| Loans, Net and Allowance for Loan Losses | Loans, Net and Allowance for Credit Losses on Loans Loans, net, at September 30, 2021 and December 31, 2020, consisted of the following: September 30, December 31, 2021 2020 Commercial $ 2,999,980 $ 3,902,496 Real estate: Commercial 6,414,199 6,096,676 Commercial construction, land and land development 1,216,195 1,245,801 Residential 1,296,871 1,352,465 Single-family interim construction 350,112 326,575 Agricultural 82,278 85,014 Consumer 81,879 67,068 Total loans (1)(2) 12,441,514 13,076,095 Deferred loan fees, net (1) — (10,037) Allowance for credit losses (150,281) (87,820) Total loans, net (2) $ 12,291,233 $ 12,978,238 ____________ (1) Loan class amounts are shown at amortized cost, net of deferred loan fees of $11,336, in accordance with ASC 326 at September 30, 2021 and shown at recorded investment at December 31, 2020. (2) Excludes accrued interest receivable of $44,953 and $54,328 at September 30, 2021 and December 31, 2020, respectively, that is recorded in other assets on the accompanying consolidated balance sheets. Loans with carrying amounts of $6,842,932 and $6,743,350 at September 30, 2021 and December 31, 2020, respectively, were pledged to secure Federal Home Loan Bank borrowing capacity and Federal Reserve Bank discount window borrowing capacity. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. The Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short term loans may be made on an unsecured basis. Additionally, our commercial loan portfolio includes loans made to customers in the energy industry, which is a complex, technical and cyclical industry. Experienced bankers with specialized energy lending experience originate our energy loans. Companies in this industry produce, extract, develop, exploit and explore for oil and natural gas. Loans are primarily collateralized with proven producing oil and gas reserves based on a technical evaluation of these reserves. At September 30, 2021 and December 31, 2020, there were approximately $280,277 and $205,496, of energy related loans outstanding, respectively. The Company has a mortgage warehouse purchase program providing mortgage inventory financing for residential mortgage loans originated by mortgage banker clients across a broad geographic scale. Proceeds from the sale of mortgages are the primary source of repayment for warehouse inventory financing via approved investor takeout commitments. These loans typically have a very short duration ranging between a few days to 15 days. In some cases, loans to larger mortgage originators may be financed for up to 60 days. These loans are reported as commercial loans since the loans are secured by notes receivable, not real estate. As of September 30, 2021 and December 31, 2020, mortgage warehouse purchase loans outstanding totaled $977,800 and $1,453,797, respectively. With the passage of the CARES Act Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA), the Company has participated in originating loans to its customers through the program. PPP loans have terms of two Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors the diversification of the portfolio on a quarterly basis by type and geographic location. Management also tracks the level of owner occupied property versus non-owner occupied property. At September 30, 2021, the portfolio consisted of approximately 27% of owner occupied property. Land and commercial land development loans are underwritten using feasibility studies, independent appraisal reviews and financial analysis of the developers or property owners. Generally, borrowers must have a proven track record of success. Commercial construction loans are generally based upon estimates of cost and value of the completed project. These estimates may not be accurate. Commercial construction loans often involve the disbursement of substantial funds with the repayment dependent on the success of the ultimate project. Sources of repayment for these loans may be pre-committed permanent financing or sale of the developed property. The loans in this portfolio are geographically diverse and due to the increased risk are monitored closely by management and the board of directors on a quarterly basis. Residential real estate and single-family interim construction loans are underwritten primarily based on borrowers’ credit scores, documented income and minimum collateral values. Relatively small loan amounts are spread across many individual borrowers, which minimizes risk in the residential portfolio. In addition, management evaluates trends in past dues and current economic factors on a regular basis. Agricultural loans are collateralized by real estate and/or agricultural-related assets. