days past due	—		—		—		—		—		—		362		—		362
Total consumer - credit cards	—		—		—		—		—		—		184,372		—		184,372
Consumer - other
Delinquency:
Current	79,761		43,528		18,213		8,773		5,164		6,467		17,517		4		179,427
30-89 days past due	15		476		122		90		83		245		52		—		1,083
90+ days past due	—		31		7		9		3		42		—		—		92
Total consumer - other	79,776		44,035		18,342		8,872		5,250		6,754		17,569		4		180,602
Real estate - C&D
Risk rating:
Pass	36,921		83,202		84,969		21,988		12,221		10,831		1,166,464		3,694		1,420,290
Special mention	—		—		—		265		—		46		—		—		311
Substandard	1,066		184		52		15		35		123		1,369		—		2,844
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	37,987		83,386		85,021		22,268		12,256		11,000		1,167,833		3,694		1,423,445
Real estate - SF residential
Delinquency:
Current	94,349		432,131		331,902		154,549		217,889		519,907		263,355		2,077		2,016,159
30-89 days past due	52		2,445		3,040		2,010		1,348		8,189		1,189		—		18,273
90+ days past due	141		223		502		775		801		5,517		587		—		8,546
Total real estate - SF residential	94,542		434,799		335,444		157,334		220,038		533,613		265,131		2,077		2,042,978
Real estate - other commercial
Risk rating:
Pass	512,084		1,559,457		917,510		295,515		176,517		579,079		1,317,696		19,730		5,377,588
Special mention	31,411		11,572		51,706		1,241		1,635		9,511		65,879		—		172,955
Substandard	4,895		67,793		49,225		3,416		3,000		30,247		53,448		—		212,024
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	548,390		1,638,822		1,018,441		300,172		181,152		618,837		1,437,023		19,730		5,762,567
Commercial
Risk rating:
Pass	171,244		416,875		204,615		57,498		43,756		75,701		1,002,977		2,848		1,975,514
Special mention	3,718		1,373		1,808		112		12		1,038		3,803		—		11,864
Substandard	451		6,913		4,337		1,540		1,083		2,899		11,603		201		29,027
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	175,413		425,161		210,760		59,150		44,851		79,638		1,018,383		3,049		2,016,405
Commercial - agriculture
Risk rating:
Pass	12,418		31,654		16,797		7,300		2,234		1,987		76,716		1,059		150,165
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		79		—		68		39		1		113		—		300
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	12,418		31,733		16,797		7,368		2,273		1,988		76,829		1,059		150,465
Other
Delinquency:
Current	28		24,198		4,616		1,170		22,241		11,612		203,874		—		267,739
30-89 days past due	—		—		—		17		—		—		—		—		17
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	28		24,198		4,616		1,187		22,241		11,615		203,874		—		267,759
Total	$	948,554	$	2,682,134	$	1,689,421	$	556,351	$	488,061	$	1,263,445	$	4,371,014	$	29,613	$	12,028,593

The following table presents a summary of loans by credit quality indicator, as of December 31, 2021, segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2021		2020		2019		2018		2017		2016 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	185,792	$	—	$	185,792
30-89 days past due	—		—		—		—		—		—		847		—		847
90+ days past due	—		—		—		—		—		—		413		—		413
Total consumer - credit cards	—		—		—		—		—		—		187,052		—		187,052
Consumer - other
Delinquency:
Current	97,830		21,885		11,712		6,756		5,416		3,833		19,607		—		167,039
30-89 days past due	265		121		164		49		219		156		175		—		1,149
90+ days past due	23		23		28		21		13		22		—		—		130
Total consumer - other	98,118		22,029		11,904		6,826		5,648		4,011		19,782		—		168,318
Real estate - C&D
Risk rating:
Pass	74,813		83,729		28,803		17,349		8,505		9,319		1,074,617		20,285		1,317,420
Special mention	—		—		270		—		—		47		—		—		317
Substandard	191		77		16		54		324		423		5,598		1,951		8,634
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	75,004		83,806		29,089		17,403		8,829		9,789		1,080,215		22,236		1,326,371
Real estate - SF residential
Delinquency:
Current	419,605		335,788		185,190		260,037		193,110		421,957		256,155		9,422		2,081,264
30-89 days past due	1,061		883		1,662		791		1,077		4,360		1,479		—		11,313
90+ days past due	27		561		507		1,199		1,358		5,104		570		72		9,398
Total real estate - SF residential	420,693		337,232		187,359		262,027		195,545		431,421		258,204		9,494		2,101,975
Real estate - other commercial
Risk rating:
Pass	1,349,746		807,701		375,824		267,696		476,029		537,493		1,409,099		164,856		5,388,444
Special mention	28,151		30,981		2,799		6,650		39,361		4,801		38,638		1,608		152,989
Substandard	28,137		10,186		5,243		10,806		30,060		27,107		53,860		32,072		197,471
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	1,406,034		848,868		383,866		285,152		545,450		569,401		1,501,597		198,536		5,738,904
Commercial
Risk rating:
Pass	455,499		187,517		80,486		57,437		36,529		57,099		1,004,971		41,885		1,921,423
Special mention	670		2,482		1,066		189		261		2,770		8,500		10,499		26,437
Substandard	3,436		18,381		4,397		1,196		578		850		8,242		7,103		44,183
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	459,605		208,380		85,949		58,822		37,368		60,719		1,021,713		59,487		1,992,043
Commercial - agriculture
Risk rating:
Pass	32,780		20,230		10,253		3,646		2,364		459		98,245		327		168,304
Special mention	—		—		—		—		—		—		—		—		—
Substandard	191		25		27		53		22		3		23		69		413
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	32,971		20,255		10,280		3,699		2,386		462		98,268		396		168,717
Other
Delinquency:
Current	24,247		4,740		1,236		22,438		6,692		5,578		264,189		—		329,120
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	24,247		4,740		1,236		22,438		6,692		5,581		264,189		—		329,123
Total	$	2,516,672	$	1,525,310	$	709,683	$	656,367	$	801,918	$	1,081,384	$	4,431,020	$	290,149	$	12,012,503

