Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

The various categories of loans are summarized as follows:


	March 31,		December 31,
(In thousands)	2023		2022
Consumer:
Credit cards	$	188,590	$	196,928
Other consumer	142,817		152,882
Total consumer	331,407		349,810
Real Estate:
Construction and development	2,777,122		2,566,649
Single family residential	2,589,831		2,546,115
Other commercial	7,520,964		7,468,498
Total real estate	12,887,917		12,581,262
Commercial:
Commercial	2,669,731		2,632,290
Agricultural	220,641		205,623
Total commercial	2,890,372		2,837,913
Other	445,402		373,139
Total loans	$	16,555,098	$	16,142,124

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


	March 31,		December 31,
(In thousands)	2023		2022
Consumer:
Credit cards	$	266	$	349
Other consumer	440		433
Total consumer	706		782
Real estate:
Construction and development	4,783		2,799
Single family residential	23,509		22,319
Other commercial	12,446		14,998
Total real estate	40,738		40,116
Commercial:
Commercial	21,628		17,356
Agricultural	143		177
Total commercial	21,771		17,533
Other	3		3
Total	$	63,218	$	58,434

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
March 31, 2023
Consumer:
Credit cards	$	1,695	$	385	$	2,080	$	186,510	$	188,590	$	301
Other consumer	970		308		1,278		141,539		142,817		—
Total consumer	2,665		693		3,358		328,049		331,407		301
Real estate:
Construction and development	383		4,384		4,767		2,772,355		2,777,122		—
Single family residential	19,220		9,415		28,635		2,561,196		2,589,831		—
Other commercial	3,643		3,709		7,352		7,513,612		7,520,964		—
Total real estate	23,246		17,508		40,754		12,847,163		12,887,917		—
Commercial:
Commercial	10,170		11,248		21,418		2,648,313		2,669,731		136
Agricultural	228		22		250		220,391		220,641		—
Total commercial	10,398		11,270		21,668		2,868,704		2,890,372		136
Other	—		3		3		445,399		445,402		—
Total	$	36,309	$	29,474	$	65,783	$	16,489,315	$	16,555,098	$	437


(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

Schedule of Troubled Debt Restructuring

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


	Accruing TDR Loans			Nonaccrual TDR Loans			Total TDR Loans
(Dollars in thousands)	Number	Balance		Number	Balance		Number	Balance
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

There were no loans restructured as TDRs during the three months ended March 31, 2022.

Summary of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, as of March 31, 2023, segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023 (YTD)		2022		2021		2020		2019		2018 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	186,510	$	—	$	186,510
30-89 days past due	—		—		—		—		—		—		1,695		—		1,695
90+ days past due	—		—		—		—		—		—		385		—		385
Total consumer - credit cards	—		—		—		—		—		—		188,590		—		188,590
Current-period consumer - credit cards gross charge-offs	—		—		—		—		—		—		1,076		—		1,076
Consumer - other
Delinquency:
Current	28,219		58,085		22,060		7,913		3,236		3,480		18,546		—		141,539
30-89 days past due	7		462		186		44		23		16		232		—		970
90+ days past due	—		130		26		29		11		27		85		—		308
Total consumer - other	28,226		58,677		22,272		7,986		3,270		3,523		18,863		—		142,817
Current-period consumer - other gross charge-offs	—		247		75		22		9		69		3		—		425
Real estate - C&D
Risk rating:
Pass	33,762		214,969		60,637		45,992		18,201		28,982		2,354,137		—		2,756,680
Special mention	—		—		—		—		—		—		7,439		—		7,439
Substandard	—		965		125		5		—		2,117		9,791		—		13,003
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	33,762		215,934		60,762		45,997		18,201		31,099		2,371,367		—		2,777,122
Current-period real estate - C&D gross charge-offs	—		1,154		—		—		—		—		—		—		1,154
Real estate - SF residential
Delinquency:
Current	98,604		681,842		396,986		252,806		146,993		650,695		332,539		731		2,561,196
30-89 days past due	—		1,640		3,128		1,408		1,453		9,761		1,830		—		19,220
90+ days past due	—		443		945		788		241		6,518		480		—		9,415
Total real estate - SF residential	98,604		683,925		401,059		255,002		148,687		666,974		334,849		731		2,589,831
Current-period real estate - SF residential gross charge-offs	—		—		—		—		—		50		—		—		50
Real estate - other commercial
Risk rating:
Pass	143,975		1,796,637		1,435,738		596,675		295,324		762,808		2,179,206		—		7,210,363
Special mention	2,986		1,625		35,008		31,519		2,895		38,953		100,567		—		213,553
Substandard	599		7,854		18,781		1,550		4,241		26,317		37,706		—		97,048
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	147,560		1,806,116		1,489,527		629,744		302,460		828,078		2,317,479		—		7,520,964
Current-period real estate - other commercial gross charge-offs	—		—		—		—		—		—		—		—		—


