Loans and Allowance for Credit Losses | Note 4: The table below shows and fair value marks of $ 26 24 Accrued interest of $ 29 23 of financial condition is excluded from the carrying value disclosed in the above table. The Company aggregates the loan portfolio by similar credit risk characteristics. Effective reflect how management monitors the portfolio, assesses credit risk and evaluates segments. The loan segments are described in additional detail below: ● Commercial and Industrial purchases, business operations, expansions and for working capital balance while the lines of credit typically require interest-only payments down and repay the line of credit based on the client’s Credit risk is driven by creditworthiness of a borrower and the economic conditions. ● Energy acquisitions. The loans are repaid primarily from the conversion of crude oil and natural gas to cash. Credit risk is driven economic conditions that impact the cash flow stability from business operations. Energy ● Commercial Real Estate – Owner-Occupied and/or the principals and the primary source of repayment is through the cash flows generated real estate loans are typically secured by a first lien mortgage on real property plus assignments the creditworthiness of a borrower, property values and the local economies in the borrower ● Commercial Real Estate – Non-Owner-Occupied generally dependent on the leasing income generated from tenants. These are viewed primarily as cash Additionally, the category includes construction and land development loans Independent appraisals and a financial analysis of the developers and property owners loans, sales of developed property or an interim loan commitment from the Company real estate loans due to their ultimate repayment being sensitive to interest rate changes, The category also includes loans that are secured by multifamily properties. Credit risk for non-owner occupied commercial real estate loans may be impacted the borrower’s market areas. ● Residential Real Estate - The category includes loans that are generally secured by owner-occupied 1-4 family residences dependent on the personal income and credit rating of the borrowers. We also offer open- second lien positions on residential real estate. might impact either property values or a borrower’s personal income. ● Consumer - The category includes personal lines of credit and various term loans such as automobile primarily dependent on the personal income and credit rating of the borrowers. Credit general economic conditions in the borrower’s Allowance for Credit Losses The Company’s CECL committee meets at least quarterly to internal and external sources, relating to past events, current conditions, and reasonable credit losses inherent in the loan portfolio at the statement of financial condition 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 reserves. Asset Specific - calculated for loans that are risk-rated substandard and on non-accrual and loans that are risk specific loans may be based on collateral, for collateral-dependent loans, or on quantitative support. Quantitative - The Company used the cohort method, which identifies and captures the balance of a pool of loans form a cohort. The cohort is then tracked for losses over the remaining life of loans or until the pool establish the cohort population. By using the historical data timeframe, the Company can Qualitative ◾ 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, and effect of ◾ Changes in the Institute of Supply Management’s