Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

The various categories of loans are summarized as follows:


(In thousands)	2022		2021
Consumer:
Credit cards	$	196,928	$	187,052
Other consumer	152,882		168,318
Total consumer	349,810		355,370
Real estate:
Construction and development	2,566,649		1,326,371
Single family residential	2,546,115		2,101,975
Other commercial	7,468,498		5,738,904
Total real estate	12,581,262		9,167,250
Commercial:
Commercial	2,632,290		1,992,043
Agricultural	205,623		168,717
Total commercial	2,837,913		2,160,760
Other	373,139		329,123
Total loans	$	16,142,124	$	12,012,503

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


(In thousands)	2022		2021
Consumer:
Credit cards	$	349	$	377
Other consumer	433		381
Total consumer	782		758
Real estate:
Construction and development	2,799		2,296
Single family residential	22,319		19,268
Other commercial	14,998		26,953
Total real estate	40,116		48,517
Commercial:
Commercial	17,356		18,774
Agricultural	177		152
Total commercial	17,533		18,926
Other	3		3
Total	$	58,434	$	68,204

Schedule of Aging Analysis of Past Due Loans, Excluding Loans Acquired

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
December 31, 2022
Consumer:
Credit cards	$	1,297	$	409	$	1,706	$	195,222	$	196,928	$	225
Other consumer	852		214		1,066		151,816		152,882		—
Total consumer	2,149		623		2,772		347,038		349,810		225
Real estate:
Construction and development	4,677		443		5,120		2,561,529		2,566,649		—
Single family residential	23,625		11,075		34,700		2,511,415		2,546,115		106
Other commercial	2,759		7,100		9,859		7,458,639		7,468,498		—
Total real estate	31,061		18,618		49,679		12,531,583		12,581,262		106
Commercial:
Commercial	5,034		7,575		12,609		2,619,681		2,632,290		176
Agricultural	111		67		178		205,445		205,623		—
Total commercial	5,145		7,642		12,787		2,825,126		2,837,913		176
Other	61		3		64		373,075		373,139		—
Total	$	38,416	$	26,886	$	65,302	$	16,076,822	$	16,142,124	$	507

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

Schedule of 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
December 31, 2022
Real estate:
Single-family residential	24	$	1,849	12	$	1,589	36	$	3,438
Other commercial	—	—		—	—		—	—
Total real estate	24	1,849		12	1,589		36	3,438
Commercial:
Commercial	—	—		1	33		1	33
Total commercial	—	—		1	33		1	33
Total	24	$	1,849	13	$	1,622	37	$	3,471

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 years ended December 31, 2022 and 2021 segregated by class of loans.


						Modification Type
(Dollars in thousands)	Number of Loans	Balance Prior to TDR		Balance at December 31,		Change in Maturity Date		Change in Rate		Financial Impact on Date of Restructure
Year Ended December 31, 2022
Real estate:
Single-family residential	4	$	760	$	730	$	—	$	730	$	—
Other commercial	—	—		—		—		—		—
Total real estate	4	$	760	$	730	$	—	$	730	$	—

Year Ended December 31, 2021
Real estate:
Single-family residential	3	$	274	$	197	$	—	$	197	$	—
Other commercial	1	784		766		—		766		—
Total real estate	4	$	1,058	$	963	$	—	$	963	$	—

