v3.25.2
Loans and Allowances for Credit Losses
 6 Months Ended
Jun. 30, 2025
Loans and Leases Receivable, Net Amount [Abstract]  
Loans [Text Block] Loans and Allowances for Credit Losses
Loans

Loans are either secured or unsecured based on the type of loan and the financial condition of the borrower. Repayment is generally expected from cash flow or proceeds from the sale of selected assets of the borrower. BOK Financial is exposed to risk of loss on loans due to the borrower's difficulties, which may arise from any number of factors, including problems within the respective industry or local economic conditions. Access to collateral, in the event of borrower default, is reasonably assured through adherence to applicable lending laws and through sound lending standards and credit review procedures. Accounting policies for all loans, excluding residential mortgage loans guaranteed by U.S. government agencies, are as follows:
Interest is accrued at the applicable interest rate on the principal amount outstanding. Loans are placed on nonaccruing status when, in the opinion of management, full collection of principal or interest is uncertain. Internally risk graded loans are individually evaluated for nonaccruing status quarterly. Non-risk graded loans are generally placed on nonaccruing status when more than 90 days past due or within 60 days of being notified of the borrower's bankruptcy filing. Interest previously accrued but not collected is charged against interest income when the loan is placed on nonaccruing status. Accrued but not paid interest receivable is included in Receivables in the Consolidated Balance Sheets. Payments on nonaccruing loans are applied to principal or recognized as interest income, according to management's judgment as to the collectability of principal. Loans may be returned to accruing status when, in the opinion of management, full collection of principal and interest, including principal previously charged off, is probable based on improvements in the borrower's financial condition or a sustained period of performance.

For loans acquired with no evidence of credit deterioration, discounts are accreted on either an individual basis for loans with unique characteristics or on a pool basis for groups of homogeneous loans. Accretion is discontinued when a loan with an individually attributed discount is placed on nonaccruing status.

Modifications of loans to existing borrowers generally consist of interest rate reductions, extension of payment terms, or a combination of these. Modifications may arise either voluntarily through negotiations with the borrower or involuntarily through court order. Payment deferrals up to six months are generally considered to be short-term modifications. Generally, principal and accrued but unpaid interest are not voluntarily forgiven. A change to the allowance for credit losses is generally not recorded upon modification because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance methodology.

Performing loans may be renewed under the current collateral value, debt service ratio, and other underwriting standards. Nonaccruing loans may be renewed and will remain classified as nonaccruing. 

Occasionally, loans, other than residential mortgage loans, may be held for sale in order to manage credit concentration. These loans are carried at the lower of cost or fair value with gains or losses recognized in Other gains (losses), net in the Consolidated Statements of Earnings.

All loans are charged off when the loan balance or a portion of the loan balance is no longer supported by the paying capacity of the borrower or when the required cash flow is reduced in a modification. The charge-off amount is determined through a quarterly evaluation of available cash resources and collateral values. Internally risk graded loans are evaluated quarterly, and charge-offs are taken in the quarter in which the loss is identified. Non-risk graded loans that are past due between 60 days and 180 days, based on the loan product type, are charged off. Loans to borrowers whose personal obligation has been discharged through Chapter 7 bankruptcy proceedings are charged off within 60 days of notice of the bankruptcy filing, regardless of payment status.

Loan origination and commitment fees and direct loan acquisition and origination costs are deferred and amortized as an adjustment to yield over the life of the loan or over the commitment period, as applicable. Amortization does not anticipate loan prepayments. Net unamortized fees are recognized in full at time of payoff.

Qualifying residential mortgage loans guaranteed by U.S. government agencies have been sold into GNMA pools. Under certain performance conditions specified in government programs, the Company may have the right, but not the obligation to repurchase loans from GNMA pools. These loans no longer qualify for sale accounting and are recognized in the Consolidated Balance Sheets. We do not expect to receive all principal and interest based on the loan's contractual terms. A portion of the principal balance continues to be guaranteed; however, interest accrues at a curtailed rate as specified in the programs. The carrying value of these loans is reduced based on an estimate of the expected cash flows discounted at the original note rate plus a liquidity spread. Guaranteed loans may be modified in accordance with U.S. government agency guidelines. Interest continues to accrue based on the modified rate. Guaranteed loans may either be resold into GNMA pools after a performance period specified by the programs or foreclosed and conveyed to the guarantors.

