Loans and Allowance for Loan Losses ("ALLL") | Note 4: Loan Portfolio Segments Categories of loans at September 30, 2022 and December 31, 2021 include: Accrued interest of $ 15 10 assets” on the Consolidated Balance Sheets is excluded from the amortized cost basis disclosed The Company aggregates the loan portfolio by similar credit risk characteristics. The detail below: ● Commercial and Industrial plant, and equipment purchases and expansions. Loan terms typically require decrease the outstanding loan balance. operation. Credit risk is driven by creditworthiness of a borrower and stability from business operations. The category also includes the remaining PPP loans outstanding. These loans were established by the Relief, and Economic Security Act which authorized forgivable loans to small businesses to pay their employees during the COVID-19 pandemic. The loans are 100 repayment is primarily dependent on the borrower’s cash flow or SBA repayment approval. ● Commercial and Industrial Lines of Credit – The category includes lines of credit to commercial and industrial customers for working capital needs. The loan terms typically require interest-only require the full balance paid-off at maturity. Lines of credit allow the borrower based on the customer’s cash flow needs. Repayment is primarily from the operating risk is driven by creditworthiness of a borrower and the economic conditions that impact business operations. ● Energy exploration and production activities, and acquisitions. The loans are repaid primarily and natural gas to cash. Credit risk is driven by creditworthiness of a borrower and the the cash flow stability from business operations. Energy loans are typically collateralized reserves. ● Commercial Real Estate these loans is generally dependent on the successful operations of the property conducted on the property securing the loan. These are viewed primarily as cash flow loans and secured by real estate. Credit risk may be impacted by the creditworthiness of economies in the borrower’s market areas. ● Construction and Land Development estimated value of the completed project and include independent appraisal reviews developers and property owners. Sources of repayment include permanent interim loan commitment from the Company until permanent financing other real estate loans due to their ultimate repayment being sensitive to interest rate changes, conditions, and the availability of long-term financing. Credit risk may borrower, property values and the local economies in the borrower’s market ● Residential Real Estate - The category includes loans that are generally secured by owner-occupied residences. Credit risk in these loans can be impacted by economic conditions within or outside might impact either property values or a borrower’s personal income. ● Multifamily Real Estate - The category includes loans that are generally secured by multifamily properties. of these loans is primarily dependent on occupancy rates and the personal loans can be impacted by economic conditions within or outside the property values or the tenants’ personal income. ● Consumer - The category includes revolving lines of credit and various term loans such for other personal purposes. Repayment is primarily dependent on borrowers. Credit risk is driven by consumer economic factors (such as unemployment in the borrower’s market area) and the creditworthiness of a borrower. Allowance for Credit Losses The Company established a CECL committee that meets at least quarterly to oversee the ACL methodology. The committee estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The ACL represents the Company’s current estimate of lifetime credit losses inherent in the loan portfolio at the balance sheet date. The ACL is adjusted for expected prepayments