Purchasing ◾ 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 Federal guidance. The Federal Reserve’s unemployment Internal Credit Risk Ratings The Company uses a weighted average risk rating factor to adjust the historical authorities to describe criticized assets, but separate various levels of risk concentrated are monitored on an ongoing basis. The rating assigned to a loan reflects the risks posed by the borrower used to determine a risk rating include, but are not limited to, cash flow adequacy, liquidity, Loan Grades ● Pass (risk rating 1-4) financial condition, or the credit is currently protected with sales trends remaining policies. Debt is programmed and timely repayment is expected. ● Special Mention (risk rating 5) sheet that has not reached a point where repayment is jeopardized. Credits are currently protected deterioration of the repayment prospects for the credit or in the Company’s expose the Company to enough risk to warrant adverse classification. ● Substandard (risk rating 6) protected by the current worth and paying capacity of the obligor or of 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. Substandard loans include both performing and non-performing loans and ● Doubtful (risk rating 7) - The category includes borrowers that exhibit weaknesses inherent in a substandard credit collection or liquidation in full highly questionable or improbable based which may work to the advantage and strengthening of the assets, classification as a loss is ● Loss (risk rating 8) - Credits that are considered uncollectible or of such little value that their continuance as a bankable The following tables present the credit risk profile of the Company’s December 31, 2022: Loan Portfolio Aging Analysis The following tables present the Company’s Non-accrual Loan Analysis Non-accrual loans are loans for which the Company does not record interest income. The unless the credit is well secured and in process of collection. Past due status is based an earlier date, if collection of principal or interest is considered doubtful. Loans are returned brought current and future payments are reasonably assured. The following tables present 31, 2022: We recognized no 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 allowance three- and nine-months ended September 30, 2023: The ACL increased $ 4.0 4.0 and loan growth. 1.3 0.3 million for reserves on PCD loans and $ 0.9 decreased $ 1.6 The ACL increased $ 9.8 12.1 economic factors and an increase in specific reserves. 3.5 included increases of $ 0.3 0.9 $ 2.6 The following tables presents the Company’s gross Collateral Dependent Loans: Collateral dependent loans are loans for which the repayment is expected to be provided sale of the collateral and the borrower loans considered collateral dependent by loan segment and collateral type Loan Modifications The Company considers loans to borrowers experiencing financial difficulties to be Company adopted ASU 2022-02, which eliminates the accounting guidance for troubled debt restructurings (“TDR entity evaluate whether loan modifications represent a new loan or a (“TDM”) may include principal forgiveness, interest rate reductions, other-than-insignificant combination thereof. During the three- and nine-months ended September 30, 2023, the Company four seven amortized cost basis at September 30, 2023 of $ 9.2 presents, by loan segment, the amortized cost basis as of the date shown for difficulty: The following schedule presents the payment status by loan class, as of September