Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2024

The various categories of loans are summarized as follows:


	September 30,		December 31,
(In thousands)	2024		2023
Consumer:
Credit cards	$	177,696	$	191,204
Other consumer	113,896		127,462
Total consumer	291,592		318,666
Real Estate:
Construction and development	2,796,378		3,144,220
Single family residential	2,724,648		2,641,556
Other commercial	7,992,437		7,552,410
Total real estate	13,513,463		13,338,186
Commercial:
Commercial	2,467,384		2,490,176
Agricultural	314,340		232,710
Total commercial	2,781,724		2,722,886
Other	749,261		465,932
Total loans	$	17,336,040	$	16,845,670

Schedule of Nonaccrual Loans, Excluding Loans Acquired

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


	September 30,		December 31,
(In thousands)	2024		2023
Consumer:
Credit cards	$	563	$	487
Other consumer	455		589
Total consumer	1,018		1,076
Real estate:
Construction and development	5,497		2,457
Single family residential	31,072		27,209
Other commercial	27,018		11,960
Total real estate	63,587		41,626
Commercial:
Commercial	35,648		39,886
Agricultural	609		734
Total commercial	36,257		40,620
Other	3		3
Total	$	100,865	$	83,325

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
September 30, 2024
Consumer:
Credit cards	$	1,535	$	706	$	2,241	$	175,455	$	177,696	$	561
Other consumer	1,102		204		1,306		112,590		113,896		—
Total consumer	2,637		910		3,547		288,045		291,592		561
Real estate:
Construction and development	4,338		1,438		5,776		2,790,602		2,796,378		—
Single family residential	15,647		15,616		31,263		2,693,385		2,724,648		69
Other commercial	12,161		21,959		34,120		7,958,317		7,992,437		86
Total real estate	32,146		39,013		71,159		13,442,304		13,513,463		155
Commercial:
Commercial	12,407		24,566		36,973		2,430,411		2,467,384		114
Agricultural	6		534		540		313,800		314,340		—
Total commercial	12,413		25,100		37,513		2,744,211		2,781,724		114
Other	277		3		280		748,981		749,261		—
Total	$	47,473	$	65,026	$	112,499	$	17,223,541	$	17,336,040	$	830

December 31, 2023
Consumer:
Credit cards	$	1,734	$	892	$	2,626	$	188,578	$	191,204	$	791
Other consumer	1,471		216		1,687		125,775		127,462		—
Total consumer	3,205		1,108		4,313		314,353		318,666		791
Real estate:
Construction and development	3,171		2,190		5,361		3,138,859		3,144,220		—
Single family residential	30,697		12,522		43,219		2,598,337		2,641,556		7
Other commercial	4,702		3,612		8,314		7,544,096		7,552,410		—
Total real estate	38,570		18,324		56,894		13,281,292		13,338,186		7
Commercial:
Commercial	13,799		22,750		36,549		2,453,627		2,490,176		349
Agricultural	92		516		608		232,102		232,710		—
Total commercial	13,891		23,266		37,157		2,685,729		2,722,886		349
Other	—		3		3		465,929		465,932		—
Total	$	55,666	$	42,701	$	98,367	$	16,747,303	$	16,845,670	$	1,147

Schedule of Loans by Credit Risk Rating

The following table presents a summary of loans by credit quality indicator, as of September 30, 2024, segregated by class of loans.