Loans are disaggregated into portfolio segments and further disaggregated into classes. The portfolio segment is the level at which the Company develops and documents a systematic method for determining its allowance for credit losses. Classes are a further disaggregation of portfolio segments based on the risk characteristics of the loans and the Company's method for monitoring and assessing credit risk. 
Portfolio segments of the loan portfolio are as follows (in thousands):
 June 30, 2025December 31, 2024
Fixed
Rate		Variable
Rate		Non-accrualTotalFixed
Rate		Variable
Rate		Non-accrualTotal
Commercial$3,445,595 $10,898,430 $40,157 $14,384,182 $3,450,238 $11,565,251 $14,647 $15,030,136 
Commercial real estate
684,294 4,830,222 6,925 5,521,441 668,532 4,380,015 9,905 5,058,452 
Loans to individuals2,817,648 1,536,695 32,245 4,386,588 2,620,936 1,383,027 22,173 4,026,136 
Total$6,947,537 $17,265,347 $79,327 $24,292,211 $6,739,706 $17,328,293 $46,725 $24,114,724 

Credit Commitments
 
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of conditions established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. At June 30, 2025, outstanding commitments totaled $14.7 billion. Because some commitments are expected to expire before being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. BOK Financial uses the same credit policies in making commitments as it does loans.

The amount of collateral obtained, if deemed necessary, is based upon management's credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Because the credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan commitments, BOK Financial uses the same credit policies in evaluating the creditworthiness of the customer. Additionally, BOK Financial uses the same evaluation process in obtaining collateral on standby letters of credit as it does for loan commitments. The term of these standby letters of credit is defined in each commitment and typically corresponds with the underlying loan commitment. At June 30, 2025, outstanding standby letters of credit totaled $702 million. 

Allowances for Credit Losses and Accrual for Off-balance Sheet Credit Risk from Unfunded Loans Commitments

The allowance for loan losses and accrual for off-balance sheet credit risk from unfunded loan commitments represent the portion of the amortized cost basis of loans that we do not expect to collect over the asset's contractual life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions. The appropriateness of the allowance for credit losses, including industry and product adjustments, is assessed quarterly by a senior management Allowance Committee. This review is based on an ongoing evaluation of the estimated expected credit losses in the portfolio and on unused commitments to provide financing. A well-documented methodology has been developed and is applied by an independent Credit Administration department to assure consistency across the Company.

The allowance for loan losses consists of specific allowances attributed to certain individual loans, generally nonaccruing loans, with dissimilar risk characteristics that have not yet been charged down to amounts we expect to recover and general allowances for estimated credit losses on pools of loans that share similar risk characteristics.

When full collection of principal or interest is uncertain, the loan's risk characteristics have changed and we exclude the loan from the general allowance pool, typically designating it as nonaccruing. For these loans, a specific allowance reflects the expected credit loss.
We measure specific allowances for loans excluded from the general allowance pool by an evaluation of estimated future cash flows discounted at the loan's initial effective interest rate or the fair value of collateral for certain collateral dependent loans. For a non-collateral dependent loan, the specific allowance is the amount by which the loan's amortized cost basis exceeds its net realizable value. We measure the specific allowance for collateral dependent loans as the amount by which the loan's amortized cost basis exceeds its fair value. When repayment is expected to be provided substantially through the sale of collateral, we deduct estimated selling costs from the collateral's fair value. Generally, for real property held as collateral for loans, third-party appraisals that conform to Uniform Standards of Professional Appraisal Practice serve as the basis for the fair value of real property held as collateral. These appraised values are on an "as-is" basis and generally are not adjusted by the Company. We obtain updated appraisals at least annually or more frequently if market conditions indicate collateral values may have declined. For energy loans, our internal staff of engineers generally determines collateral value of mineral rights based on projected cash flows from proven oil and gas reserves under existing economic and operating conditions. For real property held as collateral for other loans, third-party appraisals that conform to Uniform Standards of Professional Appraisal Practice generally serve as the basis for the fair value. These appraised values are on an "as-is" basis and generally are not adjusted by the Company. We obtain updated appraisals at least annually or more frequently if market conditions indicate collateral values may have declined. Our special assets staff generally determines the value of other collateral based on projected liquidation cash flows under current market conditions. We evaluate collateral values and available cash resources quarterly. Historical statistics may be used to estimate specific allowances in limited situations, such as when a collateral dependent loan is removed from the general allowance pool near the end of a reporting period until an appraisal of collateral value is received or a full assessment of future cash flows is completed.