that have been modified since January 1, 2023: The Company had no TDMs that were modified and had defaulted on their modified terms September 30, 2023. For purposes of this disclosure, the Company considers “default interest. The allowance for credit losses related to TDMs on non-accrual status is determined by individual evaluation, collateral adequacy, using the same process as loans on non-accrual status The following schedule presents the financial effect of the modifications September 30, 2023: Troubled Debt Restructurings Prior to the adoption of ASU 2022-02, TDRs were extended to borrowers who were experiencing financial difficulty and been granted a concession, excluding loan modifications as a result of the COVID included the extension of maturity, reduction or deferment of monthly payment, or The outstanding balance of TDRs recognized prior to the adoption of ASU 2022-02 was $ 28.1 30.5 September 30, 2023 and December 31, 2022, respectively. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses for off-balance sheet credit exposures cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted as a provision (release) for credit loss expense. The estimate is calculated for each loan segment and includes consideration of the likelihood the expected credit losses on commitments expected to be funded over its estimated life. expected to be funded, the Company uses the reserve rate established for the related 6 9 for credit losses on off-balance sheet credit exposures at September 30, “interest payable and other liabilities” The following categories of off-balance sheet credit exposures have been identified: Loan commitments – include revolving lines of credit, non-revolving inherent to revolving lines of credit often are related to the susceptibility of an individual or flow or financial troubles, thus leading to payment default. The primary risk associated diversion of funds for other expenditures. Letters of credit – are primarily established to provide assurance to the beneficiary arising out of a separate transaction between the beneficiary and applicant. If the obligation to draw on the letter of credit. September 30, 2023 December 31, 2022 Amount % of Loans Amount % of Loans (Dollars in thousands) Commercial and industrial $ 2,056,171 34 % $ 1,974,932 37 % Energy 214,166 4 173,218 3 Commercial real estate - owner-occupied 583,442 10 437,119 8 Commercial real estate - non-owner-occupied 2,592,684 43 2,314,600 43 Residential real estate 456,047 8 439,367 8 Consumer 43,243 1 33,493 1 Loans, net of unearned fees 5,945,753 100 % 5,372,729 100 % Less: allowance for credit losses on loans (71,556) (61,775) Loans, net of the allowance for credit losses on loans $ 5,874,197 $ 5,310,954 As of September 30, 2023 Amortized Cost Basis by Origination Year and Internal Risk Rating Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving Loans Revolving Loans converted to Term Loans Total (Dollars in thousands) Commercial and industrial Pass $ 320,587 $ 268,333 $ 205,175 $ 61,917 $ 42,458 $ 26,244 $ 964,811 $ 48,584 $ 1,938,109 Special mention 13,314 5,650 11,072 32 204 30 30,308 6,184 66,794 Substandard - accrual 1,408 546 68 271 787 831 19,252 17,111 40,274 Substandard - non- accrual - - - 24 - - 10,785 185 10,994 Doubtful - - - - - - - - - Total $ 335,309 $ 274,529 $ 216,315 $ 62,244 $ 43,449 $ 27,105 $ 1,025,156 $ 72,064 $ 2,056,171 Energy Pass $ - $ 7,075 $ - $ 174 $ - $ - $ 206,384 $ 125 $ 213,758 Special mention - - - - - - - - - Substandard - accrual - - - - - - - - - Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - 408 - 408 Total $ - $ 7,075 $ - $ 174 $ - $ - $ 206,792 $ 125 $ 214,166 Commercial real estate - owner-occupied Pass $ 41,733 $ 92,985 $ 129,798 $ 62,822 $ 46,925 $ 37,629 $ 89,539 $ 37,584 $ 539,015 Special mention 10,187 7,396 2,746 2,178 798 7,310 - 580 31,195 Substandard - accrual 3,041 - 5,892 1,639 857 71 - 1,528 13,028 Substandard - non- accrual - - 204 - - - - - 204 Doubtful - - - - - - - - - Total $ 54,961 $ 100,381 $ 138,640 $ 66,639 $ 48,580 $ 45,010 $ 89,539 $ 39,692 $ 583,442 As of September 30, 2023 Amortized Cost Basis by Origination Year and Internal Risk Rating Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving Loans Revolving Loans converted to Term Loans Total (Dollars in thousands) Commercial real estate - non-owner- occupied Pass $ 392,980 $ 876,727 $ 291,711 $ 162,183 $ 83,502 $ 61,611 $ 561,670 $ 91,198 $ 2,521,582 Special mention - 19,682 - 114 16,234 4,102 - 32 40,164 Substandard - accrual 10,443 - 7,530 3,625 - 309 - 439 22,346 Substandard - non- accrual - - 8,448 144 - - - - 8,592 Doubtful - - - - - - - - - Total $ 403,423 $ 896,409 $ 307,689 $ 166,066 $ 99,736 $ 66,022 $ 561,670 $ 91,669 $ 2,592,684 Residential real estate Pass $ 29,272 $ 85,249 $ 84,931 $ 113,631 $ 38,427 $ 64,493 $ 30,418 $ - $ 446,421 Special mention - 647 3,540 176 - - - - 4,363 Substandard - accrual 253 - 1,320 3,125 207 - 176 - 5,081 Substandard - non- accrual - - - - - - - 182 182 Doubtful - - - - - - - - - Total $ 29,525 $ 85,896 $ 89,791 $ 116,932 $ 38,634 $ 64,493 $ 30,594 $ 182 $ 456,047 Consumer Pass $ 10,737 $ 6,429 $ 533 $ 69 $ 235 $ 140 $ 25,068 $ - $ 43,211 Special mention - - - - - 6 - - 6 Substandard - accrual - - - 26 - - - - 26 Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - - - - Total $ 10,737 $ 6,429 $ 533 $ 95 $ 235 $ 146 $ 25,068 $ - $ 43,243 As of September 30, 2023 Amortized Cost Basis by Origination Year and Internal Risk Rating Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving Loans Revolving Loans converted to Term Loans Total (Dollars in thousands) Total Pass $ 795,309 $ 1,336,798 $ 712,148 $ 400,796 $ 211,547 $ 190,117 $ 1,877,890 $ 177,491 $ 5,702,096 Special mention 23,501 33,375 17,358 2,500 17,236 11,448 30,308 6,796 142,522 Substandard - accrual 15,145 546 14,810 8,686 1,851 1,211 19,428 19,078 80,755 Substandard - non- accrual - - 8,652 168 - - 10,785 367 19,972 Doubtful - - - - - - 408 - 408 Total $ 833,955 $ 1,370,719 $ 752,968 $ 412,150 $ 230,634 $ 202,776 $ 1,938,819 $ 203,732 $ 5,945,753 As of December 31, 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 $ 465,963 $ 281,166 $ 55,934 $ 50,445 $ 48,595 $ 20,648 $ 890,109 $ 19,089 $ 1,831,949 Special mention 2,531 23,055 14,573 2,951 4,947 86 49,861 41 98,045 Substandard - accrual 290 677 1,647 1,330 740 299 10,805 21,166 36,954 Substandard - non- accrual - 104 - 6 1,383 - 6,479 - 7,972 Doubtful - - - - - - - - - Loss - - - - - 12 - - 12 Total $ 468,784 $ 305,002 $ 72,154 $ 54,732 $ 55,665 $ 21,045 $ 957,254 $ 40,296 $ 1,974,932 Energy Pass $ 7,585 $ 306 $ 228 $ - $ - $ - $ 162,834 $ 171 $ 171,124 Special mention - - - - - - - - - Substandard - accrual - - - - - - 1,476 - 1,476 Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - 618 - 618 Loss - - - - - - - - - Total $ 7,585 $ 306 $ 228 $ - $ - $ - $ 164,928 $ 171 $ 173,218 Commercial real estate - owner-occupied Pass $ 79,695 $ 127,489 $ 56,607 $ 49,620 $ 28,143 $ 20,299 $ 28,814 $ 14,024 $ 404,691 Special mention 17,292 6,603 452 1,330 98 2,486 - 2,469 