Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

The various categories of loans are summarized as follows:


	June 30,		December 31,
(In thousands)	2022		2021
Consumer:
Credit cards	$	189,684	$	187,052
Other consumer	204,692		168,318
Total consumer	394,376		355,370
Real Estate:
Construction and development	2,082,688		1,326,371
Single family residential	2,357,942		2,101,975
Other commercial	7,082,055		5,738,904
Total real estate	11,522,685		9,167,250
Commercial:
Commercial	2,612,256		1,992,043
Agricultural	218,743		168,717
Total commercial	2,830,999		2,160,760
Other	362,284		329,123
Total loans	$	15,110,344	$	12,012,503

Nonaccrual Loans

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


	June 30,		December 31,
(In thousands)	2022		2021
Consumer:
Credit cards	$	325	$	377
Other consumer	334		381
Total consumer	659		758
Real estate:
Construction and development	3,292		2,296
Single family residential	21,046		19,268
Other commercial	20,281		26,953
Total real estate	44,619		48,517
Commercial:
Commercial	17,237		18,774
Agricultural	142		152
Total commercial	17,379		18,926
Other	13		3
Total	$	62,670	$	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
June 30, 2022
Consumer:
Credit cards	$	823	$	282	$	1,105	$	188,579	$	189,684	$	180
Other consumer	786		81		867		203,825		204,692		—
Total consumer	1,609		363		1,972		392,404		394,376		180
Real estate:
Construction and development	578		1,610		2,188		2,080,500		2,082,688		—
Single family residential	12,399		10,590		22,989		2,334,953		2,357,942		552
Other commercial	3,788		14,682		18,470		7,063,585		7,082,055		—
Total real estate	16,765		26,882		43,647		11,479,038		11,522,685		552
Commercial:
Commercial	5,202		8,148		13,350		2,598,906		2,612,256		172
Agricultural	141		44		185		218,558		218,743		—
Total commercial	5,343		8,192		13,535		2,817,464		2,830,999		172
Other	—		13		13		362,271		362,284		—
Total	$	23,717	$	35,450	$	59,167	$	15,051,177	$	15,110,344	$	904


(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
June 30, 2022
Real estate:
Single-family residential	24	$	1,902	13	$	1,122	37	$	3,024
Other commercial	1	753		—	—		1	753
Total real estate	25	2,655		13	1,122		38	3,777
Commercial:
Commercial	—	—		3	1,401		3	1,401
Total commercial	—	—		3	1,401		3	1,401
Total	25	$	2,655	16	$	2,523	41	$	5,178


	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

The following table presents loans that were restructured as TDRs during the three and six month periods ended June 30, 2022 and 2021.



(Dollars in thousands)	Number of loans	Balance Prior to TDR		Balance at June 30,		Change in Maturity Date		Change in Rate		Financial Impact on Date of Restructure
Three and Six Months Ended June 30, 2022
Real estate:
Other commercial	1	$	13	$	13	$	—	$	13	$	—
Total real estate	1	$	13	$	13	$	—	$	13	$	—

Three and Six Months Ended June 30, 2021
Real estate:
Other commercial	1	$	784	$	778	$	—	$	778	$	—
Total real estate	1	$	784	$	778	$	—	$	778	$	—

Loans by Credit Risk Ratings

The following table presents a summary of loans by credit quality indicator, as of June 30, 2022, segregated by class of loans.


	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	$	—	$	—	$	—	$	—	$	—	$	—	$	188,579	$	—	$	188,579
30-89 days past due	—		—		—		—		—		—		823		—		823
90+ days past due	—		—		—		—		—		—		282		—		282
Total consumer - credit cards	—		—		—		—		—		—		189,684		—		189,684
Consumer - other
Delinquency:
Current	113,647		37,547		15,582		7,499		4,689		4,961		19,897		3		203,825
30-89 days past due	121		308		85		59		21		173		19		—		786
90+ days past due	—		17		8		5		4		39		8		—		81
Total consumer - other	113,768		37,872		15,675		7,563		4,714		5,173		19,924		3		204,692
Real estate - C&D
Risk rating:
Pass	141,408		112,131		82,372		28,611		21,030		21,377		1,669,088		346		2,076,363
Special mention	—		—		—		257		—		45		—		—		302
Substandard	1,955		91		12		14		32		151		3,768		—		6,023
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	143,363		112,222		82,384		28,882		21,062		21,573		1,672,856		346		2,082,688
Real estate - SF residential
Delinquency:
Current	345,078		444,223		281,134		173,339		234,911		554,820		296,238		5,210		2,334,953
30-89 days past due	357		1,492		434		2,311		1,533		5,348		924		—		12,399
90+ days past due	—		419		475		607		1,213		6,693		1,183		—		10,590
Total real estate - SF residential	345,435		446,134		282,043		176,257		237,657		566,861		298,345		5,210		2,357,942
Real estate - other commercial
Risk rating:
Pass	1,122,003		1,607,077		704,790		389,165		270,028		870,569		1,726,593		19,805		6,710,030
Special mention	32,585		13,784		34,233		2,815		6,836		30,804		61,082		—		182,139
Substandard	37,988		19,126		15,535		4,606		15,386		47,629		49,616		—		189,886
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	1,192,576		1,639,987		754,558		396,586		292,250		949,002		1,837,291		19,805		7,082,055
Commercial
Risk rating:
Pass	390,270		403,212		193,069		87,732		49,283		75,417		1,336,375		38,411		2,573,769
Special mention	88		1,266		120		70		11		1,022		3,596		—		6,173
Substandard	2,541		4,792		796		1,389		2,334		5,432		14,098		931		32,313
Doubtful and loss	—		—		—		—		—		—		—		1		1
Total commercial	392,899		409,270		193,985		89,191		51,628		81,871		1,354,069		39,343		2,612,256
Commercial - agriculture
Risk rating:
Pass	25,266		27,616		13,144		7,172		1,832		1,942		140,470		558		218,000
Special mention	—		—		—		—		—		—		—		—		—
Substandard	—		58		—		99		55		1		530		—		743
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	25,266		27,674		13,144		7,271		1,887		1,943		141,000		558		218,743
Other
Delinquency:
Current	44,083		31,049		9,005		5,973		23,119		28,484		219,605		953		362,271
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		13		—		—		13
Total other	44,083		31,049		9,005		5,973		23,119		28,497		219,605		953		362,284
Total	$	2,257,390	$	2,704,208	$	1,350,794	$	711,723	$	632,317	$	1,654,920	$	5,732,774	$	66,218	$	15,110,344