General allowances estimate expected credit losses on pools of loans sharing similar risk characteristics that are expected to occur over the loan's estimated remaining life. The loan's estimated remaining life represents the contractual term adjusted for amortization, estimates of prepayments, and borrower-owned extension options. Approximately 90% of the committed dollars in the loan portfolio is risk graded loans with general allowance model inputs that include probability of default, loss given default, and exposure at default. Probability of default is based on the migration of loans from performing to nonperforming using historical life of loan analysis periods. Loss given default is based on the aggregate losses incurred, net of estimated recoveries. Exposure at default represents an estimate of the outstanding amount of credit exposure at the time a default may occur.

Charge-off migration is used to calculate the general allowance for the majority of non-risk graded loans to individuals. The expected credit loss on less than 10% of the committed dollars in the portfolio is calculated using charge-off migration.

The expected credit loss on approximately 1% of the committed dollars in the portfolio is calculated using a non-modeled approach. Specifically, the calculation applies a long-term net charge-off rate to the loan balances, adjusted for the weighted average remaining maturity of each portfolio.
    
In estimating the expected credit losses for general allowances on performing risk-graded loans, each portfolio class is assigned relevant economic loss drivers which best explain variations in portfolio net loss rates. The probability of default estimates for each portfolio class are adjusted for current and forecasted economic conditions. The result is applied to the exposure at default and loss given default to calculate the lifetime expected credit loss estimate. Selection of relevant economic loss drivers is re-evaluated periodically and involves statistical analysis as well as management judgment. The unemployment rate factors significantly in the allowance for loan losses calculation affecting commercial and loans to individuals segments. Other primary factors impacting the commercial portfolio include BBB corporate spreads, real gross domestic product growth rate, and energy commodity prices. The primary commercial real estate variables are vacancy rate and BBB corporate spreads. In addition to the unemployment rate, the forecast for loans to individuals is tied to a home price index. The forecasts may include regional economic factors when localized conditions diverge from national conditions.

An Economic Forecast Committee, consisting of senior management with members largely independent of the allowance process, develops a twelve-month forward-looking forecast for the relevant economic loss drivers. Management develops these forecasts based on external data as well as a view of future economic conditions which may include adjustments for regional conditions. The forecast includes three economic scenarios and probability weights for each scenario. The base forecast represents management's view of the most likely outcome, while the downside forecast reflects reasonably possible worsening economic conditions, and the upside forecast projects reasonably possible improving conditions.

At the end of the one-year reasonable and supportable forecast period, we transition from shorter-term expected losses to long-term loss averages for the loan's estimated remaining life. The difference between short-term loss forecasts and long-term loss averages is run-off over the reversion horizon, up to three years, depending on the forecasted economic scenarios.
General allowances also consider the estimated impact of factors that are not captured in the modeled results or historical experience. These factors may increase or decrease modeled results by amounts determined by the Allowance Committee. Factors not captured in modeled results or historical experience may include for example, new lines of business, market conditions that have not been previously encountered, observed changes in credit risk that are not yet reflected in macro-economic factors, or economic conditions that impact loss given default assumptions.

The accrual for off-balance sheet credit risk is maintained at a level that is appropriate to cover estimated losses associated with credit instruments that are not currently recognized as assets such as loan commitments, standby letters of credit, or guarantees that are not unconditionally cancelable by the bank. This accrual is included in other liabilities in the Consolidated Balance Sheets. The appropriateness of the accrual is determined in the same manner as the allowance for loan losses, with the added consideration of commitment usage over the remaining life for those loans that the bank can not unconditionally cancel.

A provision for credit losses is charged against or credited to earnings in amounts necessary to maintain an appropriate allowance for credit losses. Recoveries of loans previously charged off are added to the allowance when received.