30,730 Substandard - accrual - - 403 - - 1,295 - - 1,698 Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 96,987 $ 134,092 $ 57,462 $ 50,950 $ 28,241 $ 24,080 $ 28,814 $ 16,493 $ 437,119 As of December 31, 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 - non-owner-occupied Pass $ 827,420 $ 442,176 $ 200,090 $ 101,827 $ 49,834 $ 73,940 $ 458,297 $ 111,322 $ 2,264,906 Special mention 5,931 7,727 114 - 6,460 1,853 2,429 9,852 34,366 Substandard - accrual 10,545 310 607 82 60 253 - 992 12,849 Substandard - non- accrual - 2,479 - - - - - - 2,479 Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 843,896 $ 452,692 $ 200,811 $ 101,909 $ 56,354 $ 76,046 $ 460,726 $ 122,166 $ 2,314,600 Residential real estate Pass $ 77,416 $ 84,158 $ 121,078 $ 45,265 $ 37,395 $ 34,852 $ 31,892 $ - $ 432,056 Special mention 253 3,272 187 226 - - - - 3,938 Substandard - accrual 34 - 3,148 - - - - - 3,182 Substandard - non- accrual - - - - - - - 191 191 Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 77,703 $ 87,430 $ 124,413 $ 45,491 $ 37,395 $ 34,852 $ 31,892 $ 191 $ 439,367 Consumer Pass $ 7,917 $ 1,347 $ 2,611 $ 265 $ 129 $ 6 $ 21,173 $ - $ 33,448 Special mention - - - - 8 - - - 8 Substandard - accrual - - 32 - 5 - - - 37 Substandard - non- accrual - - - - - - - - - Doubtful - - - - - - - - - Loss - - - - - - - - - Total $ 7,917 $ 1,347 $ 2,643 $ 265 $ 142 $ 6 $ 21,173 $ - $ 33,493 As of December 31, 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) Total Pass $ 1,465,996 $ 936,642 $ 436,548 $ 247,422 $ 164,096 $ 149,745 $ 1,593,119 $ 144,606 $ 5,138,174 Special mention 26,007 40,657 15,326 4,507 11,513 4,425 52,290 12,362 167,087 Substandard - accrual 10,869 987 5,837 1,412 805 1,847 12,281 22,158 56,196 Substandard - non- accrual - 2,583 - 6 1,383 - 6,479 191 10,642 Doubtful - - - - - - 618 - 618 Loss - - - - - 12 - - 12 Total $ 1,502,872 $ 980,869 $ 457,711 $ 253,347 $ 177,797 $ 156,029 $ 1,664,787 $ 179,317 $ 5,372,729 As of September 30, 2023 Amortized Cost Basis by Origination Year and Past Due Status Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Commercial and industrial 30-59 days $ 54 $ 18 $ - $ 24 $ - $ - $ 1,488 $ 2,089 $ 3,673 60-89 days - - - - 593 235 4,360 181 5,369 Greater than 90 days - 30 76 - - - 11,162 13,605 24,873 Total past due 54 48 76 24 593 235 17,010 15,875 33,915 Current 335,255 274,481 216,239 62,220 42,856 26,870 1,008,146 56,189 2,022,256 Total $ 335,309 $ 274,529 $ 216,315 $ 62,244 $ 43,449 $ 27,105 $ 1,025,156 $ 72,064 $ 2,056,171 Greater than 90 days and accruing $ - $ 30 $ 76 $ - $ - $ - $ 543 $ 13,605 $ 14,254 Energy 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days - - - - - - - - - Greater than 90 days - - - - - - 408 - 408 Total past due - - - - - - 408 - 408 Current - 7,075 - 174 - - 206,384 125 213,758 Total $ - $ 7,075 $ - $ 174 $ - $ - $ 206,792 $ 125 $ 214,166 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - As of September 30, 2023 Amortized Cost Basis by Origination Year and Past Due Status Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Commercial real estate - owner-occupied 30-59 days $ - $ - $ 5,892 $ - $ 232 $ - $ - $ - $ 6,124 60-89 days - - - - - - - - - Greater than 90 days - - 204 - - - - - 204 Total past due - - 6,096 - 232 - - - 6,328 Current 54,961 100,381 132,544 66,639 48,348 45,010 89,539 39,692 577,114 Total $ 54,961 $ 100,381 $ 138,640 $ 66,639 $ 48,580 $ 45,010 $ 89,539 $ 39,692 $ 583,442 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - non-owner-occupied 30-59 days $ 4,511 $ 1,775 $ - $ - $ - $ - $ 249 $ - $ 6,535 60-89 days - - 7,530 144 - - - - 7,674 Greater than 90 days - - 6,029 - - - - - 6,029 Total past due 4,511 1,775 13,559 144 - - 249 - 20,238 Current 398,912 894,634 294,130 165,922 99,736 66,022 561,421 91,669 2,572,446 Total $ 403,423 $ 896,409 $ 307,689 $ 166,066 $ 99,736 $ 66,022 $ 561,670 $ 91,669 $ 2,592,684 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate 30-59 days $ - $ 14 $ - $ - $ - $ - $ - $ - $ 14 60-89 days - - - - - - - - - Greater than 90 days - - 1,320 - - - 176 - 1,496 Total past due - 14 1,320 - - - 176 - 1,510 Current 29,525 85,882 88,471 116,932 38,634 64,493 30,418 182 454,537 Total $ 29,525 $ 85,896 $ 89,791 $ 116,932 $ 38,634 $ 64,493 $ 30,594 $ 182 $ 456,047 Greater than 90 days and accruing $ - $ - $ 1,320 $ - $ - $ - $ 176 $ - $ 1,496 As of September 30, 2023 Amortized Cost Basis by Origination Year and Past Due Status Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving loans Revolving loans converted to term loans Total (Dollars in thousands) Consumer 30-59 days $ - $ 47 $ 19 $ - $ - $ - $ - $ - $ 66 60-89 days - 2 - - - - - - 2 Greater than 90 days - - - - - - - - - Total past due - 49 19 - - - - - 68 Current 10,737 6,380 514 95 235 146 25,068 - 43,175 Total $ 10,737 $ 6,429 $ 533 $ 95 $ 235 $ 146 $ 25,068 $ - $ 43,243 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Total 30-59 days $ 4,565 $ 1,854 $ 5,911 $ 24 $ 232 $ - $ 1,737 $ 2,089 $ 16,412 60-89 days - 2 7,530 144 593 235 4,360 181 13,045 Greater than 90 days - 30 7,629 - - - 11,746 13,605 33,010 Total past due 4,565 1,886 21,070 168 825 235 17,843 15,875 62,467 Current 829,390 1,368,833 731,898 411,982 229,809 202,541 1,920,976 187,857 5,883,286 Total $ 833,955 $ 1,370,719 $ 752,968 $ 412,150 $ 230,634 $ 202,776 $ 1,938,819 $ 203,732 $ 5,945,753 Greater than 90 days and accruing $ - $ 30 $ 1,396 $ - $ - $ - $ 719 $ 13,605 $ 15,750 As of December 31, 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 $ 20 $ 4,784 $ - $ - $ - $ 1,049 $ 2,814 $ - $ 8,667 60-89 days - 55 - - - - 980 430 1,465 Greater than 90 days - 143 7 6 1,383 12 7,063 - 8,614 Total past due 20 4,982 7 6 1,383 1,061 10,857 430 18,746 Current 468,764 300,020 72,147 54,726 54,282 19,984 946,397 39,866 1,956,186 Total $ 468,784 $ 305,002 $ 72,154 $ 54,732 $ 55,665 $ 21,045 $ 957,254 $ 40,296 $ 1,974,932 Greater than 90 days and accruing $ - $ 39 $ 7 $ - $ - $ - $ 584 $ - $ 630 Energy 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days - - - - - - - - - Greater than 90 days - - - - - - 618 - 618 Total past due - - - - - - 618 - 618 Current 7,585 306 228 - - - 164,310 171 172,600 Total $ 7,585 $ 306 $ 228 $ - $ - $ - $ 164,928 $ 171 $ 173,218 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Commercial real estate - owner-occupied 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days - - - - - - - - - Greater than 90 days - - - - - - - - - Total past due - - - - - - - - - Current 96,987 134,092 57,462 50,950 28,241 24,080 28,814 16,493 437,119 Total $ 96,987 $ 134,092 $ 57,462 $ 50,950 $ 28,241 $ 24,080 $ 28,814 $ 16,493 $ 437,119 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - As of December 31, 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 - non-owner-occupied 30-59 days $ 4,293 $ - $ - $ 1,180 $ - $ - $ - $ - $ 5,473 60-89 days - - - - - - - - - Greater than 90 days - - - - - - - - - Total past due 4,293 - - 1,180 - - - - 5,473 Current 839,603 452,692 200,811 100,729 56,354 76,046 460,726 122,166 2,309,127 Total $ 843,896 $ 452,692 $ 200,811 $ 