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2024 (YTD)		2023		2022		2021		2020		2019 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Consumer - credit cards
Delinquency:
Current	$	—	$	—	$	—	$	—	$	—	$	—	$	175,455	$	—	$	175,455
30-89 days past due	—		—		—		—		—		—		1,535		—		1,535
90+ days past due	—		—		—		—		—		—		706		—		706
Total consumer - credit cards	—		—		—		—		—		—		177,696		—		177,696
Current-period consumer - credit cards gross charge-offs	—		—		—		—		—		—		4,808		—		4,808
Consumer - other
Delinquency:
Current	41,396		21,390		21,556		6,121		1,662		1,142		19,323		—		112,590
30-89 days past due	182		84		605		35		50		60		86		—		1,102
90+ days past due	15		66		44		20		1		—		58		—		204
Total consumer - other	41,593		21,540		22,205		6,176		1,713		1,202		19,467		—		113,896
Current-period consumer - other gross charge-offs	89		567		446		94		9		6		175		—		1,386
Real estate - C&D
Risk rating:
Pass	38,923		122,586		71,963		32,303		18,737		24,537		2,474,525		—		2,783,574
Special mention	—		—		65		—		—		381		2,790		—		3,236
Substandard	59		69		26		3,957		—		99		5,358		—		9,568
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	38,982		122,655		72,054		36,260		18,737		25,017		2,482,673		—		2,796,378
Current-period real estate - C&D gross charge-offs	—		—		—		—		—		—		52		—		52
Real estate - SF residential
Delinquency:
Current	198,979		338,458		578,282		326,621		196,334		588,250		466,461		—		2,693,385
30-89 days past due	904		1,406		3,259		680		479		6,253		2,666		—		15,647
90+ days past due	—		299		4,490		1,945		1,124		3,622		4,136		—		15,616
Total real estate - SF residential	199,883		340,163		586,031		329,246		197,937		598,125		473,263		—		2,724,648
Current-period real estate - SF residential gross charge-offs	3		46		136		—		1		69		56		—		311
Real estate - other commercial
Risk rating:
Pass	429,871		512,184		1,582,389		1,107,417		461,159		705,341		2,762,717		—		7,561,078
Special mention	9,489		16,352		14,682		18,191		1,480		14,658		99,584		—		174,436
Substandard	7,465		17,184		24,623		6,810		12,058		35,403		153,380		—		256,923
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - other commercial	446,825		545,720		1,621,694		1,132,418		474,697		755,402		3,015,681		—		7,992,437
Current-period real estate - other commercial gross charge-offs	—		2,592		—		15		—		1		168		—		2,776


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2024 (YTD)		2023		2022		2021		2020		2019 and Prior		Lines of Credit (“LOC”) Amortized Cost Basis		LOC Converted to Term Loans Amortized Cost Basis		Total
Commercial
Risk rating:
Pass	187,831		307,100		274,746		138,826		33,779		68,645		1,380,054		—		2,390,981
Special mention	124		27		563		420		137		1,274		11,477		—		14,022
Substandard	1,203		2,266		16,847		3,602		3,389		6,448		28,626		—		62,381
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	189,158		309,393		292,156		142,848		37,305		76,367		1,420,157		—		2,467,384
Current-period commercial - gross charge-offs	159		487		3,466		3,025		494		1,521		10,682		—		19,834
Commercial - agriculture
Risk rating:
Pass	24,611		25,131		22,533		9,561		3,078		1,887		224,796		—		311,597
Special mention	1,238		—		—		—		—		—		511		—		1,749
Substandard	—		15		33		—		154		14		778		—		994
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	25,849		25,146		22,566		9,561		3,232		1,901		226,085		—		314,340
Current-period commercial - agriculture gross charge-offs	—		222		—		8		6		—		1		—		237
Other
Delinquency:
Current	35,103		36,091		140,685		27,563		1,564		31,530		476,445		—		748,981
30-89 days past due	—		277		—		—		—		—		—		—		277
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	35,103		36,368		140,685		27,563		1,564		31,533		476,445		—		749,261
Current-period other - gross charge-offs	—		—		—		—		—		—		420		—		420
Total	$	977,393	$	1,400,985	$	2,757,391	$	1,684,072	$	735,185	$	1,489,547	$	8,291,467	$	—	$	17,336,040