when appropriate and excludes expected extensions, renewals, and modifications. The ACL is the sum of three components: (i) asset specific / individual loan reserves; (ii) quantitative (formulaic or pooled) reserves; and (iii) qualitative (judgmental) reserves. Asset Specific - individually evaluated. Individual reserves are calculated for loans risk-rated doubtful or loss that are greater than a defined dollar threshold. asset specific loans may be based on collateral, for collateral-dependent expected cash flow, market sentiment, and guarantor support. Quantitative - The Company used the cohort method, which identifies and captures the balance of a pool of loans with risk characteristics as of a particular time to form a cohort. For example, the commercial and industrial lines of credit loan segments as of quarter over the remaining life of loans or until the pool is exhausted. The Company used a lookback establish the cohort population. By using the historical data timeframe, loan segments and adjust the losses with qualitative and forecast factors. Qualitative primarily uses the following qualitative factors: ◾ The nature and volume of changes in risk ratings; ◾ The volume and severity of past due loans; ◾ The volume of non-accrual loans; ◾ The nature and volume of the loan portfolio, including the existence, growth, ◾ Changes in the Institute of Supply Management’s Purchasing Manager Indices ◾ Changes in collateral values; ◾ Changes in lending policies, procedures, and quality of loan reviews; ◾ Changes in lending staff; and ◾ Changes in competition, legal and regulatory environments In addition to the current condition qualitative adjustments, the Company uses the adjust the ACL based on forward looking guidance. The Federal Reserve’s unemployment forecast extends three-years and is eventually reverted to the mean of six percent by year 10. Drivers of Change in the ACL The ACL increased by less than $ 0.1 $ 2.1 1.9 of $ 0.2 2.5 driven by $ 4.1 5.8 increase of $ 7.4 Credit Quality Indicators Internal Credit Risk Ratings The Company uses a weighted average risk rating factor to adjust the historical incorporate the criteria utilized by regulatory authorities to describe criticized within the regulatory “Pass” category. Risk ratings are established for rating assigned to a loan reflects the risks posed by the borrower’s expected metrics used to determine a risk rating include, but are not limited to, cash flow loan risk ratings follows: Loan Grades ● Pass (risk rating 1-4) that generally maintain good liquidity and financial condition, or remaining flat or declining. Most ratios compare favorably with industry programmed and timely repayment is expected. ● Special Mention (risk rating 5) an imbalanced position in their balance sheet that has not reached a point where repayment currently protected but, if left uncorrected, the potential weaknesses may prospects for the credit or in the Company’s credit or lien position at a future date. These credits are classified and do not expose the Company to enough risk to warrant adverse ● Substandard (risk rating 6) jeopardize repayment. Credits are inadequately protected by the current worth the collateral pledged. A distinct possibility exists that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does individual assets classified substandard. Substandard loans include both broken out in the table below. ● Doubtful (risk rating 7) - The category includes borrowers that exhibit weaknesses inherent in a substandard credit and characteristics that these weaknesses make collection or liquidation in full highly existing facts, conditions, and values. Because of reasonably specific pending and strengthening of the assets, classification as a loss is deferred until its more ● Loss (risk rating 