101,909 $ 56,354 $ 76,046 $ 460,726 $ 122,166 $ 2,314,600 Greater than 90 days and accruing $ - $ - $ - $ - $ - $ - $ - $ - $ - Residential real estate 30-59 days $ - $ 3,867 $ - $ 10 $ - $ - $ 30 $ - $ 3,907 60-89 days - - - - - - - - - Greater than 90 days - 120 - - - - - - 120 Total past due - 3,987 - 10 - - 30 - 4,027 Current 77,703 83,443 124,413 45,481 37,395 34,852 31,862 191 435,340 Total $ 77,703 $ 87,430 $ 124,413 $ 45,491 $ 37,395 $ 34,852 $ 31,892 $ 191 $ 439,367 Greater than 90 days and accruing $ - $ 120 $ - $ - $ - $ - $ - $ - $ 120 Consumer 30-59 days $ - $ - $ - $ - $ - $ - $ - $ - $ - 60-89 days - - 2 - 5 - - - 7 Greater than 90 days - - - - - - - - - Total past due - - 2 - 5 - - - 7 Current 7,917 1,347 2,641 265 137 6 21,173 - 33,486 Total $ 7,917 $ 1,347 $ 2,643 $ 265 $ 142 $ 6 $ 21,173 $ - $ 33,493 As of December 31, 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) Total 30-59 days $ 4,313 $ 8,651 $ - $ 1,190 $ - $ 1,049 $ 2,844 $ - $ 18,047 60-89 days - 55 2 - 5 - 980 430 1,472 Greater than 90 days - 263 7 6 1,383 12 7,681 - 9,352 Total past due 4,313 8,969 9 1,196 1,388 1,061 11,505 430 28,871 Current 1,498,559 971,900 457,702 252,151 176,409 154,968 1,653,282 178,887 5,343,858 Total $ 1,502,872 $ 980,869 $ 457,711 $ 253,347 $ 177,797 $ 156,029 $ 1,664,787 $ 179,317 $ 5,372,729 Greater than 90 days and accruing $ - $ 159 $ 7 $ - $ - $ - $ 584 $ - $ 750 As of September 30, 2023 Amortized Cost Basis by Origination Year and On Nonaccrual Amortized Cost Basis 2023 2022 2021 2020 2019 2018 and Prior Revolving loans Revolving loans converted to term loans Total Nonaccrual Loans Nonaccrual Loans with no related Allowance (Dollars in thousands) Commercial and industrial $ - $ - $ 8 $ 24 $ - $ - $ 10,777 $ 185 $ 10,994 $ 6,720 Energy - - - - - - 408 - 408 408 Commercial real estate - owner-occupied - - 204 - - - - - 204 204 Commercial real estate - non-owner-occupied - - 8,448 144 - - - - 8,592 8,592 Residential real estate - - - - - - - 182 182 182 Consumer - - - - - - - - - - Total $ - $ - $ 8,660 $ 168 $ - $ - $ 11,185 $ 367 $ 20,380 $ 16,106 As of December 31, 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 Nonaccrual Loans Nonaccrual Loans with no related Allowance (Dollars in thousands) Commercial and industrial $ - $ 104 $ - $ 6 $ 1,383 $ 12 $ 6,479 $ - $ 7,984 $ 7,984 Energy - - - - - - 618 - 618 618 Commercial real estate - owner-occupied - - - - - - - - - - Commercial real estate - non-owner-occupied - 2,479 - - - - - - 2,479 2,479 Residential real estate - - - - - - - 191 191 191 Consumer - - - - - - - - - - Total $ - $ 2,583 $ - $ 6 $ 1,383 $ 12 $ 7,097 $ 191 $ 11,272 $ 11,272 For the Three Months Ended September 30, 2023 Commercial and Industrial Energy Commercial Real Estate - Owner- occupied Commercial Real Estate - Non-owner- occupied Residential Real Estate Consumer Total (Dollars in thousands) Allowance for Credit Losses: Beginning balance $ 28,929 $ 4,914 $ 6,361 $ 23,981 $ 3,268 $ 114 $ 67,567 PCD allowance for credit loss at acquisition 51 - 61 217 - - 329 Charge-offs (1,418) - - - - - (1,418) Recoveries 147 2 - - - - 149 Provision (release) 2,977 (573) 678 775 187 (15) 4,029 Day 1 CECL provision expense 58 - 194 643 5 - 900 Ending balance $ 30,744 $ 4,343 $ 7,294 $ 25,616 $ 3,460 $ 99 $ 71,556 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: Beginning balance $ 449 $ 496 $ 205 $ 6,496 $ 67 $ - $ 7,713 Provision (release) (264) (322) 59 (1,070) (3) - (1,600) Ending balance $ 185 $ 174 $ 264 $ 5,426 $ 64 $ - $ 6,113 For