Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

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:



	June 30, 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	$	—	$	63,552	$	—	$	63,552
Agency	—		199,233		—		199,233
Corporate	—		124,119		—		124,119
Municipal bonds	—		288,406		—		288,406
Collateralized mortgage obligation	—		19,236		—		19,236
Mortgage-backed securities	—		563,833		—		563,833
Total securities available-for-sale	$	—	$	1,258,379	$	—	$	1,258,379

Derivative assets	$	—	$	153	$	—	$	153

Financial liabilities
Derivative liabilities	$	—	$	153	$	—	$	153



	December 31, 2018
	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	$	—	$	60,912	$	—	$	60,912
Agency	—		130,070		—		130,070
Corporate	—		103,543		—		103,543
Municipal bonds	—		238,630		—		238,630
Collateralized mortgage obligation	—		24,338		—		24,338
Mortgage-backed securities	—		545,729		—		545,729
Total securities available-for-sale	$	—	$	1,103,222	$	—	$	1,103,222

Derivative assets	$	—	$	1,681	$	—	$	1,681

Financial liabilities
Derivative liabilities	$	—	$	1,681	$	—	$	1,681

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 June 30, 2019 and December 31, 2018.



	June 30, 2019
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands)
Financial assets
Impaired loans	$	—	$	—	$	1,569	$	1,569



	December 31, 2018
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands)
Financial assets
Impaired loans	$	—	$	—	$	1,445	$	1,445

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 June 30, 2019
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	375,384	$	375,384	$	—	$	—	$	375,384
Interest-bearing time deposits with financial institutions	2,956		2,956		—		—		2,956
Investments held-to-maturity	42,997		—		43,659		—		43,659
Investment securities available-for-sale	1,258,379		—		1,258,379		—		1,258,379
Loans held for sale	8,529		—		9,312		—		9,312
Loans held for investment, net	8,771,938		—		—		8,767,364		8,767,364
Derivative asset	153		—		153		—		153
Accrued interest receivable	40,420		40,420		—		—		40,420

Liabilities:
Deposit accounts	8,861,922		7,301,138		1,561,149		—		8,862,287
FHLB advances	571,575		—		572,968		—		572,968
Subordinated debentures	232,944		—		249,242		—		249,242
Derivative liability	153		—		153		—		153
Accrued interest payable	5,671		5,671		—		—		5,671



	At December 31, 2018
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	203,406	$	203,406	$	—	$	—	$	203,406
Interest-bearing time deposits with financial institutions	6,143		6,143		—		—		6,143
Investments held-to-maturity	45,210		—		44,672		—		44,672
Investment securities available-for-sale	1,103,222		—		1,103,222		—		1,103,222
Loans held for sale	5,719		—		6,072		—		6,072
Loans held for investment, net	8,836,818		—		—		8,697,594		8,697,594
Derivative asset	1,929		—		1,681		—		1,681
Accrued interest receivable	37,837		37,837		—		—		37,837

Liabilities:
Deposit accounts	8,658,351		7,247,673		1,403,524		—		8,651,197
FHLB advances	667,606		—		666,864		—		666,864
Other borrowings	75		—		75		—		75
Subordinated debentures	110,313		—		115,613		—		115,613
Derivative liability	1,929		—		1,681		—		1,681
Accrued interest payable	3,255		3,255		—		—		3,255