8) - Credits which are considered uncollectible or of such little value that their continuance bankable asset is not warranted. The following tables present the credit risk profile of the Company’s loan portfolio Loan Portfolio Aging Analysis The following tables present the Company’s loan portfolio aging analysis as of September Non-accrual Loan Analysis Non-accrual loans are loans for which the Company does not record interest unless the credit is well secured and in process of collection. Past due status is based on an earlier date, if collection of principal or interest is considered doubtful. Loans brought current and future payments are reasonably assured. The following Interest income recognized on non-accrual loans was $ 0.9 1.3 Allowance for Credit Losses The following table presents the activity in the allowance for credit losses and three-month period ended September 30, 2022: Collateral Dependent Loans: Collateral dependent loans are loans for which the repayment is expected to be provided sale of the collateral and the borrower is experiencing financial difficulty. The following loans considered collateral dependent by loan segment and collateral type Troubled Debt Restructurings TDRs are those extended to borrowers who are experiencing financial excluding loan modifications as a result of the COVID-19 pandemic. maturity, reduction or deferment of monthly payment, or reduction of the For the nine-month periods ended September 30, 2022 and 2021, no outstanding balance of TDRs was $ 34 40 Disclosures under Previously Applicable The following disclosures are presented under previously applicable GAAP. The description loan rating categories is as described above. The following table presents an internal rating category and portfolio segment as of December 31, 2021: The following table presents the Company’s loan portfolio aging analysis of the 2021: The following table presents the Company’s loans on non-accrual as of The following table presents the allowance for loan losses by portfolio segment impairment methodology: A loan is considered impaired when based on current information and events, it is probable the Company will be unable to all amounts due from the borrower in accordance with the contractual terms but also include loans modified in TDRs where concessions have been granted to borrowers experiencing intent of concessions is to maximize collection. The following table presents loans Total interest income recognized during the three and nine-month periods 0.6 million and $ 1.9 2021 was $ 95 97 The following table presents the activity in the allowance for loan losses by portfolio periods ended September 30, 2021: Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses for off-balance sheet credit cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate is calculated for each loan segment and includes consideration of the expected credit losses on commitments expected to be funded over its estimated life. to be funded, the Company uses the reserve rate established for the related balance sheet credit exposures at September 30, 2022 is included in “interest payable The following categories of off-balance sheet credit exposures have been Loan commitments – include revolving lines of credit, non-revolving lines Risks inherent to revolving lines of credit often are related to the susceptibility of unpredictable cash flow or financial troubles, thus leading to payment default. lines of credit is the diversion of funds for other expenditures. Letters of credit – are primarily established to provide assurance to the beneficiary obligations arising out of a separate transaction between the beneficiary and beneficiary the right to draw on the letter of credit. September 30, 2022 December 31, 2021 (Dollars in thousands) Commercial