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 80% and have amortization periods limited to twenty years. Agricultural non-real estate loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines to grain farmers to plant and harvest corn and soybeans. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. Agricultural loans carry significant credit risks as they involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Consumer loans represent less than 1% of the outstanding total loan portfolio. Collateral consists primarily of automobiles and other personal assets. Credit score analysis is used to supplement the underwriting process. Most of the Company’s lending activity occurs within the State of Texas, primarily in the north, central and southeast Texas regions and the State of Colorado, specifically along the Front Range area. As of September 30, 2021, loans in the Colorado region represented about 24% of the total portfolio. A large percentage of the Company’s portfolio consists of commercial and residential real estate loans. As of September 30, 2021 and December 31, 2020, there were no concentrations of loans related to a single industry in excess of 10% of total loans. On January 1, 2021, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) (ASC 326). Under ASC 326, the allowance for credit losses is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on the loans. Loans, or portions thereof, are charged off against the allowance when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. The amount of the allowance represents management's best estimate of current expected credit losses on loans considering available information relevant to assessing collectibility over the loans' contractual terms, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation that a troubled debt restructuring will be executed with an individual borrower, or the extension or renewal options are included in the borrower contract and are not unconditionally cancellable by the Company. The Company's allowance balance is estimated using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, credit quality, or term as well as for changes in environmental conditions, such as changes in unemployment rates, gross domestic product, property values or other relevant factors. The Company utilizes Moody’s Analytics economic forecast scenarios and assigns probability weighting to those scenarios which best reflect management’s views on the economic forecast. Management continually evaluates the allowance for credit losses based upon the factors noted above. Should any of the factors considered by management change, the Company’s estimate of credit losses could also change and would affect the level of future provision for credit losses. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While the calculation of the allowance for credit losses utilizes management’s best judgment and all the information available, the adequacy of the allowance for credit losses is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. The allowance for credit losses is measured on a collective basis for portfolios of loans when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. For determining the appropriate allowance for credit losses on a collective basis, the loan portfolio is segmented into pools based upon similar risk characteristics and a lifetime loss-rate model is utilized. For modeling purposes, loan pools include: commercial and industrial, energy, commercial real estate - construction/land development, commercial real estate - owner occupied, commercial real estate - non-owner occupied, agricultural, residential real estate, HELOCs, single-family interim construction, and consumer. Management periodically reassesses each pool to ensure the loans within the pool continue to share similar characteristics and risk profiles and to determine whether further segmentation is necessary. The measurement of expected credit losses is impacted by loan/borrower attributes and certain macroeconomic variables. Management has determined that they are reasonably able to forecast the macroeconomic variables used in the modeling processes with an acceptable degree of confidence for a total of two years then encompassing a reversion process whereby the forecasted macroeconomic variables are reverted to their historical mean utilizing a rational, systematic basis. Management qualitatively adjusts model results for risk factors that are not