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


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023		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	$	—	$	—	$	—	$	—	$	—	$	—	$	188,578	$	—	$	188,578
30-89 days past due	—		—		—		—		—		—		1,734		—		1,734
90+ days past due	—		—		—		—		—		—		892		—		892
Total consumer - credit cards	—		—		—		—		—		—		191,204		—		191,204
Current-period consumer - credit cards gross charge-offs	—		—		—		—		—		—		5,303		—		5,303
Consumer - other
Delinquency:
Current	55,091		35,904		12,115		3,838		1,471		1,106		16,250		—		125,775
30-89 days past due	400		719		127		53		2		16		154		—		1,471
90+ days past due	35		127		46		—		—		—		8		—		216
Total consumer - other	55,526		36,750		12,288		3,891		1,473		1,122		16,412		—		127,462
Current-period consumer - other gross charge-offs	220		826		493		79		29		128		449		—		2,224
Real estate - C&D
Risk rating:
Pass	138,749		143,711		52,081		45,027		10,278		13,632		2,710,853		504		3,114,835
Special mention	—		1,143		7,284		—		—		396		16,682		—		25,505
Substandard	—		101		48		—		—		247		3,484		—		3,880
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total real estate - C&D	138,749		144,955		59,413		45,027		10,278		14,275		2,731,019		504		3,144,220
Current-period real estate - C&D gross charge-offs	—		1,148		—		—		—		8		349		—		1,505
Real estate - SF residential
Delinquency:
Current	371,326		620,933		352,589		238,128		121,416		504,675		388,705		565		2,598,337
30-89 days past due	5,222		5,061		3,667		2,283		1,741		9,759		2,964		—		30,697
90+ days past due	1,313		2,443		1,810		1,661		120		3,465		1,710		—		12,522
Total real estate - SF residential	377,861		628,437		358,066		242,072		123,277		517,899		393,379		565		2,641,556
Current-period real estate - SF residential gross charge-offs	—		111		12		73		—		677		232		—		1,105
Real estate - other commercial
Risk rating:
Pass	729,602		1,651,010		1,237,810		621,595		171,230		417,122		2,333,637		—		7,162,006
Special mention	37,302		8,458		10,149		7,844		1,364		11,604		84,978		—		161,699
Substandard	40,664		10,290		4,495		16,646		6,293		9,861		140,454		—		228,703
Doubtful and loss	—		—		—		2		—		—		—		—		2
Total real estate - other commercial	807,568		1,669,758		1,252,454		646,087		178,887		438,587		2,559,069		—		7,552,410
Current-period real estate - other commercial gross charge-offs	—		—		—		7		2		35		9,731		—		9,775


	Term Loans Amortized Cost Basis by Origination Year
(In thousands)	2023		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	440,872		354,016		200,941		67,320		27,374		42,953		1,271,826		—		2,405,302
Special mention	157		14,117		316		367		98		889		8,228		—		24,172
Substandard	1,998		11,874		6,272		2,934		1,722		3,392		32,510		—		60,702
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial	443,027		380,007		207,529		70,621		29,194		47,234		1,312,564		—		2,490,176
Current-period commercial - gross charge-offs	463		2,081		778		197		244		815		1,351		—		5,929
Commercial - agriculture
Risk rating:
Pass	39,680		30,075		13,940		6,280		2,071		303		134,180		—		226,529
Special mention	363		733		1,068		—		—		—		3,257		—		5,421
Substandard	518		37		71		104		26		—		4		—		760
Doubtful and loss	—		—		—		—		—		—		—		—		—
Total commercial - agriculture	40,561		30,845		15,079		6,384		2,097		303		137,441		—		232,710
Current-period commercial - agriculture gross charge-offs	—		7		—		—		—		26		—		—		33
Other
Delinquency:
Current	45,234		144,732		28,413		2,543		3,255		36,719		205,033		—		465,929
30-89 days past due	—		—		—		—		—		—		—		—		—
90+ days past due	—		—		—		—		—		3		—		—		3
Total other	45,234		144,732		28,413		2,543		3,255		36,722		205,033		—		465,932
Current-period other - gross charge-offs	—		—		—		—		—		—		298		—		298
Total	$	1,908,526	$	3,035,484	$	1,933,242	$	1,016,625	$	348,461	$	1,056,142	$	7,546,121	$	1,069	$	16,845,670

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
September 30, 2024
Construction and development	$	903	$	—	$	903
Single family residential	—		—		—
Other commercial real estate	80,591		—		80,591
Commercial	—		28,154		28,154
Total	$	81,494	$	28,154	$	109,648

December 31, 2023
Construction and development	$	43,826	$	—	$	43,826
Single family residential	3,870		—		3,870
Other commercial real estate	76,229		—		76,229
Commercial	—		20,679		20,679
Total	$	123,925	$	20,679	$	144,604