and industrial $ 857,836 $ 843,024 Commercial and industrial lines of credit 831,187 617,398 Energy 178,855 278,579 Commercial real estate 1,400,338 1,278,479 Construction and land development 674,041 574,852 Residential real estate 393,867 360,046 Multifamily real estate 275,795 240,230 Consumer 65,727 63,605 Loans, net of unearned fees 4,677,646 4,256,213 Less: allowance for credit losses (1) 55,864 58,375 Loans, net $ 4,621,782 $ 4,197,838 (1) Operations and Summary of Significant Accounting Policies.” As of September 30, 2022 Amortized Cost Basis by Origination Year and Internal Risk Rating Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving Loans Revolving Loans converted to Term Loans Total (Dollars in thousands) Commercial and industrial Pass $ 285,880 $ 287,991 $ 70,591 $ 55,167 $ 55,665 $ 21,134 $ - $ 30,392 $ 806,820 Special mention 1,283 2,241 12,063 996 302 112 - 6,501 23,498 Substandard - accrual - 455 1,485 2,165 758 46 - 20,416 25,325 Substandard - non- accrual - 104 - 6 1,383 700 - - 2,193 Doubtful - - - - - - - - - Total $ 287,163 $ 290,791 $ 84,139 $ 58,334 $ 58,108 $ 21,992 $ - $ 57,309 $ 857,836 Commercial and industrial Pass $ - $ - $ - $ - $ - $ - $ 780,710 $ - $ 780,710 Special mention - - - - - - 32,814 - 32,814 Substandard - accrual - - - - - - 11,188 - 11,188 Substandard - non- accrual - - - - - - 6,475 - 6,475 Doubtful - - - - - - - - - Total $ - $ - $ - $ - $ - $ - $ 831,187 $ - $ 831,187 Energy Pass $ 7,446 $ 403 $ 246 $ - $ 7 $ - $ 156,119 $ 188 $ 164,409 Special mention - - - - - - 7,152 - 7,152 Substandard - accrual - - - - - - 2,131 - 2,131 Substandard - non- accrual - - - - - - 3,375 - 3,375 Doubtful - - - - - - 1,788 - 1,788 Total $ 7,446 $ 403 $ 246 $ - $ 7 $ - $ 170,565 $ 188 $ 178,855 As of September 30, 2022 Amortized Cost Basis by Origination Year and Internal Risk Rating Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving Loans Revolving Loans converted to Term Loans Total (Dollars in thousands) Commercial real estate Pass $ 270,669 $ 259,299 $ 145,530 $ 110,155 $ 67,990 $ 74,465 $ 293,169 $ 98,783 $ 1,320,060 Special mention 11,927 9,870 - 422 6,280 290 2,420 33,086 64,295 Substandard - accrual 10,535 - 327 - - 1,232 - 992 13,086 Substandard - non- accrual 408 2,489 - - - - - - 2,897 Doubtful - - - - - - - - - Total $ 293,539 $ 271,658 $ 145,857 $ 110,577 $ 74,270 $ 75,987 $ 295,589 $ 132,861 $ 1,400,338 Construction and land development Pass $ 205,062 $ 290,753 $ 126,364 $ 24,323 $ 3,663 $ 1,367 $ 14,679 $ - $ 666,211 Special mention - 7,830 - - - - - - 7,830 Substandard - accrual - - - - - - - - - Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - - - - Total $ 205,062 $ 298,583 $ 126,364 $ 24,323 $ 3,663 $ 1,367 $ 14,679 $ - $ 674,041 Residential real estate Pass $ 64,540 $ 79,235 $ 120,891 $ 46,023 $ 38,417 $ 35,590 $ 1,894 $ - $ 386,590 Special mention 253 3,290 - 231 - - - - 3,774 Substandard - accrual 142 - 3,166 - - - - - 3,308 Substandard - non- accrual - - - - - - - 195 195 Doubtful - - - - - - - - - Total $ 64,935 $ 82,525 $ 124,057 $ 46,254 $ 38,417 $ 35,590 $ 1,894 $ 195 $ 393,867 As of September 30, 2022 Amortized Cost Basis by Origination Year and Internal Risk Rating Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving Loans Revolving Loans converted to Term Loans Total (Dollars in thousands) Multifamily real estate Pass $ 78,194 $ 33,272 $ 5,363 $ 12,005 $ 3,078 $ 822 $ 126,518 $ 16,506 $ 275,758 Special mention - - - - - - - 37 37 Substandard - accrual - - - - - - - - - Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - - - - Total $ 78,194 $ 33,272 $ 5,363 $ 12,005 $ 3,078 $ 822 $ 126,518 $ 16,543 $ 275,795 Consumer Pass $ 11,629 $ 2,512 $ 1,914 $ 221 $ 110 $ 30 $ 49,311 $ - $ 65,727 Special mention - - - - - - - - - Substandard - accrual - - - - - - - - - Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - - - - Total $ 11,629 $ 2,512 $ 1,914 $ 221 $ 110 $ 30 $ 49,311 $ - $ 65,727 Total Pass $ 923,420 $ 953,465 $ 470,899 $ 247,894 $ 168,930 $ 133,408 $ 1,422,400 $ 145,869 $ 4,466,285 Special mention 13,463 23,231 12,063 1,649 6,582 402 42,386 39,624 139,400 Substandard - accrual 10,677 455 4,978 2,165 758 1,278 13,319 21,408 55,038 Substandard - non- accrual 408 2,593 - 6 1,383 700 9,850 195 15,135 Doubtful - - - - - - 1,788 - 1,788 Total $ 947,968 $ 979,744 $ 487,940 $ 251,714 $ 177,653 $ 135,788 $ 1,489,743 $ 207,096 $ 4,677,646 As of September 30, 2022 Amortized Cost Basis by Origination Year and Past Due Status Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Commercial and industrial 30-59 days $ 600 $ - $ - $ 15 $ - $ - $ - $ - $ 615 60-89 days - - - - - - - - - Greater than 90 days - 124 7 75 1,383 655 - - 2,244 Total past due 600 124 7 90 1,383 655 - - 2,859 Current 286,563 290,667 84,132 58,244 56,725 21,337 - 57,309 854,977 Total $ 287,163 $ 290,791 $ 84,139 $ 58,334 $ 58,108 $ 21,992 $ - $ 57,309 $ 857,836 Greater than 90 days and accruing $ - $ 20 $ 7 $ 73 $ - $ - $ - $ - $ 100 Commercial and industrial lines of credit 30-59 days $ - $ - $ - $ - $ - $ - $ 3,796 $ - $ 3,796 60-89 days - - - - - - - - - Greater than 90 days - - - - - - 1,568 - 1,568 Total past due - - - - - - 5,364 - 5,364 Current - - - - - - 825,823 - 825,823 Total $ - $ - $ - $ - $ - $ - $ 831,187 $ - $ 831,187 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ 83 $ - $ 83 Energy 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days - - - - - - - - - Greater than 90 days - - - - - - 5,163 - 5,163 Total past due - - - - - - 5,163 - 5,163 Current 7,446 403 246 - 7 - 165,402 188 173,692 Total $ 7,446 $ 403 $ 246 $ - $ 7 $ - $ 170,565 $ 188 $ 178,855 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - As of September 30, 2022 Amortized Cost Basis by Origination Year and Past Due Status Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Commercial real estate 30-59 days $ 408 $ - $ - $ - $ - $ 195 $ - $ - $ 603 60-89 days - - - - - 1,032 - - 1,032 Greater than 90 days - - - - - - - - - Total past due 408 - - - - 1,227 - - 1,635 Current 293,131 271,658 145,857 110,577 74,270 74,760 295,589 132,861 1,398,703 Total $ 293,539 $ 271,658 $ 145,857 $ 110,577 $ 74,270 $ 75,987 $ 295,589 $ 132,861 $ 1,400,338 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Construction and land development 30-59 days $ - $ - $ - $ - $ - $ - $ 10,629 $ - $ 10,629 60-89 days - - - - - - - - - Greater than 90 days - - - - - - - - - Total past due - - - - - - 10,629 - 10,629 Current 205,062 298,583 126,364 24,323 3,663 1,367 4,050 - 663,412 Total $ 205,062 $ 298,583 $ 126,364 $ 24,323 $ 3,663 $ 1,367 $ 14,679 $ - $ 674,041 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate 30-59 days $ 142 $ - $ - $ - $ - $ - $ - $ - $ 142 60-89 days - - - - - - - - - Greater than 90 days - 120 - - - - - - 120 Total past due 142 120 - - - - - - 262 Current 64,793 82,405 124,057 46,254 38,417 35,590 1,894 195 393,605 Total $ 64,935 $ 82,525 $ 124,057 $ 46,254 $ 38,417 $ 35,590 $ 1,894 $ 195 $ 393,867 Greater than 90 days and accruing $ - $ 120 $ - $ - $ - $ - $ - $ - $ 120 As of September 30, 2022 Amortized Cost Basis by Origination Year and Past Due Status Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Multifamily real estate 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days 4,566 - - - - - - - 4,566 Greater than 90 days - - - - - - - - - Total past due 4,566 - - - - - - - 4,566 Current 73,628 33,272 5,363 12,005 3,078 822 126,518 16,543 271,229 Total $ 78,194 $ 33,272 $ 5,363 $ 12,005 $ 3,078 $ 822 $ 126,518 $ 16,543 $ 275,795 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Consumer 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days - - - - - - - - - Greater than 90 days - - - - - - - - - Total past due - - - - - - - - - Current 11,629 2,512 1,914 221 110 30 49,311 - 65,727 Total $ 11,629 $ 2,512 $ 1,914 $ 221 $ 110 $ 30 $ 49,311 $ - $ 65,727 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Total 30-59 days $ 1,150 $ - $ - $ 15 $ - $ 195 $ 14,425 $ - $ 15,785 60-89 days 4,566 - - - - 1,032 - - 5,598 Greater than 90 days - 244 7 75 1,383 655 6,731 - 9,095 Total past due 5,716 244 7 90 1,383 1,882 21,156 - 30,478 Current 942,252 979,500 487,933 251,624 176,270 133,906 1,468,587 207,096 4,647,168 Total $ 947,968 $ 979,744 $ 487,940 $ 251,714 $ 177,653 $ 135,788 $ 1,489,743 $ 207,096 $ 4,677,646 Greater than 90 days and accruing $ - $ 140 $ 7 $ 73 $ - $ - $ 83 $ - $ 303 As of September 30, 2022 Amortized Cost Basis by Origination Year and On Non-accrual Amortized Cost Basis 2022 2021 2020 2019 2018 2017 and Prior Revolving loans Revolving loans converted to term loans Total Non- accrual Loans Non-accrual Loans with no related Allowance (Dollars in thousands) Commercial and industrial $ - $ 104 $ - $ 6 $ 1,383 $ 700 $ - $ - $ 2,193 $ 2,193 Commercial and industrial lines of credit - - - - - - 6,475 - 6,475 6,475 Energy - - - - - - 5,163 - 5,163 3,587 Commercial real estate 408 2,489 - - - - - - 2,897 2,897 Construction and land development - - - - - - - - - - Residential real estate - - - - - - - 195 195 195 Multifamily real estate - - - - - - - - - - Consumer - - - - - - - - - - Total $ 408 $ 2,593 $ - $ 6 $ 1,383 $ 700 $ 11,638 $ 195 $ 16,923 $ 15,347 For the Three Months Ended September 30, 2022 Commercial and Industrial Commercial and Industrial Lines of Credit Energy Commercial Real Estate Construction and Land Development Residential Real Estate Multifamily Real Estate Consumer Total (Dollars in thousands) Allowance for Credit Losses: Beginning balance $ 10,920 $ 11,267 $ 6,428 $ 17,042 $ 3,918 $ 3,134 $ 2,427 $ 681 $ 55,817 Charge-offs - (2,000) (642) - - - - - (2,642) Recoveries - 9 - 748 - - - 9 766 Provision (credit) 417 2,781 (958) (1,335) 669 103 246 - 1,923 Ending balance $ 11,337 $ 12,057 $ 4,828 $ 16,455 $ 4,587 $ 3,237 $ 2,673 $ 690 $ 55,864 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: Beginning balance $ 63 $ - $ 470 $ 657 $ 4,016 $ 4 $ 109 $ 1 $ 5,320 Provision (credit) 34 - 78 19 1,304 (2) (25) 3 1,411 Ending balance $ 97 $ - $ 548 $ 676 $ 5,320 $ 2 $ 84 $ 4 $ 6,731 For the Nine Months Ended September 30, 2022 Commercial and Industrial (1) Commercial and Industrial Lines of Credit (1) Energy Commercial Real Estate Construction and Land Development Residential Real Estate (2) Multifamily Real Estate (2) Consumer Total (Dollars in thousands) Allowance for Credit Losses: Beginning balance, prior to adoption of ASU 2016-13 $ 20,352 $ - $ 9,229 $ 19,119 $ 3,749 $ 5,598 $ - $ 328 $ 58,375 Impact of ASU 2016-13 adoption (10,213) 8,866 (39) (186) (83) (2,552) 2,465 (5) (1,747) Charge-offs (790) (3,971) (4,609) (1,102) - (217) - (13) (10,702) Recoveries 755 1,788 1,754 2,333 - - - 11 6,641 Provision (credit) 1,233 5,374 (1,507) (3,709) 921 408 208 369 3,297 Ending balance $ 11,337 $ 12,057 $ 4,828 $ 16,455 $ 4,587 $ 3,237 $ 2,673 $ 690 $ 55,864 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: Beginning balance, prior to adoption of ASU 2016-13 $ - $ - $ - $ - $ - $ - $ - $ - $ - Impact of ASU 2016-13 adoption 107 44 265 711 3,914 5 137 1 5,184 Provision (credit) (10) (44) 283 (35) 1,406 (3) (53) 3 1,547 Ending balance $ 97 $ - $ 548 $ 676 $ 5,320 $ 2 $ 84 $ 4 $ 6,731 (1) segment. (2) segment. As of September 30, 2022 Loan Segment and Collateral Description Amortized Cost of Collateral Dependent Loans Related Allowance for Credit Losses Amortized Cost of Collateral Dependent Loans with no related Allowance (Dollars in