The activity in the allowance for loan losses and the allowance for off-balance sheet credit losses related to loan commitments and standby letters of credit is summarized as follows (in thousands):
Three Months Ended
June 30, 2025
 CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:    
Beginning balance$143,505 $93,724 $41,365 $278,594 
Provision for loan losses744 (8,501)6,773 (984)
Loans charged off(35)(126)(1,152)(1,313)
Recoveries of loans previously charged off
184 10 558 752 
Ending balance$144,398 $85,107 $47,544 $277,049 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$16,167 $33,461 $2,460 $52,088 
Provision for off-balance sheet credit risk
828 97 (21)904 
Ending balance$16,995 $33,558 $2,439 $52,992 
Six Months Ended
June 30, 2025
 CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:    
Beginning balance$145,153 $91,072 $43,810 $280,035 
Provision for loan losses(111)(6,034)4,825 (1,320)
Loans charged off(1,120)(126)(2,358)(3,604)
Recoveries of loans previously charged off
476 195 1,267 1,938 
Ending balance$144,398 $85,107 $47,544 $277,049 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$18,046 $31,959 $1,635 $51,640 
Provision for off-balance sheet credit risk
(1,051)1,599 804 1,352 
Ending balance$16,995 $33,558 $2,439 $52,992 
Three Months Ended
June 30, 2024
 CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:    
Beginning balance$146,267 $97,479 $37,877 $281,623 
Provision for loan losses10,441 (1,042)3,749 13,148 
Loans charged off(6,391)(205)(1,344)(7,940)
Recoveries of loans previously charged off
420 24 551 995 
Ending balance$150,737 $96,256 $40,833 $287,826 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$17,790 $27,865 $1,664 $47,319 
Provision for off-balance sheet credit risk
(474)(4,551)42 (4,983)
Ending balance$17,316 $23,314 $1,706 $42,336 
Six Months Ended
June 30, 2024
CommercialCommercial Real EstateLoans to IndividualsTotal
Allowance for loan losses:
Beginning balance$141,232 $94,718 $41,173 $277,123 
Provision for loan losses18,752 2,953 1,403 23,108 
Loans charged off(10,631)(1,455)(2,914)(15,000)
Recoveries of loans previously charged off1,384 40 1,171 2,595 
Ending balance$150,737 $96,256 $40,833 $287,826 
Allowance for off-balance sheet credit risk from unfunded loan commitments:
Beginning balance$19,762 $27,439 $1,776 $48,977 
Provision for off-balance sheet credit risk(2,446)(4,125)(70)(6,641)
Ending balance$17,316 $23,314 $1,706 $42,336 
No provision for credit losses was necessary for the second quarter of 2025, primarily due to further improvements in portfolio credit quality offset by the impact of loan growth during the quarter.

The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at June 30, 2025, is as follows (in thousands):
 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$14,344,025 $140,674 $40,157 $3,724 $14,384,182 $144,398 
Commercial real estate5,514,516 85,107 6,925 — 5,521,441 85,107 
Loans to individuals4,354,343 47,544 32,245 — 4,386,588 47,544 
Total$24,212,884 $273,325 $79,327 $3,724 $24,292,211 $277,049 
The allowance for loan losses and recorded investment of the related loans by portfolio segment for each measurement method at December 31, 2024, is as follows (in thousands):

 Collectively Measured
for General Allowances		Individually Measured
for Specific Allowances		Total
 Recorded InvestmentRelated AllowanceRecorded InvestmentRelated AllowanceRecorded InvestmentRelated
Allowance
Commercial$15,015,489 $144,877 $14,647 $276 $15,030,136 $145,153 
Commercial real estate5,048,547 91,072 9,905 — 5,058,452 91,072 
Loans to individuals4,003,963 43,810 22,173 — 4,026,136 43,810 
Total$24,067,999 $279,759 $46,725 $276 $24,114,724 $280,035 

Credit Quality Indicators

The Company utilizes risk grading as primary credit quality indicators as it influences the probability of default which is a key attribute in the expected credit losses calculation. Substantially all commercial as well as commercial real estate loans and certain loans to individuals are risk graded based on a quarterly evaluation of the borrowers' ability to repay the loans. Certain commercial loans and most loans to individuals are small, homogeneous pools that are not risk-graded. The credit quality of these loans is based on past due days in accordance with regulatory guidelines.

