Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of carrying amount and estimated fair value of financial instruments

The fair value estimates presented herein are based on pertinent information available to management as of the periods indicated, representing an exit price.



	At June 30, 2018
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	131,468	$	131,468	$	—	$	—	$	131,468
Interest-bearing time deposits with financial institutions	6,633		6,633		—		—		6,633
Investments held-to-maturity	31,965		—		31,126		—		31,126
Investment securities available-for-sale	874,700		—		874,700		—		874,700
FHLB, FRB and other stock	82,666		N/A		N/A		N/A		N/A
Loans held for sale	13,879		—		14,940		—		14,940
Loans held for investment, net	6,277,586		—		—		6,279,915		6,279,915
Derivative asset	3,272		—		3,272		—		3,272
Accrued interest receivable	27,420		27,420		—		—		27,420

Liabilities:
Deposit accounts	6,308,350		5,139,299		1,160,215		—		6,299,514
FHLB advances	337,638		—		336,504		—		336,504
Other borrowings	41,462		—		41,514		—		41,514
Subordinated debentures	105,253		—		116,004		—		116,004
Derivative liability	3,272		—		3,272		—		3,272
Accrued interest payable	1,151		1,151		—		—		1,151



	At December 31, 2017
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	197,164	$	197,164	$	—	$	—	$	197,164
Interest-bearing time deposits with financial institutions	6,633		6,633		—		—		6,633
Investments held-to-maturity	18,291		—		18,082		—		18,082
Investment securities available-for-sale	787,429		—		787,429		—		787,429
FHLB, FRB and other stock	65,881		N/A		N/A		N/A		N/A
Loans held for sale	23,426		—		23,524		—		23,524
Loans held for investment, net (1)	6,167,288		—		—		6,269,366		6,269,366
Derivative asset	1,135		—		1,135		—		$	1,135
Accrued interest receivable	27,060		27,060		—		—		27,060

Liabilities:
Deposit accounts	6,085,886		5,001,053		1,074,564		—		6,075,617
FHLB advances	490,148		—		489,823		—		489,823
Other borrowings	46,139		—		46,373		—		46,373
Subordinated debentures	105,123		—		115,159		—		115,159
Derivative liability	1,135		—		1,135		—		1,135
Accrued interest payable	2,131		2,131		—		—		2,131

(1) The estimated fair value of loans held for investment, net for December 31, 2017 is not based on an exit price assumption.

Schedule of Company's financial instruments measured at fair value on a recurring basis

The following fair value hierarchy table presents information about the Company’s financial instruments measured at fair value on a recurring basis at the dates indicated:



	June 30, 2018
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands)
Financial assets
Investment securities available-for-sale:
Agency	$	—	$	41,077	$	—	$	41,077
Corporate	—		92,502		—		92,502
Municipal bonds	—		219,901		—		219,901
Collateralized mortgage obligation	—		29,158		—		29,158
Mortgage-backed securities	—		492,062		—		492,062
Total securities available-for-sale	$	—	$	874,700	$	—	$	874,700

Derivative assets	$	—	$	3,272	$	—	$	3,272

Financial liabilities
Derivative liabilities	$	—	$	3,272	$	—	$	3,272



	December 31, 2017
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands)
Financial assets
Investment securities available-for-sale:
Agency	$	—	$	47,209	$	—	$	47,209
Corporate	—		79,546		—		79,546
Municipal bonds	—		232,128		—		232,128
Collateralized mortgage obligation	—		33,781		—		33,781
Mortgage-backed securities	—		394,765		—		394,765
Total securities available-for-sale	$	—	$	787,429	$	—	$	787,429

Derivative assets	$	—	$	1,135	$	—	$	1,135

Financial liabilities
Derivative liabilities	$	—	$	1,135	$	—	$	1,135