considered within the modeling processes but are nonetheless relevant in assessing the expected credit losses within the loan pools. These qualitative factor (Q-Factor) adjustments may increase or decrease management's estimate of expected credit losses by a calculated percentage or amount based upon the estimated level of risk. Loans exhibiting unique risk characteristics and requiring an individual allowance are generally identified at the servicing officer level based on review of weekly past due reports and/or the loan officer’s communication with borrowers. In addition, the status of past due loans are routinely discussed within each lending region as well as credit committee meetings to determine if classification is warranted. The Company’s internal loan review department has implemented an internal risk-based loan review process to identify potential internally classified loans that supplements the independent external loan review. External loan reviews cover a wide range of the loan portfolio, including large lending relationships, specifically targeted loan types, and if applicable recently acquired loan portfolios. As such, the external loan review generally covers loans exceeding $3,000 . These reviews include analysis of borrower’s financial condition, payment histories, review of loan documentation and collateral values to determine if a loan should be internally classified. Generally, once classified, an analysis is completed by the credit department to determine the amount of allocated allowance for credit loss required. Expected credit losses for collateral dependent loans, including loans where the borrower is experiencing financial difficulty but foreclosure is not probable, are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Prior to the adoption of ASU 2016-13, the allowance for credit losses on loans was a contra-asset valuation account established through a provision for loan losses charged to expense, which represented management’s best estimate of inherent losses that had been incurred within the existing portfolio of loans. The allowance for credit losses on loans included allowance allocations calculated in accordance with ASC Topic 310, Receivables, and allowance allocations calculated in accordance with ASC Topic 450, Contingencies. Following unprecedented declines caused by the pandemic and volatile energy prices, the Texas economy, specifically in the Company’s lending areas of north, central and southeast Texas economy continued to expand at a solid pace into the third quarter of 2021, though surging COVID-19 cases added uncertainty to outlooks. The Colorado economy grew at a moderate pace. The stronger sectors of the economy of late include manufacturing, transportation, nonfinancial services and residential real estate, while other sectors of the economy where growth slowed were those constrained by supply disruptions and labor shortages. Energy activity and agricultural conditions improved further. Activity in the single-family housing market moderated during the reporting period and sales were mostly solid but not as abundant as earlier in the year, partly due to seasonality. Overall, the economy is being impacted by the surging Delta variant, persistent labor and supply shortages, and rising costs, which are expected to dampen the recovery. Previous forecasts for a strong return of business travel and events this fall have been adjusted downward by the pandemic resurgence. The pandemic crisis has been impactful and the timing and magnitude of recovery cannot be predicted. The risk of loss associated with all segments of the portfolio could increase due to these factors. The economy and other risk factors are minimized by the Company’s underwriting standards, which include the following principles: 1) financial strength of the borrower including strong earnings, high net worth, significant liquidity and acceptable debt to worth ratio, 2) managerial business competence, 3) ability to repay, 4) loan to value, 5) projected cash flow and 6) guarantor financial statements, as applicable. The following is a summary of the activity in the allowance for credit losses on loans by class for the three and nine months ended September 30, 2021 and 2020: Commercial Commercial Real Estate Commercial Construction, Residential Single-Family Agricultural Consumer Unallocated Total Three months ended September 30, 2021 Balance at beginning of period $ 46,957 $ 67,696 $ 27,842 $ 3,638 $ 8,129 $ 86 $ 443 $ — $ 154,791 Provision for credit losses 2,190 (6,212) 915 (1,293) (66) (18) 73 — (4,411) Charge-offs (78) — — — — — (48) — (126) Recoveries 17 — — — — — 10 — 27 Balance at end of period $ 49,086 $ 61,484 $ 28,757 $ 2,345 $ 8,063 $ 68 $ 478 $ — $ 150,281 Nine months ended September 30, 2021 Balance at beginning of period $ 27,311 $ 36,698 $ 13,425 $ 6,786 $ 2,156 $ 337 $ 684 $ 423 $ 87,820 Impact of adopting ASC 326 12,775 29,108 22,008 (2,255) 7,179 (178) (334) (423) 67,880 Initial allowance on loans purchased with credit deterioration 4,328 7,640 927 140 — — — — 13,035 Provision for credit losses 8,466 (11,587) (7,477) (2,326) (1,272) (91) 256 — (14,031) Charge-offs (3,832) (375) (126) — — — (173) — (4,506) Recoveries 38 — — — — — 45 — 83 Balance at end of period $ 49,086 $ 61,484 $ 28,757 $ 2,345 $ 8,063 $ 68 $ 478 $ — $ 150,281 Three months ended September 30, 2020 Balance at beginning of period $ 25,498 $ 32,944 $ 12,932 $ 5,911 $ 1,998 $ 379 $ 431 $ (38) $ 80,055 Provision for credit losses 476 5,205 624 532 (152) (31) 211 755 7,620 Charge-offs (117) — — — — — (106) — (223) Recoveries 16 4 — — — — 19 — 39 Balance at end of period $ 25,873 $ 38,153 $ 13,556 $ 6,443 $ 1,846 $ 348 $ 555 $ 717 $ 87,491 Nine months ended September 30, 2020 Balance at beginning of period $ 12,844 $ 24,371 $ 8,714 $ 3,678 $ 1,606 $ 332 $ 231 $ (315) $ 51,461 Provision for credit losses 15,111 14,513 4,842 2,765 322 16 521 1,032 39,122 Charge-offs (2,170) (735) — — (82) — (306) — (3,293) Recoveries 88 4 — — — — 109 — 201 Balance at end of period $ 25,873 $ 38,153 $ 13,556 $ 6,443 $ 1,846 $ 348 $ 555 $ 717 $ 87,491 The Company will charge-off that portion of any loan which management considers a loss. Commercial and real estate loans are generally considered for charge-off when exposure beyond collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition. The following table presents loans that were evaluated for expected credit losses on an individual basis and the related specific credit loss allocations, by loan class as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Loan Balance - Specific Allocations Loan Balance - Specific Allocations Commercial $ 43,038 $ 19,365 $ 39,298 $ 8,281 Commercial real estate 40,235 1,955 21,848 243 Commercial construction, land and land development 1,365 581 32 — Residential real estate — — 2,550 — Single-family Interim construction — — — — Agricultural — — 613 — Consumer — — 42 — $ 84,638 $ 21,901 $ 64,383 $ 8,524 Nonperforming loans by loan class at September 30, 2021 (at amortized cost) and December 31, 2020 (at recorded investment), are summarized as follows: Commercial Commercial Commercial Construction, Residential Real Estate Single-Family Agricultural Consumer Total September 30, 2021 Nonaccrual loans (1) $ 44,712 $ 34,291 $ 25 $ 1,460 $ — $ — $ 43 $ 80,531 Loans past due 90 days and still accruing 77 — — 201 — — 2 280 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) — 1,738 — 165 — — — 1,903 $ 44,789 $ 36,029 $ 25 $ 1,826 $ — $ — $ 45 $ 82,714 December 31, 2020 (2) Nonaccrual loans $ 25,898 $ 20,040 $ 32 $ 2,372 $ — $ 613 $ 42 $ 48,997 Loans past due 90 days and still accruing 433 — — — — — — 433 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) — 1,808 — 178 — — — 1,986 $ 26,331 $ 21,848 $ 32 $ 2,550 $ — $ 613 $ 42 $ 51,416 ____________ (1) There are $552 in loans on nonaccrual without an allowance for credit loss as of September 30, 2021. Additionally, no interest income was recognized on nonaccrual loans. No significant amounts of accrued interest was reversed during the three and nine months ended September 30, 2021. (2) Excluded loans acquired with deteriorated credit quality under prior GAAP. The accrual of interest is discontinued on a loan when management believes that, after considering collection efforts and other factors, the borrower's financial condition is such that collection of interest is doubtful, as well as when required by regulatory provisions. Regulatory provisions would typically require the placement of a loan on non-accrual status if 1) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or 2) full payment of principal and interest is not expected. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. Cash collections on nonaccrual loans are generally credited to the loan receivable balance, and no interest income is recognized on those loans until the principal balance has been collected. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The restructuring of a loan is considered a “troubled debt restructuring” (TDR) if both 1) the borrower is experiencing financial difficulties and 2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extending amortization and other actions intended to minimize potential losses. Modifications primarily relate to extending the amortization periods of the loans and interest rate concessions. The modifications during the reported periods did not materially impact the Company’s determination of the allowance for credit losses. The amortized cost basis and recorded investment in troubled debt restructurings, including those on nonaccrual, was $2,971 and $2,564 as of September 30, 2021 and December 31, 2020, respectively. Following is a summary of loans modified under troubled debt restructurings during the three and nine months ended September 30, 2021 and 2020: Commercial Commercial Commercial Construction, Residential Single-Family Agricultural Consumer Total Troubled debt restructurings during the three months ended September 30, 2021 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the nine months ended September 30, 2021 Number of contracts 2 — — — — — 1 3 Pre-restructuring outstanding recorded investment $ 1,789 $ — $ — $ — $ — $ — $ 6 $ 1,795 Post-restructuring outstanding recorded investment $ 570 $ — $ — $ — $ — $ — $ 6 $ 576 Troubled debt restructurings during the three months ended September 30, 2020 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the nine months ended September 30, 2020 Number of contracts — 1 — — — — — 1 Pre-restructuring outstanding recorded investment $ — $ 1,517 $ — $ — $ — $ — $ — $ 1,517 Post-restructuring outstanding recorded investment $ — $ 1,517 $ — $ — $ — $ — $ — $ 1,517 At September 30, 2021 and 2020, there were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the three and nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and 2020, the Company had no commitments to lend additional funds to any borrowers with loans whose terms have been modified under troubled debt restructurings. Under ASC Subtopic 310-40 and federal banking agencies interagency guidance, certain short-term loan modifications made on a good faith basis in response to COVID-19 (as defined by the guidance) are not considered TDRs. Additionally, under section 4013 of the CARES Act, and as amended, banks may elect to suspend the requirement for certain loan modifications to be categorized as a TDR. In response to the COVID-19 pandemic, the Company has implemented prudent modifications allowing for primarily short-term payment deferrals or other payment relief to borrowers with pandemic-related economic hardships, where appropriate, that complies with the above guidance. As such, the Company's TDR loans noted above do not include loans that are modifications to borrowers impacted by COVID-19. As of September 30, 2021, the amount of loans remaining in COVID-19 related deferment was not significant. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents information regarding the aging of past due loans by loan class as of September 30, 2021 (at amortized cost) and as of December 31, 2020 (at recorded investment): Loans Loans Total Past Current Total September 30, 2021 Commercial $ 704 $ 31,792 $ 32,496 $ 2,967,484 $ 2,999,980 Commercial real estate 19,706 16,540 36,246 6,377,953 6,414,199 Commercial construction, land and land development 868 — 868 1,215,327 1,216,195 Residential real estate 2,267 529 2,796 1,294,075 1,296,871 Single-family interim construction 269 — 269 349,843 350,112 Agricultural 595 — 595 81,683 82,278 Consumer 99 40 139 81,740 81,879 $ 24,508 $ 48,901 $ 73,409 $ 12,368,105 $ 12,441,514 December 31, 2020 (1) Commercial $ 3,243 $ 13,227 $ 16,470 $ 3,846,810 $ 3,863,280 Commercial real estate 2,434 16,790 19,224 5,921,723 5,940,947 Commercial construction, land and land development 19 — 19 1,230,524 1,230,543 Residential real estate 5,169 1,028 6,197 1,341,587 1,347,784 Single-family interim construction — — — 326,575 326,575 Agricultural — 1 1 84,896 84,897 Consumer 86 41 127 67,156 67,283 10,951 31,087 42,038 12,819,271 12,861,309 Acquired with deteriorated credit quality 624 3,219 3,843 210,943 214,786 $ 11,575 $ 34,306 $ 45,881 $ 13,030,214 $ 13,076,095 ____________ (1) Presented under prior GAAP. The Company’s internal classified report is segregated into the following categories: 1) Pass/Watch, 2) Special Mention, 3) Substandard and 4) Doubtful. The loans placed in the Pass/Watch category reflect the Company’s opinion that the loans reflect potential weakness that requires monitoring on a more frequent basis. The loans in the Special Mention category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk and warrant extra attention. These loans are reviewed monthly by officers and senior management to determine if a