We have included in the credit quality indicator "pass" loans that are in compliance with the original terms of the agreement and currently exhibit no factors that cause management to have doubts about the borrowers' ability to remain in compliance with the original terms of the agreement, which is consistent with the regulatory guideline of "pass." This also includes past due residential mortgages that are guaranteed by agencies of the U.S. government that continue to accrue interest based on criteria of the guarantors' programs.

Other loans especially mentioned ("Special Mention") are currently performing in compliance with the original terms of the agreement but may have a potential weakness that deserves management's close attention, consistent with regulatory guidelines. Non-graded loans 30 to 59 days past due are categorized as Special Mention.

The risk grading process identifies certain loans that have a well-defined weakness (for example, inadequate debt service coverage or liquidity or marginal capitalization; repayment may depend on collateral or other risk mitigation) that may jeopardize liquidation of the debt and represent a greater risk due to deterioration in the financial condition of the borrower. This is consistent with the regulatory guideline for "substandard." Because the borrowers are still performing in accordance with the original terms of the loan agreements, these loans remain on accruing status. Non-graded loans 60 to 89 days past due are categorized as Accruing Substandard.

Nonaccruing loans represent loans for which full collection of principal and interest is uncertain. This includes certain loans considered "substandard" and all loans considered "doubtful" by regulatory guidelines. Non-graded loans 90 or more days past due are categorized as Nonaccrual.

The probability of default is lowest for pass graded loans and increases for Special Mention and Accruing Substandard.