thousands) Commercial and Industrial All business assets $ 2,668 $ - $ 2,668 Commercial and Industrial Lines of Credit All business assets 5,519 - 5,519 Energy Oil and natural gas properties 9,626 157 9,469 Commercial Real Estate Commercial real estate properties 2,489 - 2,489 $ 20,302 $ 157 $ 20,145 As of December 31, 2021 Pass Special Mention Substandard Performing Substandard Non- performing Doubtful Loss Total (Dollars in thousands) Commercial and industrial $ 1,356,883 $ 16,201 $ 23,739 $ 4,858 $ - $ - $ 1,401,681 Energy 184,269 73,196 5,246 13,595 2,554 - 278,860 Commercial real estate 1,172,323 86,768 11,782 10,222 - - 1,281,095 Construction and land development 578,758 - - - - - 578,758 Residential and multifamily real estate 593,847 257 6,508 204 - - 600,816 PPP 64,805 - - - - - 64,805 Consumer 63,605 - - - - - 63,605 $ 4,014,490 $ 176,422 $ 47,275 $ 28,879 $ 2,554 $ - $ 4,269,620 As of December 31, 2021 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) Commercial and industrial $ 183 $ 499 $ 1,037 $ 1,719 $ 1,399,962 $ 1,401,681 $ 90 Energy - - 4,644 4,644 274,216 278,860 - Commercial real estate 85 992 - 1,077 1,280,018 1,281,095 - Construction and land development 966 117 - 1,083 577,675 578,758 - Residential and multifamily real estate 437 151 - 588 600,228 600,816 - PPP - - - - 64,805 64,805 - Consumer - 99 - 99 63,506 63,605 - $ 1,671 $ 1,858 $ 5,681 $ 9,210 $ 4,260,410 $ 4,269,620 $ 90 December 31, 2021 (Dollars in thousands) Commercial and industrial $ 4,858 Energy 16,148 Commercial real estate 10,222 Construction and land development - Residential and multifamily real estate 204 PPP - Consumer - Total non-accrual loans $ 31,432 As of December 31, 2021 Commercial and Industrial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 333 $ 2,100 $ 3,164 $ - $ - $ - $ - $ 5,597 Collectively evaluated for impairment 20,019 7,129 15,955 3,749 5,598 - 328 52,778 Ending balance $ 20,352 $ 9,229 $ 19,119 $ 3,749 $ 5,598 $ - $ 328 $ 58,375 Allocated to loans: Individually evaluated for impairment $ 5,739 $ 16,204 $ 31,597 $ - $ 3,387 $ - $ - $ 56,927 Collectively evaluated for impairment 1,395,942 262,656 1,249,498 578,758 597,429 64,805 63,605 4,212,693 Ending balance $ 1,401,681 $ 278,860 $ 1,281,095 $ 578,758 $ 600,816 $ 64,805 $ 63,605 $ 4,269,620 As of December 31, 2021 Recorded Balance Unpaid Principal Balance Specific Allowance (Dollars in thousands) Commercial and industrial $ 4,659 $ 4,740 $ - 3,509 7,322 - Commercial real estate 1,729 1,729 - - - - Residential and multifamily real estate 3,387 3,387 - - - - Consumer - - - Commercial and industrial 1,080 1,080 333 12,695 17,977 2,100 Commercial real estate 29,868 30,854 3,164 - - - Residential and multifamily real estate - - - - - - Consumer - - - Commercial and industrial 5,739 5,820 333 16,204 25,299 2,100 Commercial real estate 31,597 32,583 3,164 - - - Residential and multifamily real estate 3,387 3,387 - - - - Consumer - - - $ 56,927 $ 67,089 $ 5,597 Three Months Ended September 30, 2021 Commercial and Industrial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses: Beginning balance $ 28,433 $ 17,849 $ 19,181 $ 3,885 $ 5,826 $ - $ 319 $ 75,493 Provision (3,666) (4,798) (236) (694) (561) - (45) (10,000) Charge-offs (1,071) (503) - - - - (1) (1,575) Recoveries 225 - - - 5 - 4 234 Ending balance $ 23,921 $ 12,548 $ 18,945 $ 3,191 $ 5,270 $ - $ 277 $ 64,152 Nine Months Ended September 30, 2021 Commercial and Industrial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses: Beginning balance $ 24,693 $ 18,341 $ 22,354 $ 3,612 $ 5,842 $ - $ 453 $ 75,295 Provision 10,881 (5,290) (3,409) (421) (577) - (184) 1,000 Charge-offs (11,903) (503) - - - - (1) (12,407) Recoveries 250 - - - 5 - 9 264 Ending balance $ 23,921 $ 12,548 $ 18,945 $ 3,191 $ 5,270 $ - $ 277 $ 64,152 |