change in category is warranted. The loans placed in the Substandard category are considered to be potentially inadequately protected by the current debt service capacity of the borrower and/or the pledged collateral. These credits, even if apparently protected by collateral value, have shown weakness related to adverse financial, managerial, economic, market or political conditions, which may jeopardize repayment of principal and interest and may be considered impaired. There is a possibility that some future loss could be sustained by the Company if such weakness is not corrected. The Doubtful category includes loans that are in default or principal exposure is probable and the possibility of loss is extremely high. Management considers the guidance in ASC 310-20 when determining whether a modification, extension or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are re-underwritten at the point of renewal and considered current period originations for purposes of the table below. The following summarizes the amortized cost basis of loans by year of origination/renewal and credit quality indicator by class of loan as of September 30, 2021: Revolving Loans Converted to Term Loans Term Loans by Year of Origination or Renewal Revolving Loans September 30, 2021 2021 2020 2019 2018 2017 Prior Total Commercial Pass $ 500,792 $ 205,018 $ 127,779 $ 102,993 $ 107,046 $ 173,621 $ 1,589,766 $ 4,971 $ 2,811,986 Pass/Watch 405 3,171 761 14,267 10,224 7,398 26,533 3,538 66,297 Special Mention 1,852 1,404 11,620 767 4,371 15 3,684 — 23,713 Substandard 16,647 3,110 35,195 5,927 3,512 7,073 16,620 3 88,087 Doubtful — — — — — — 9,897 — 9,897 Total commercial $ 519,696 $ 212,703 $ 175,355 $ 123,954 $ 125,153 $ 188,107 $ 1,646,500 $ 8,512 $ 2,999,980 Commercial real estate Pass $ 1,481,214 $ 1,278,477 $ 885,209 $ 706,642 $ 585,905 $ 724,951 $ 63,240 $ 1,299 $ 5,726,937 Pass/Watch 63,129 25,453 63,473 79,563 19,205 86,177 452 1,358 338,810 Special Mention 24,537 29,042 40,808 69,181 41,044 40,794 — — 245,406 Substandard 24,042 31,148 2,338 11,910 1,571 30,968 1,069 — 103,046 Doubtful — — — — — — — — — Total commercial real estate $ 1,592,922 $ 1,364,120 $ 991,828 $ 867,296 $ 647,725 $ 882,890 $ 64,761 $ 2,657 $ 6,414,199 Commercial construction, land and land development Pass $ 484,572 $ 292,360 $ 207,346 $ 108,119 $ 21,627 $ 16,240 $ 12,655 $ — $ 1,142,919 Pass/Watch 19,886 1,472 6,104 4,280 — 87 — — 31,829 Special Mention — 9,000 — — 1,928 — — — 10,928 Substandard 15,379 — 417 12,741 29 1,953 — — 30,519 Doubtful — — — — — — — — — Total commercial construction, land and land development $ 519,837 $ 302,832 $ 213,867 $ 125,140 $ 23,584 $ 18,280 $ 12,655 $ — $ 1,216,195 Residential real estate Pass $ 310,811 $ 290,780 $ 212,659 $ 127,857 $ 97,097 $ 179,412 $ 56,588 $ 2,309 $ 1,277,513 Pass/Watch 1,684 497 1,409 411 2,433 4,321 169 — 10,924 Special Mention 659 462 — 130 253 1,059 231 — 2,794 Substandard 645 174 385 469 795 3,118 54 — 5,640 Doubtful — — — — — — — — — Total residential real estate $ 313,799 $ 291,913 $ 214,453 $ 128,867 $ 100,578 $ 187,910 $ 57,042 $ 2,309 $ 1,296,871 Revolving Loans Converted to Term Loans Term Loans by Year of Origination or Renewal Revolving Loans September 30, 2021 2021 2020 2019 2018 2017 Prior Total Single-family interim construction Pass $ 231,771 $ 102,697 $ 12,021 $ 329 $ — $ — $ 3,294 $ — $ 350,112 Pass/Watch — — — — — — — — — Special Mention — — — — — — — — — Substandard — — — — — — — — — Doubtful — — — — — — — — — Total single-family interim construction $ 231,771 $ 102,697 $ 12,021 $ 329 $ — $ — $ 3,294 $ — $ 350,112 Agricultural Pass $ 17,438 $ 16,781 $ 4,576 $ 9,183 $ 12,451 $ 5,718 $ 8,846 $ — $ 74,993 Pass/Watch — 552 1,542 57 980 — 4,147 — 7,278 Special Mention — — — — — — — — — Substandard — — — — — 7 — — 7 Doubtful — — — — — — — — — Total agricultural $ 17,438 $ 17,333 $ 6,118 $ 9,240 $ 13,431 $ 5,725 $ 12,993 $ — $ 82,278 Consumer Pass $ 10,072 $ 10,553 $ 2,991 $ 878 $ 440 $ 219 $ 56,614 $ 46 $ 81,813 Pass/Watch — — — — 2 — — — 2 Special Mention — — — — — — — — — Substandard 5 30 — — 10 19 — — 64 Doubtful — — — — — — — — — Total consumer $ 10,077 $ 10,583 $ 2,991 $ 878 $ 452 $ 238 $ 56,614 $ 46 $ 81,879 A summary of loans at recorded investment by credit quality indicator by class presented under prior GAAP as of December 31, 2020, is as follows: Pass Pass/ Special Mention Substandard Doubtful Total December 31, 2020 Commercial $ 3,700,856 $ 55,960 $ 38,186 $ 97,403 $ 10,091 $ 3,902,496 Commercial real estate 5,379,801 306,884 317,580 92,411 — 6,096,676 Commercial construction, land and la |