Vintage represents the year of origination, except for revolving loans which are considered in aggregate. Loans that were once revolving but have converted to term loans without additional underwriting appear in a separate vintage column.
The following table summarizes the Company’s loan portfolio at June 30, 2025, by the risk grade categories and vintage (in thousands): 
Origination Year
20252024202320222021PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Healthcare
Pass$364,559 $530,397 $468,105 $839,066 $392,630 $772,396 $197,981 $13 $3,565,147 
Special Mention— — — 64,388 103 3,315 214 — 68,020 
Accruing Substandard— — 37,806 5,132 5,215 98,852 21 — 147,026 
Nonaccrual— — 15,665 124 454 12,305 195 — 28,743 
Total healthcare364,559 530,397 521,576 908,710 398,402 886,868 198,411 13 3,808,936 
Services
Pass218,684 538,894 595,308 412,456 343,648 695,385 794,189 382 3,598,946 
Special Mention— — 3,283 — 937 14,036 3,054 — 21,310 
Accruing Substandard4,020 234 2,313 684 1,218 8,529 9,851 373 27,222 
Nonaccrual495 — 47 898 198 152 9,539 — 11,329 
Total services223,199 539,128 600,951 414,038 346,001 718,102 816,633 755 3,658,807 
Loans charged off, year-to-date— — — — — — 492 21 513 
Energy
Pass93,810 87,071 39,394 11,435 2,437 22,107 2,456,182 — 2,712,436 
Special Mention— — — — — — 22,237 — 22,237 
Nonaccrual— — — — — 40 — — 40 
Total energy93,810 87,071 39,394 11,435 2,437 22,147 2,478,419 — 2,734,713 
Loans charged off, year-to-date— — — — — — 94 — 94 
General business
Pass491,792 533,585 457,383 224,337 162,742 359,982 1,880,453 1,892 4,112,166 
Special Mention457 2,595 1,424 2,020 — — 6,119 43 12,658 
Accruing Substandard558 2,267 8,015 29,916 2,033 6,458 7,589 21 56,857 
Nonaccrual— — — — 1 10 — 34 45 
Total general business492,807 538,447 466,822 256,273 164,776 366,450 1,894,161 1,990 4,181,726 
Loans charged off, year-to-date— — 132 — — 6 367 8 513 
Total commercial1,174,375 1,695,043 1,628,743 1,590,456 911,616 1,993,567 5,387,624 2,758 14,384,182 
Commercial real estate:
Pass366,111 670,413 567,448 2,011,168 715,266 986,490 118,824 — 5,435,720 
Special Mention— — 233 — 29,324 — — — 29,557 
Accruing Substandard— 488 — 7,336 — 41,415 — — 49,239 
Nonaccrual— — — — — 6,925 — — 6,925 
Total commercial real estate366,111 670,901 567,681 2,018,504 744,590 1,034,830 118,824 — 5,521,441 
Loans charged off, year-to-date— — — 126 — — — — 126 
Origination Year
20252024202320222021PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Loans to individuals:
Residential mortgage
Pass309,071 455,755 305,393 267,128 301,090 500,039 422,935 25,782 2,587,193 
Special Mention— 318 147 156 29 109 1,548 31 2,338 
Accruing Substandard— — — — — 1 495 — 496 
Nonaccrual— 294 2,180 2,397 1,160 9,872 4,304 447 20,654 
Total residential mortgage309,071 456,367 307,720 269,681 302,279 510,021 429,282 26,260 2,610,681 
Loans charged off, year-to-date— — 48 — — 57 130 — 235 
Residential mortgage guaranteed by U.S. government agencies
Pass— 2,399 5,659 8,022 2,741 122,654 — — 141,475 
Nonaccrual— — — — — 6,978 — — 6,978 
Total residential mortgage guaranteed by U.S. government agencies— 2,399 5,659 8,022 2,741 129,632 — — 148,453 
Personal
Pass176,927 239,541 198,752 155,568 105,304 239,385 492,130 341 1,607,948 
Special Mention— 19 — 9 822 6 5,869 — 6,725 
Accruing Substandard— 23 8,017 — — 128 — — 8,168 
Nonaccrual— — 4,596 11 4 2 — — 4,613 
Total personal176,927 239,583 211,365 155,588 106,130 239,521 497,999 341 1,627,454 
Loans charged off, year-to-date1
2,024 58 — 11 — 5 25 — 2,123 
Total loans to individuals485,998 698,349 524,744 433,291 411,150 879,174 927,281 26,601 4,386,588 
Total loans$2,026,484 $3,064,293 $2,721,168 $4,042,251 $2,067,356 $3,907,571 $6,433,729 $29,359 $24,292,211 