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023 (YTD)		2022		2021		2020		2019		2018 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Commercial
Risk rating:
Pass	127,523		508,776		271,243		128,686		64,237		83,378		1,430,642		363		2,614,848
Special mention	16		12,398		1,066		24		50		1,020		10,589		—		25,163
Substandard	—		6,661		4,847		1,019		1,402		5,632		10,157		—		29,718
Doubtful and loss	—		—		—		—		—		2		—		—		2
Total commercial	127,539		527,835		277,156		129,729		65,689		90,032		1,451,388		363		2,669,731
Current-period commercial - gross charge-offs	—		165		69		47		91		33		5		—		410
Commercial - agriculture
Risk rating:
Pass	19,168		41,497		21,458		8,945		3,852		1,370		124,070		97		220,457
Special mention	—		—		—		—		14		—		—		—		14
Substandard	—		58		8		72		29		3		—		—		170
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	19,168		41,555		21,466		9,017		3,895		1,373		124,070		97		220,641
Current-period commercial - agriculture gross charge-offs	—		—		—		—		—		3		—		—		3
Other
Delinquency:
Current	20,160		151,015		29,183		7,750		4,435		44,220		188,636		—		445,399
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	20,160		151,015		29,183		7,750		4,435		44,223		188,636		—		445,402
Current-period other - gross charge-offs	—		—		—		—		—		—		31		—		31
Total	$	475,019	$	3,485,057	$	2,301,425	$	1,085,225	$	546,637	$	1,665,302	$	6,995,242	$	1,191	$	16,555,098

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

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
March 31, 2023
Construction and development	$	11,226	$	—	$	11,226
Single family residential	7,206		—		7,206
Other commercial real estate	74,779		—		74,779
Commercial	—		8,162		8,162
Total	$	93,211	$	8,162	$	101,373

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

The following table details activity in the allowance for credit losses by portfolio segment for the three months ended March 31, 2023. 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, 2023
Beginning balance, January 1, 2023	$	34,406	$	150,795	$	5,140	$	6,614	$	196,955
Provision for credit loss expense	(4,804)		14,021		2,148		(449)		10,916
Charge-offs	(413)		(1,204)		(1,076)		(456)		(3,149)
Recoveries	1,067		294		234		240		1,835
Net (charge-offs) recoveries	654		(910)		(842)		(216)		(1,314)
Ending balance, March 31, 2023	$	30,256	$	163,906	$	6,446	$	5,949	$	206,557

Activity in the allowance for credit losses for the three months ended March 31, 2022 was as follows:


(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

The components of the provision for credit losses for the three month periods ended March 31, 2023 and 2022 were as follows:


	Three Months Ended March 31,
(In thousands)	2023		2022
Provision for credit losses related to:
Loans	$	10,916	$	(19,914)
Unfunded commitments	—		—
Securities - HTM	500		—
Securities - AFS	12,800		—
Total	$	24,216	$	(19,914)

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