Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 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:



	September 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	$	—	$	64,190	$	—	$	64,190
Agency	—		261,558		—		261,558
Corporate	—		127,802		—		127,802
Municipal bonds	—		294,099		—		294,099
Collateralized mortgage obligation	—		10,642		—		10,642
Mortgage-backed securities	—		498,364		—		498,364
Total securities available-for-sale	$	—	$	1,256,655	$	—	$	1,256,655

Derivative assets	$	—	$	2,853	$	—	$	2,853

Financial liabilities
Derivative liabilities	$	—	$	2,853	$	—	$	2,853



	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 September 30, 2019 and December 31, 2018.



	September 30, 2019
	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands)
Financial assets
Impaired loans	$	—	$	—	$	16	$	16



	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 September 30, 2019
	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	427,715	$	427,715	$	—	$	—	$	427,715
Interest-bearing time deposits with financial institutions	2,711		2,711		—		—		2,711
Investments held-to-maturity	40,433		—		41,302		—		41,302
Investment securities available-for-sale	1,256,655		—		1,256,655		—		1,256,655
Loans held for sale	7,092		—		7,637		—		7,637
Loans held for investment, net	8,757,476		—		—		8,758,265		8,758,265
Derivative asset	2,853		—		2,853		—		2,853
Accrued interest receivable	38,603		38,603		—		—		38,603

Liabilities:
Deposit accounts	8,859,288		7,515,400		1,345,436		—		8,860,836
FHLB advances	604,558		—		604,980		—		604,980
Subordinated debentures	217,825		—		237,624		—		237,624
Derivative liability	2,853		—		2,853		—		2,853
Accrued interest payable	6,537		6,537		—		—		6,537



	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