Summary of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, as of December 31, 2022, segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2022		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	$	—	$	—	$	—	$	—	$	—	$	—	$	195,222	$	—	$	195,222
30-89 days past due	—		—		—		—		—		—		1,297		—		1,297
90+ days past due	—		—		—		—		—		—		409		—		409
Total consumer - credit cards	—		—		—		—		—		—		196,928		—		196,928
Consumer - other
Delinquency:
Current	86,303		26,339		10,071		3,804		2,671		2,275		20,350		3		$	151,816
30-89 days past due	298		241		135		13		34		119		12		—		852
90+ days past due	121		47		2		1		2		41		—		—		214
Total consumer - other	86,722		26,627		10,208		3,818		2,707		2,435		20,362		3		152,882
Real estate - C&D
Risk rating:
Pass	237,304		68,916		50,912		16,920		13,625		9,611		2,163,776		334		$	2,561,398
Special mention	—		—		—		—		—		41		1,342		—		1,383
Substandard	1,091		116		36		13		31		103		2,478		—		3,868
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	238,395		69,032		50,948		16,933		13,656		9,755		2,167,596		334		2,566,649
Real estate - SF residential
Delinquency:
Current	700,976		411,885		295,365		141,608		192,176		440,931		324,282		4,192		$	2,511,415
30-89 days past due	3,105		3,415		1,290		2,018		3,129		8,626		2,042				23,625
90+ days past due	586		871		885		968		1,017		6,312		436				11,075
Total real estate - SF residential	704,667		416,171		297,540		144,594		196,322		455,869		326,760		4,192		2,546,115
Real estate - other commercial
Risk rating:
Pass	1,917,352		1,482,049		768,630		254,986		179,729		428,027		2,093,379		19,469		7,143,621
Special mention	19,538		32,831		38,821		206		2,261		20,741		104,431		—		218,829
Substandard	24,639		3,399		27,399		2,544		2,026		15,217		30,824		—		106,048
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	1,961,529		1,518,279		834,850		257,736		184,016		463,985		2,228,634		19,469		7,468,498
Commercial
Risk rating:
Pass	595,256		300,650		168,539		41,924		31,329		35,447		1,401,402		24,940		2,599,487
Special mention	199		1,700		11		32		—		927		2,708		80		5,657
Substandard	5,257		2,435		3,328		802		891		1,290		11,337		1,805		27,145
Doubtful and loss	—		—		—		—		—		—		—		1		1
Total commercial	600,712		304,785		171,878		42,758		32,220		37,664		1,415,447		26,826		2,632,290
Commercial - agriculture
Risk rating:
Pass	44,377		22,901		12,044		4,483		1,029		369		119,342		310		204,855
Special mention	8		—		—		—		—		—		—		—		8
Substandard	55		8		78		49		10		—		560		—		760
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	44,440		22,909		12,122		4,532		1,039		369		119,902		310		205,623
Other
Delinquency:
Current	152,086		29,362		8,181		4,742		20,018		25,349		132,384		953		373,075
30-89 days past due	—		—		—		—		—		61		—		—		61
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	152,086		29,362		8,181		4,742		20,018		25,413		132,384		953		373,139
Total	$	3,788,551	$	2,387,165	$	1,385,727	$	475,113	$	449,978	$	995,490	$	6,608,013	$	52,087	$	16,142,124

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

Schedule of the Activity in the 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
December 31, 2022
Construction and development	$	2,156	$	—	$	2,156
Single family residential	—		—		—
Other commercial real estate	65,450		—		65,450
Commercial	—		3,320		3,320
Total	$	67,606	$	3,320	$	70,926

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 years ended December 31, 2022, 2021 and 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
December 31, 2022
Beginning balance, January 1, 2022	$	17,458	$	179,270	$	3,987	$	4,617	$	205,332
Acquisition adjustment for PCD loans	6,433		3,187		—		2		9,622
Provision for credit loss expense	22,412		(34,456)		3,991		2,674		(5,379)
Charge-offs	(14,270)		(4,122)		(3,862)		(1,876)		(24,130)
Recoveries	2,373		6,916		1,024		1,197		11,510
Net charge-offs	(11,897)		2,794		(2,838)		(679)		(12,620)
Ending balance, December 31, 2022	$	34,406	$	150,795	$	5,140	$	6,614	$	196,955


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
December 31, 2021
Beginning balance, January 1, 2021	$	42,093	$	182,868	$	7,472	$	5,617	$	238,050
Acquisition adjustment for PCD loans	3,349		10,101		—		1		13,451
Provision for credit loss expense	(22,031)		(7,918)		(908)		(352)		(31,209)
Charge-offs	(10,613)		(10,691)		(3,625)		(2,053)		(26,982)
Recoveries	4,660		4,910		1,048		1,404		12,022
Net charge-offs	(5,953)		(5,781)		(2,577)		(649)		(14,960)
Ending balance, December 31, 2021	$	17,458	$	179,270	$	3,987	$	4,617	$	205,332

December 31, 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	42,017		42,276		4,288		(6,093)		82,488
Charge-offs	(48,736)		(13,788)		(4,113)		(4,022)		(70,659)
Recoveries	3,216		905		1,014		1,465		6,600
Net charge-offs	(45,520)		(12,883)		(3,099)		(2,557)		(64,059)
Ending balance, December 31, 2020	$	42,093	$	182,868	$	7,472	$	5,617	$	238,050

The components of provision for credit losses for the years ended December 31 were as follows:


(In thousands)	2022		2021		2020
Provision for credit losses related to:
Loans	$	(5,379)	$	(31,209)	$	82,488
Unfunded commitments	19,453		—		(10,000)
Securities - HTM	—		(1,183)		2,546
Securities - AFS	—		(312)		(61)
Total	$	14,074	$	(32,704)	$	74,973

Schedule of Financing Receivable, Purchased With Credit Deterioration

The following table provides a summary of loans purchased 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	(6,433)		(3,187)		—		(2)		(9,622)
Non-credit related discount	(378)		(998)		—		(1)		(1,377)
Fair value of PCD loans	$	1,447	$	62,349	$	—	$	56	$	63,852

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