1    Includes charge-offs on deposit overdrafts, which are generally charged off at 60 days past due.
The following table summarizes the Company's loan portfolio at December 31, 2024, by the risk grade categories and vintage (in thousands): 
Origination Year
20242023202220212020PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Commercial:
Healthcare
Pass$539,305 $544,103 $896,042 $481,816 $344,609 $644,441 $249,793 $10 $3,700,119 
Special Mention— 15,000 64,895 110 — 32,555 255 — 112,815 
Accruing Substandard— 38,180 5,253 15,529 51,134 29,151 1,635 — 140,882 
Nonaccrual— — 96 463 — 13,158 — — 13,717 
Total healthcare539,305 597,283 966,286 497,918 395,743 719,305 251,683 10 3,967,533 
Loans charged off, year-to-date— — — — — 7,240 — — 7,240 
Services
Pass629,978 625,969 422,015 404,949 187,324 570,775 745,853 379 3,587,242 
Special Mention— 3,324 123 1,537 — 11,796 17,923 — 34,703 
Accruing Substandard— 675 9,030 20 1,217 7,750 1,399 400 20,491 
Nonaccrual— — — — — — 767 — 767 
Total services629,978 629,968 431,168 406,506 188,541 590,321 765,942 779 3,643,203 
Loans charged off, year-to-date— — — — 22 80 9 — 111 
Energy
Pass148,972 46,094 39,050 2,621 6,488 16,989 2,985,161 — 3,245,375 
Accruing Substandard— — — — — — 9,300 — 9,300 
Nonaccrual— — — — — 49 — — 49 
Total energy148,972 46,094 39,050 2,621 6,488 17,038 2,994,461 — 3,254,724 
Loans charged off, year-to-date— — — — — — 226 — 226 
General business
Pass740,440 571,897 267,528 176,468 117,755 319,986 1,862,643 1,938 4,058,655 
Special Mention4,399 5,749 4,285 7,002 224 1,736 3,037 — 26,432 
Accruing Substandard3,980 15,872 43,300 4,764 992 4,708 5,859 — 79,475 
Nonaccrual— 32 — — — 23 — 59 114 
Total general business748,819 593,550 315,113 188,234 118,971 326,453 1,871,539 1,997 4,164,676 
Loans charged off, year-to-date— 27 1,465 — — 166 2,425 103 4,186 
Total commercial2,067,074 1,866,895 1,751,617 1,095,279 709,743 1,653,117 5,883,625 2,786 15,030,136 
Commercial real estate:
Pass436,206 512,614 2,004,558 793,161 233,619 810,497 141,307 — 4,931,962 
Special Mention— 313 14,907 32,131 — — — — 47,351 
Accruing Substandard— — 36,981 — — 32,253 — — 69,234 
Nonaccrual— — — — — 9,905 — — 9,905 
Total commercial real estate436,206 512,927 2,056,446 825,292 233,619 852,655 141,307 — 5,058,452 
Loans charged off, year-to-date— — — — — 1,455 — — 1,455 
Origination Year
20242023202220212020PriorRevolving LoansRevolving Loans Converted to Term LoansTotal
Loans to individuals:
Residential mortgage
Pass530,186 338,187 286,865 318,935 314,814 210,251 395,943 22,929 2,418,110 
Special Mention— 167 148 219 — 113 1,767 — 2,414 
Accruing Substandard— — 163 — — 45 898 67 1,173 
Nonaccrual245 1,758 990 522 583 7,420 3,221 522 15,261 
Total residential mortgage530,431 340,112 288,166 319,676 315,397 217,829 401,829 23,518 2,436,958 
Loans charged off, year-to-date— 43 — — — 18 10 — 71 
Residential mortgage guaranteed by U.S. government agencies
Pass462 4,337 6,618 2,432 3,506 112,491 — — 129,846 
Nonaccrual— — — — 280 6,523 — — 6,803 
Total residential mortgage guaranteed by U.S. government agencies462 4,337 6,618 2,432 3,786 119,014 — — 136,649 
Personal
Pass245,737 149,572 167,272 115,710 107,291 151,030 510,147 2,619 1,449,378 
Special Mention18 17 30 825 8 — 8 — 906 
Accruing Substandard16 — — — 1 129 1,990 — 2,136 
Nonaccrual31 3 30 13 4 5 23 — 109 
Total personal245,802 149,592 167,332 116,548 107,304 151,164 512,168 2,619 1,452,529 
Loans charged off, year-to-date1
5,269 69 101 52 9 — 26 20 5,546 
Total loans to individuals776,695 494,041 462,116 438,656 426,487 488,007 913,997 26,137 4,026,136 
Total loans$3,279,975 $2,873,863 $4,270,179 $2,359,227 $1,369,849 $2,993,779 $6,938,929 $28,923 $24,114,724 
1    Includes charge-offs on deposit overdrafts, which are generally charged off at 60 days past due.
Nonaccruing Loans