the Nine Months Ended September 30, 2023 Commercial and Industrial Energy Commercial Real Estate - Owner- occupied Commercial Real Estate - Non-owner- occupied Residential Real Estate Consumer Total (Dollars in thousands) Allowance for Credit Losses: Beginning balance $ 26,803 $ 4,396 $ 5,214 $ 21,880 $ 3,333 $ 149 $ 61,775 PCD allowance for credit loss at acquisition 51 - 61 217 - - 329 Charge-offs (3,798) - - - - (5) (3,803) Recoveries 151 139 - - - - 290 Provision (release) 7,479 (192) 1,825 2,876 122 (45) 12,065 Day 1 CECL provision expense 58 - 194 643 5 - 900 Ending balance $ 30,744 $ 4,343 $ 7,294 $ 25,616 $ 3,460 $ 99 $ 71,556 Allowance for Credit Losses on Off-Balance Sheet Credit Exposures: Beginning balance $ 319 $ 787 $ 221 $ 7,323 $ 35 $ 3 $ 8,688 Provision (release) (134) (613) 43 (1,897) 29 (3) (2,575) Ending balance $ 185 $ 174 $ 264 $ 5,426 $ 64 $ - $ 6,113 For the Quarter Ended September 30, 2023 Gross Charge-offs by Origination Year Gross Charge-offs 2023 2022 2021 2020 2019 2018 and Prior Revolving loans Revolving loans converted to term loans Gross Charge- offs (Dollars in thousands) Commercial and industrial $ 6 $ 7 $ - $ - $ - $ - $ 1,262 $ 143 $ 1,418 Energy - - - - - - - - - Commercial real estate - owner-occupied - - - - - - - - - Commercial real estate - non-owner-occupied - - - - - - - - - Residential real estate - - - - - - - - - Consumer - - - - - - - - - Total $ 6 $ 7 $ - $ - $ - $ - $ 1,262 $ 143 $ 1,418 For the Nine Months Ended September 30, 2023 Gross Charge-offs by Origination Year Gross Charge-offs 2023 2022 2021 2020 2019 2018 and Prior Revolving loans Revolving loans converted to term loans Gross Charge- offs (Dollars in thousands) Commercial and industrial $ 581 $ 7 $ 72 $ - $ - $ 1,358 $ 1,262 $ 518 $ 3,798 Energy - - - - - - - - - Commercial real estate - owner-occupied - - - - - - - - - Commercial real estate - non-owner-occupied - - - - - - - - - Residential real estate - - - - - - - - - Consumer - - - - - 5 - - 5 Total $ 581 $ 7 $ 72 $ - $ - $ 1,363 $ 1,262 $ 518 $ 3,803 As of September 30, 2023 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 $ 11,010 $ 2,149 $ 6,712 Energy Oil and natural gas properties 408 - 408 Commercial real estate - owner-occupied Commercial real estate properties 204 - 204 Commercial real estate - non-owner- occupied Commercial real estate properties 6,029 - 6,029 Residential real estate Residential real estate properties - - - Consumer Vehicles & other personal assets - - - $ 17,651 $ 2,149 $ 13,353 As of December 31, 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 $ 7,981 $ - $ 7,981 Energy Oil and natural gas properties 618 - 618 Commercial real estate - owner-occupied Commercial real estate properties - - - Commercial real estate - non-owner- occupied Commercial real estate properties 92 - 92 Residential real estate Residential real estate properties - - - Consumer Vehicles & other personal assets 39 22 - $ 8,728 $ 22 $ 8,689 September 30, 2023 Term Extension Amortized Cost Basis % of Loan Class (Dollars in thousands) Commercial and industrial $ 4,674 0.2 Commercial real estate - owner-occupied 4,569 1.0 Total Loans $ 9,243 September 30, 2023 Current (Dollars in thousands) Commercial and industrial $ 4,674 Commercial real estate - owner-occupied 4,569 Total Loans $ 9,243 September 30, 2023 Financial Effect Term Extension Commercial and industrial Added a weighted average 1.2 monthly payment amounts Commercial real estate - owner-occupied Added a weighted average 0.5 monthly payment amounts |