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Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 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:
September 30, 2020
 Fair Value Measurement Using 
 Level 1Level 2Level 3Total Fair Value
 (Dollars in thousands)
Financial assets
Investment securities available-for-sale:    
U.S. Treasury$— $32,739 $— $32,739 
Agency— 603,045 — 603,045 
Corporate— 397,536 — 397,536 
Municipal bonds— 1,313,908 — 1,313,908 
Collateralized mortgage obligations— 358,280 — 358,280 
Mortgage-backed securities— 895,223 — 895,223 
Total securities available-for-sale$— $3,600,731 $— $3,600,731 
Derivative assets:
Interest rate swaps$— $14,697 $— $14,697 
Equity warrants— — 1,920 1,920 
Total derivative assets$— $14,697 $1,920 $16,617 
Financial liabilities
Derivative liabilities$— $14,789 $— $14,789 
December 31, 2019
 Fair Value Measurement Using 
 Level 1Level 2Level 3Total
Fair Value
 (Dollars in thousands)
Financial assets
Investment securities available-for-sale:    
U.S. Treasury$— $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 reconciliation of fair value of equity warrants
The following table is a reconciliation of the fair value of the equity warrants that are classified as Level 3 and measured on a recurring basis as of :
September 30, 2020
Three Months EndedNine Months Ended
(Dollars in thousands)
Beginning Balance$1,952 $5,162 
Change in fair value (1)
(32)(35)
Sales— (3,207)
Ending balance$1,920 $1,920 
______________________________
(1) The changes in fair value are included in other income on the consolidated statement of income.
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 recurring basis at September 30, 2020.
 September 30, 2020
   Range
 Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
(Dollars in thousands)
Equity warrants$1,920 Black-Scholes
option pricing
model
Volatility
Risk free interest rate
Marketability discount
30.00% 0.13% 6.00%
35.00%
0.28%
16.00%
31.20%
0.17%
13.48%
The following table presents quantitative information about level 3 of fair value measurements for assets measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019.
 September 30, 2020
   Range
 Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$591 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
SBA secured by real estate (1)
202 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
Business loans secured by real estate
SBA secured by real estate (2)
230 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
Commercial loans
Commercial and industrial22 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
Franchise non-real estate secured2,844 Fair value of collateralCollateral discount and cost to sell7.00%10.00%9.11%
SBA non-real estate secured860 Fair value of collateralCollateral discount and cost to sell7.00%10.00%8.19%
Total individually evaluated loans4,749 
Total assets$4,749 
 December 31, 2019
   Range
 Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
(Dollars in thousands)
Investor loans secured by real estate
CRE non-owner-occupied$569 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
SBA secured by real estate (1)
408 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
Business loans secured by real estate
SBA secured by real estate (2)
140 Fair value of collateralCollateral discount and cost to sell7.00%10.00%7.81%
Commercial loans
SBA non-real estate secured1,140 Fair value of collateralCollateral discount and cost to sell7.00%63.00%15.33%
Total individually evaluated loans$2,257 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) SBA loans that are collateralized by real property other than hotel/motel real property.
Schedule of Company's financial instruments measured at fair value on a nonrecuring basis
The following table presents our assets measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019.
 September 30, 2020
 Level 1Level 2Level 3Total
Fair Value
 (Dollars in thousands)
Financial assets   
Collateral dependent loans$— $— $4,749 $4,749 
 December 31, 2019
 Level 1Level 2Level 3Total
Fair Value
 (Dollars in thousands)
Financial assets    
Impaired loans$— $— $2,257 $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 September 30, 2020
 Carrying
Amount
Level 1Level 2Level 3Estimated
Fair Value
 (Dollars in thousands)
Assets     
Cash and cash equivalents$1,103,077 $1,103,077 $— $— $1,103,077 
Interest-bearing time deposits with financial institutions2,845 2,845 — — 2,845 
Investments held-to-maturity27,980 — 29,399 — 29,399 
Investment securities available-for-sale3,600,731 — 3,600,731 — 3,600,731 
Loans held for sale1,032 — 1,091 — 1,091 
Loans held for investment, net13,450,840 — — 13,578,530 13,578,530 
Derivative assets16,617 — 14,697 1,920 16,617 
Accrued interest receivable73,112 73,112 — — 73,112 
Liabilities     
Deposit accounts$16,330,807 $14,612,343 $1,724,569 $— $16,336,912 
FHLB advances41,000 — 41,652 — 41,652 
Subordinated debentures501,443 — 515,729 — 515,729 
Derivative liabilities14,789 — 14,789 — 14,789 
Accrued interest payable7,638 7,638 — — 7,638 
 At December 31, 2019
 Carrying
Amount
Level 1Level 2Level 3Estimated
Fair Value
 (Dollars in thousands)
Assets     
Cash and cash equivalents$326,850 $326,850 $— $— $326,850 
Interest-bearing time deposits with financial institutions2,708 2,708 — — 2,708 
Investments held-to-maturity37,838 — 38,760 — 38,760 
Investment securities available-for-sale1,368,384 — 1,368,384 — 1,368,384 
Loans held for sale1,672 — 1,821 — 1,821 
Loans held for investment, net8,722,311 — — 8,691,019 8,691,019 
Derivative assets2,103 — 2,103 — 2,103 
Accrued interest receivable39,442 39,442 — — 39,442 
Liabilities     
Deposit accounts$8,898,509 $7,850,667 $1,048,583 $— $8,899,250 
FHLB advances517,026 — 517,291 — 517,291 
Subordinated debentures215,145 — 237,001 — 237,001 
Derivative liabilities2,103 — 2,103 — 2,103 
Accrued interest payable2,686 2,686 — — 2,686