A summary of nonaccruing loans at June 30, 2025, follows (in thousands): 
As of June 30, 2025
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Healthcare$28,743 $23,643 $5,100 $200 
Services11,329 1,949 9,380 3,524 
Energy40 40 — — 
General business45 45 — — 
Total commercial40,157 25,677 14,480 3,724 
Commercial real estate6,925 6,925 — — 
Loans to individuals:    
Residential mortgage20,654 20,654 — — 
Residential mortgage guaranteed by U.S. government agencies6,978 6,978 — — 
Personal4,613 4,613 — — 
Total loans to individuals32,245 32,245 — — 
Total$79,327 $64,847 $14,480 $3,724 

The majority of our nonaccruing loans are considered collateral dependent where repayment is expected to be provided through operation or sale of the collateral. Nonaccruing commercial and commercial real estate loans are primarily secured by commercial real estate and nonaccruing residential mortgage loans are secured by residential real estate.

A summary of nonaccruing loans at December 31, 2024, follows (in thousands): 
As of December 31, 2024
 TotalWith No
Allowance		With AllowanceRelated Allowance
Commercial:    
Healthcare$13,717 $13,717 $— $— 
Services767 491 276 276 
Energy49 49 — — 
General business114 114 — — 
Total commercial14,647 14,371 276 276 
Commercial real estate9,905 9,905 — — 
Loans to individuals:    
Residential mortgage15,261 15,261 — — 
Residential mortgage guaranteed by U.S. government agencies6,803 6,803 — — 
Personal109 109 — — 
Total loans to individuals22,173 22,173 — — 
Total$46,725 $46,449 $276 $276 
Loan Modifications to Borrowers Experiencing Financial Difficulty

For the six months ended June 30, 2025, the Company had $51 million of loan modifications to borrowers experiencing financial difficulty including $26 million of healthcare loans, $10 million of services loans, and $7.5 million of residential mortgage loans guaranteed by U.S government agencies. Modifications generally consist of interest rate reductions, an other than insignificant payment delay, term extension, or a combination. Approximately $39 million of the modifications were term extensions of commercial loans, and $7.5 million were combination modifications to residential mortgage loans guaranteed by U.S. government agencies. During the six months ended June 30, 2025, $18 million of loans that were modified in the previous twelve months defaulted. Approximately $11 million of these defaults were related to term extensions of healthcare loans, and $5.3 million of these defaults were related to combination modifications to residential mortgage loans guaranteed by U.S. government agencies. A payment default is defined as being 30 or more days past due after modification.

For the six months ended June 30, 2024, the Company had $114 million of loan modifications to borrowers experiencing financial difficulty, including $90 million of healthcare loans and $14 million of energy loans. Approximately $110 million of the modifications were term extensions of commercial loans, and $4.1 million were combination modifications to residential mortgage loans guaranteed by U.S. government agencies. During the six months ended June 30, 2024, $1.1 million of residential mortgage loans guaranteed by U.S. government agencies that were modified in the previous twelve months defaulted.

Past Due Loans

Past due status for all loan classes is based on the actual number of days since the last payment was due according to the contractual terms of the loans, as modified for short-term payment deferral forbearance.

A summary of loans currently performing and past due as of June 30, 2025, is as follows (in thousands):
  Past Due Past Due 90 Days or More and Accruing
 Current30 to 59
Days		60 to 89 Days90 Days
or More		Total
Commercial:    
Healthcare$3,780,284 $3,293 $16,258 $9,101 $3,808,936 $— 
Services3,653,722 4,046 1,021 18 3,658,807 18 
Energy2,734,713 — — — 2,734,713 — 
General business4,180,013 472 1,232 9 4,181,726 9 
Total commercial14,348,732 7,811 18,511 9,128 14,384,182 27 
Commercial real estate5,507,214 6,251 — 7,976 5,521,441 1,050 
Loans to individuals:    
Residential mortgage2,586,725 12,596 2,906 8,454 2,610,681 311 
Residential mortgage guaranteed by U.S. government agencies51,434 17,866 12,716 66,437 148,453 61,464 
Personal1,620,937 1,889 34 4,594 1,627,454 — 
Total loans to individuals4,259,096 32,351 15,656 79,485 4,386,588 61,775 
Total$24,115,042 $46,413 $34,167 $96,589 $24,292,211 $62,852 
A summary of loans currently performing and past due as of December 31, 2024, is as follows (in thousands):
  Past Due Past Due 90 Days or More and Accruing
 Current30 to 59
Days		60 to 89 Days90 Days
or More		Total
Commercial:    
Healthcare$3,932,142 $25,778 $— $9,613 $3,967,533 $— 
Services3,642,436 — 767 — 3,643,203 — 
Energy3,254,724 — — — 3,254,724 — 
General business4,161,510 3,067 70 29 4,164,676 — 
Total commercial14,990,812 28,845 837 9,642 15,030,136 — 
Commercial real estate5,048,667 — — 9,785 5,058,452 — 
Loans to individuals:    
Residential mortgage2,416,633 10,930 5,622 3,773 2,436,958 — 
Residential mortgage guaranteed by U.S. government agencies
45,910 18,514 15,268 56,957 136,649 52,504 
Personal1,451,397 1,061 48 23 1,452,529 — 
Total loans to individuals3,913,940 30,505 20,938 60,753 4,026,136 52,504 
Total$23,953,419 $59,350 $21,775 $80,180 $24,114,724 $52,504