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 Loan Losses

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
June 30, 2022
Construction and development	$	2,682	$	—	$	2,682
Single family residential	1,944		—		1,944
Other commercial real estate	84,094		—		84,094
Commercial	—		8,773		8,773
Total	$	88,720	$	8,773	$	97,493

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 and six months ended June 30, 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 June 30, 2022
Beginning balance, April 1, 2022	$	9,177	$	161,389	$	2,894	$	5,464	$	178,924
Acquisition adjustment for PCD loans	854		3,187		—		2		4,043
Provision for credit loss expense	22,853		1,629		4,470		1,454		30,406
Charge-offs	(688)		(124)		(1,004)		(518)		(2,334)
Recoveries	621		400		249		302		1,572
Net charge-offs	(67)		276		(755)		(216)		(762)
Ending balance, June 30, 2022	$	32,817	$	166,481	$	6,609	$	6,704	$	212,611

Six Months Ended June 30, 2022
Beginning balance, January 1, 2022	$	17,458	$	179,270	$	3,987	$	4,617	$	205,332
Acquisition adjustment for PCD loans	854		3,187		—		2		4,043
Provision for credit loss expense	20,334		(16,193)		4,023		2,328		10,492
Charge-offs	(7,007)		(600)		(1,924)		(932)		(10,463)
Recoveries	1,178		817		523		689		3,207
Net charge-offs	(5,829)		217		(1,401)		(243)		(7,256)
Ending balance, June 30, 2022	$	32,817	$	166,481	$	6,609	$	6,704	$	212,611

Activity in the allowance for credit losses for the three and six months ended June 30, 2021 was as follows:


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Allowance for credit losses:
Three Months Ended June 30, 2021
Beginning balance, April 1, 2021	$	34,633	$	195,826	$	2,172	$	2,485	$	235,116
Provision for credit losses	(6,678)		(8,522)		4,072		1,117		(10,011)
Charge-offs	(309)		(439)		(1,046)		(411)		(2,205)
Recoveries	2,147		1,523		244		425		4,339
Net (charge-offs) recoveries	1,838		1,084		(802)		14		2,134
Ending balance, June 30, 2021	$	29,793	$	188,388	$	5,442	$	3,616	$	227,239

Six Months Ended June 30, 2021
Beginning balance, January 1, 2021	$	42,093	$	182,868	$	7,472	$	5,617	$	238,050
Provision for credit loss expense	(13,599)		5,720		(515)		(1,617)		(10,011)
Charge-offs	(1,168)		(2,126)		(2,049)		(1,113)		(6,456)
Recoveries	2,467		1,926		534		729		5,656
Net (charge-offs) recoveries	1,299		(200)		(1,515)		(384)		(800)
Ending balance, June 30, 2021	$	29,793	$	188,388	$	5,442	$	3,616	$	227,239

The components of the provision for credit losses for the three and six month periods ended June 30, 2022 and 2021 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Provision for credit losses related to:
Loans	$	30,406	$	(10,011)	$	10,492	$	(10,011)
Unfunded commitments	3,453		—		3,453		—
Securities - HTM	—		(486)		—		(1,183)
Securities - AFS	—		(2,454)		—		(312)
Total	$	33,859	$	(12,951)	$	13,945	$	(11,506)

Purchased With Credit Deterioration Loans

The following table provides a summary of loans purchased during the fourth quarter of 2021 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 during the fourth quarter of 2021 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

The following table provides a summary of loans purchased during the second quarter of 2022 as part of the Spirit acquisition with credit deterioration at acquisition:


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Unpaid principal balance	$	8,258	$	66,534	$	—	$	59	$	74,851
PCD allowance for credit loss at acquisition	(854)		(3,187)		—		(2)		(4,043)
Non-credit related discount	(378)		(998)		—		(1)		(1,377)
Fair value of PCD loans	$	7,026	$	62,349	$	—	$	56	$	69,431