Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

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 assets and liabilities measured at fair value on a recurring basis at the dates indicated:

	March 31, 2020
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total Fair Value
	(Dollars in thousands)
Financial assets
Investment securities available-for-sale:
U.S. Treasury	$	—	$	32,833	$	—	$	32,833
Agency	—		247,766		—		247,766
Corporate	—		176,033		—		176,033
Municipal bonds	—		407,097		—		407,097
Collateralized mortgage obligations	—		9,656		—		9,656
Mortgage-backed securities	—		464,376		—		464,376
Total securities available-for-sale	$	—	$	1,337,761	$	—	$	1,337,761
Derivative assets	$	—	$	10,961	$	—	$	10,961
Financial liabilities
Derivative liabilities	$	—	$	11,013	$	—	$	11,013

	December 31, 2019
	Fair Value Measurement Using
	Level 1		Level 2		Level 3		Total Fair Value
	(Dollars in thousands)
Financial assets
Investment securities available-for-sale:
U.S. Treasury	$	—	$	63,555	$	—	$	63,555
Agency	—		246,358		—		246,358
Corporate	—		151,353		—		151,353
Municipal bonds	—		397,298		—		397,298
Collateralized mortgage obligations	—		9,984		—		9,984
Mortgage-backed securities	—		499,836		—		499,836
Total securities available-for-sale	$	—	$	1,368,384	$	—	$	1,368,384
Derivative assets	$	—	$	2,103	$	—	$	2,103
Financial liabilities
Derivative liabilities	$	—	$	2,103	$	—	$	2,103

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

The following table presents our assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019.

	March 31, 2020
	Level 1		Level 2		Level 3		Total Fair Value
	(Dollars in thousands)
Financial assets
Collateral dependent loans	$	—	$	—	$	660	$	660

	December 31, 2019
	Level 1		Level 2		Level 3		Total Fair Value
	(Dollars in thousands)
Financial assets
Impaired loans	$	—	$	—	$	2,257	$	2,257

Schedule of quantitative information for level 3 fair value measurements

The following table presents quantitative information about level 3 of fair value measurements for assets measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019.

	March 31, 2020
					Range
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Min	Max	Weighted Average
	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	318	Fair value of collateral	Collateral discount and cost to sell	10.00%	10.00%	10.00%
Business loans secured by real estate
SBA secured by real estate	277		Fair value of collateral	Collateral discount and cost to sell	10.00%	10.00%	10.00%
Commercial loans
SBA non-real estate secured	65		Fair value of collateral	Collateral discount and cost to sell	7.00%	10.00%	7.32%
Total individually evaluated loans	$	660

	December 31, 2019
					Range
	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Min	Max	Weighted Average
	(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied	$	569	Fair value of collateral	Collateral discount and cost to sell	10.00%	10.00%	10.00%
SBA secured by real estate	408		Fair value of collateral	Collateral discount and cost to sell	10.00%	10.00%	10.00%
Business loans secured by real estate
SBA secured by real estate	140		Fair value of collateral	Collateral discount and cost to sell	7.00%	10.00%	7.81%
Commercial loans
SBA non-real estate secured	1,140		Fair value of collateral	Collateral discount and cost to sell	7.00%	63.00%	15.33%
Total individually evaluated loans	$	2,257

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 dates indicated, representing an exit price.

	At March 31, 2020
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	534,032	$	534,032	$	—	$	—	$	534,032
Interest-bearing time deposits with financial institutions	2,708		2,708		—		—		2,708
Investments held-to-maturity	34,553		—		36,238		—		36,238
Investment securities available-for-sale	1,337,761		—		1,337,761		—		1,337,761
Loans held for sale	111		—		119		—		119
Loans held for investment, net	8,754,869		—		—		8,919,760		8,919,760
Derivative asset	10,961		—		10,961		—		10,961
Accrued interest receivable	38,294		38,294		—		—		38,294
Liabilities
Deposit accounts	9,093,072		8,020,531		1,077,483		—		9,098,014
FHLB advances	521,017		—		521,735		—		521,735
Subordinated debentures	215,269		—		227,542		—		227,542
Derivative liability	11,013		—		11,013		—		11,013
Accrued interest payable	3,671		3,671		—		—		3,671

	At December 31, 2019
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	326,850	$	326,850	$	—	$	—	$	326,850
Interest-bearing time deposits with financial institutions	2,708		2,708		—		—		2,708
Investments held-to-maturity	37,838		—		38,760		—		38,760
Investment securities available-for-sale	1,368,384		—		1,368,384		—		1,368,384
Loans held for sale	1,672		—		1,821		—		1,821
Loans held for investment, net	8,722,311		—		—		8,691,019		8,691,019
Derivative asset	2,103		—		2,103		—		2,103
Accrued interest receivable	39,442		39,442		—		—		39,442
Liabilities
Deposit accounts	8,898,509		7,850,667		1,048,583		—		8,899,250
FHLB advances	517,026		—		517,291		—		517,291
Other borrowings	—		—		—		—		—
Subordinated debentures	215,145		—		237,001		—		237,001
Derivative liability	2,103		—		2,103		—		2,103
Accrued interest payable	2,686		2,686		—		—		2,686