Allowance for Credit Loss

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


(In thousands)	Real Estate Collateral		Other Collateral		Total
March 31, 2022
Construction and development	$	1,369	$	—	$	1,369
Single family residential	1,947		—		1,947
Other commercial real estate	87,804		—		87,804
Commercial	—		8,877		8,877
Total	$	91,120	$	8,877	$	99,997

December 31, 2021
Construction and development	$	2,489	$	—	$	2,489
Single family residential	1,838		—		1,838
Other commercial real estate	32,849		—		32,849
Commercial	—		9,913		9,913
Total	$	37,176	$	9,913	$	47,089

The following table details activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2022. 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 March 31, 2022
Beginning balance, January 1, 2022	$	17,458	$	179,270	$	3,987	$	4,617	$	205,332
Provision for credit loss expense	(2,519)		(17,822)		(447)		874		(19,914)
Charge-offs	(6,319)		(485)		(920)		(414)		(8,138)
Recoveries	557		426		274		387		1,644
Net charge-offs	(5,762)		(59)		(646)		(27)		(6,494)
Ending balance, March 31, 2022	$	9,177	$	161,389	$	2,894	$	5,464	$	178,924

Activity in the allowance for credit losses for the three months ended March 31, 2021 was as follows:


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Allowance for credit losses:
Three Months Ended March 31, 2021
Beginning balance, January 1, 2020 - prior to adoption of CECL	$	42,093	$	182,868	$	7,472	$	5,617	$	238,050
Provision for credit loss expense	(6,940)		14,242		(4,587)		(2,715)		—
Charge-offs	(859)		(1,687)		(1,003)		(702)		(4,251)
Recoveries	320		403		290		304		1,317
Net charge-offs	(539)		(1,284)		(713)		(398)		(2,934)
Ending balance, March 31, 2021	$	34,614	$	195,826	$	2,172	$	2,504	$	235,116

The components of the provision for credit losses for the three month periods ended March 31, 2022 and 2021 were as follows:


	Three Months Ended March 31,
(In thousands)	2022		2021
Provision for credit losses related to:
Loans	$	(19,914)	$	—
Unfunded commitments	—		—
Securities - HTM	—		(697)
Securities - AFS	—		2,142
Total	$	(19,914)	$	1,445

Purchased With Credit Deterioration Loans

The following table provides a summary of loans purchased as part of the Landmark acquisition with credit deterioration at acquisition:


(In thousands)	Commercial	Real Estate	Credit Card	Other Consumer and Other	Total
Unpaid principal balance	11,046	55,549	—	67	66,662
PCD allowance for credit loss at acquisition	(350)	(2,008)	—	(1)	(2,359)
Non-credit related discount	(160)	(2,415)	—	(2)	(2,577)
Fair value of PCD loans	10,536	51,126	—	64	61,726

The following table provides a summary of loans purchased as part of the Triumph acquisition with credit deterioration at acquisition:


(In thousands)	Commercial	Real Estate	Credit Card	Other Consumer and Other	Total
Unpaid principal balance	40,466	80,803	—	15	121,284
PCD allowance for credit loss at acquisition	(2,999)	(8,093)	—	—	(11,092)
Non-credit related discount	(279)	(1,314)	—	(1)	(1,594)
Fair value of PCD loans	37,188	71,396	—	14	108,598