The following table details activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2024. 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, 2024
Beginning balance, July 1, 2024	$	43,550	$	175,176	$	5,765	$	5,898	$	230,389
Provision for credit loss expense	8,088		1,598		1,755		707		12,148
Charge-offs	(8,235)		(159)		(1,744)		(524)		(10,662)
Recoveries	439		403		231		275		1,348
Net (charge-offs) recoveries	(7,796)		244		(1,513)		(249)		(9,314)
Ending balance, September 30, 2024	$	43,842	$	177,018	$	6,007	$	6,356	$	233,223

Nine Months Ended September 30, 2024
Beginning balance, January 1, 2024	$	36,470	$	177,177	$	5,868	$	5,716	$	225,231
Provision for credit loss expense	26,107		1,770		4,247		1,329		33,453
Charge-offs	(20,071)		(3,139)		(4,808)		(1,806)		(29,824)
Recoveries	1,336		1,210		700		1,117		4,363
Net (charge-offs) recoveries	(18,735)		(1,929)		(4,108)		(689)		(25,461)
Ending balance, September 30, 2024	$	43,842	$	177,018	$	6,007	$	6,356	$	233,223

Activity in the allowance for credit losses for the three and nine months ended September 30, 2023 was as follows:


(In thousands)	Commercial		Real Estate		Credit Card		Other Consumer and Other		Total
Allowance for credit losses:
Three Months Ended September 30, 2023
Beginning balance, July 1, 2023	$	30,985	$	165,813	$	6,330	$	6,838	$	209,966
Provision for credit loss expense	4,095		16,528		704		(1,105)		20,222
Charge-offs	(1,219)		(9,723)		(1,318)		(633)		(12,893)
Recoveries	245		429		234		344		1,252
Net (charge-offs) recoveries	(974)		(9,294)		(1,084)		(289)		(11,641)
Ending balance, September 30, 2023	$	34,106	$	173,047	$	5,950	$	5,444	$	218,547

Nine Months Ended September 30, 2023
Beginning balance, January 1, 2023	$	34,406	$	150,795	$	5,140	$	6,614	$	196,955
Provision for credit loss expense	774		32,013		3,847		(435)		36,199
Charge-offs	(2,857)		(11,362)		(3,803)		(1,755)		(19,777)
Recoveries	1,783		1,601		766		1,020		5,170
Net (charge-offs) recoveries	(1,074)		(9,761)		(3,037)		(735)		(14,607)
Ending balance, September 30, 2023	$	34,106	$	173,047	$	5,950	$	5,444	$	218,547

The components of the provision for credit losses for the three and nine month periods ended September 30, 2024 and 2023 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2024		2023		2024		2023
Provision for credit losses related to:
Loans	$	12,148	$	20,222	$	33,453	$	36,199
Unfunded commitments	—		(11,300)		—		(16,300)
Securities - HTM	—		—		—		1,826
Securities - AFS	—		(1,200)		—		10,274
Total	$	12,148	$	7,722	$	33,453	$	31,999

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

Schedule of Troubled Debt Restructuring

The following table presents a summary of the amortized cost basis of loan modifications granted to borrowers experiencing financial difficulty, segregated by class of loans and type of loan modification, for the three and nine month periods ended September 30, 2024.


			Percent of
	Interest Rate		Total Class
(Dollars in thousands)	Reduction		of Loans
Three Months Ended September 30, 2024
Real estate:
Single family residential	$	142	0.01	%
Total real estate	$	142

Nine Months Ended September 30, 2024
Real estate:
Single family residential	$	795	0.03	%
Total real estate	$	795


			Percent of
			Total Class
(Dollars in thousands)	Term Extension		of Loans
Three Months Ended September 30, 2023
Real estate:
Other commercial	$	30,617	0.40	%
Total real estate	30,617
Commercial:
Commercial	85		—	%
Total commercial	85
Total	$	30,702

Nine Months Ended September 30, 2023
Real estate:
Other commercial	$	30,617	0.40	%
Total real estate	30,617
Commercial:
Commercial	736		0.03	%
Total commercial	736
Total	$	31,353