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Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2021
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:
June 30, 2021
 Fair Value Measurement Using 
(Dollars in thousands)Level 1Level 2Level 3Total Fair Value
Financial assets
Investment securities available-for-sale:    
U.S. Treasury$— $111,808 $— $111,808 
Agency— 555,167 — 555,167 
Corporate— 358,382 — 358,382 
Municipal bonds— 1,379,473 — 1,379,473 
Collateralized mortgage obligations— 614,738 — 614,738 
Mortgage-backed securities— 1,467,879 — 1,467,879 
Total securities available-for-sale$— $4,487,447 $— $4,487,447 
Derivative assets:
Interest rate swaps$— $6,712 $— $6,712 
Equity warrants— — 1,903 1,903 
Total derivative assets$— $6,712 $1,903 $8,615 
Financial liabilities
Derivative liabilities$— $6,716 $— $6,716 
December 31, 2020
 Fair Value Measurement Using 
(Dollars in thousands)Level 1Level 2Level 3Total
Fair Value
Financial assets
Investment securities available-for-sale:    
U.S. Treasury$— $32,533 $— $32,533 
Agency— 690,386 — 690,386 
Corporate— 415,308 — 415,308 
Municipal bonds— 1,446,019 — 1,446,019 
Collateralized mortgage obligations— 513,366 — 513,366 
Mortgage-backed securities— 833,503 — 833,503 
Total securities available-for-sale$— $3,931,115 $— $3,931,115 
Derivative assets:
Interest rate swaps$— $12,053 $— $12,053 
Equity warrants— — 1,914 1,914 
Total derivative assets$— $12,053 $1,914 $13,967 
Financial liabilities
Derivative liabilities$— $12,066 $— $12,066 
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:
Three Months EndedSix Months Ended
June 30,June 30,June 30,June 30,
(Dollars in thousands)2021202020212020
Beginning balance$1,911 $5,162 $1,914 $5,162 
Change in fair value (1)
(8)(3)(11)(3)
Sales— (3,207)— (3,207)
Ending balance$1,903 $1,952 $1,903 $1,952 
______________________________
(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 fair value measurements for assets measured at fair value on a recurring basis at the dates indicated.
 June 30, 2021
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Equity warrants$1,903 Black-Scholes
option pricing
model
Volatility
Risk free interest rate
Marketability discount
30.00%
0.25%
6.00%
35.00%
0.67%
16.00%
31.16%
0.35%
13.55%

 December 31, 2020
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Equity warrants$1,914 Black-Scholes
option pricing
model
Volatility
Risk free interest rate
Marketability discount
30.00%
0.13%
6.00%
35.00%
0.36%
16.00%
31.19%
0.18%
13.51%
The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a nonrecurring basis at the dates indicated.
 June 30, 2021
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Investor loans secured by real estate
SBA secured by real estate (1)
$439 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
Commercial loans
Commercial and industrial406 Fair value of collateralCollateral discount and cost to sell20.00%75.00%57.89%
Total individually evaluated loans$845 
 December 31, 2020
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Investor loans secured by real estate
CRE non-owner-occupied$198 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
SBA secured by real estate (1)
746 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)
386 Fair value of collateralCollateral discount and cost to sell7.00%10.00%9.09%
Commercial loans
Commercial and industrial2,040 Fair value of collateralCollateral discount and cost to sell7.00%10.00%9.06%
SBA non-real estate secured707 Fair value of collateralCollateral discount and cost to sell7.00%7.00%7.00%
Total individually evaluated loans$4,077 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
(2) SBA loans that are collateralized by real property other than hotel/motel real property.
Schedule of Company's financial instruments measured at fair value on a nonrecuring basis
The following table presents our assets measured at fair value on a nonrecurring basis at the dates indicated.
 June 30, 2021
(Dollars in thousands)Level 1Level 2Level 3Total
Fair Value
Financial assets   
Collateral dependent loans$— $— $845 $845 
 December 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Total
Fair Value
Financial assets    
Collateral dependent loans$— $— $4,077 $4,077 
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, 2021
(Dollars in thousands)Carrying
Amount
Level 1Level 2Level 3Estimated
Fair Value
Assets     
Cash and cash equivalents$631,888 $631,888 $— $— $631,888 
Interest-bearing time deposits with financial institutions2,708 2,708 — — 2,708 
Investments held-to-maturity18,933 — 19,820 — 19,820 
Investment securities available-for-sale4,487,447 — 4,487,447 — 4,487,447 
Loans held for sale4,714 — 5,208 — 5,208 
Loans held for investment, net13,594,598 — — 13,750,527 13,750,527 
Derivative assets8,615 — 6,712 1,903 8,615 
Accrued interest receivable67,529 67,529 — — 67,529 
Liabilities     
Deposit accounts$17,015,097 $15,755,399 $1,262,149 $— $17,017,548 
Subordinated debentures476,622 — 515,431 — 515,431 
Derivative liabilities6,716 — 6,716 — 6,716 
Accrued interest payable6,216 6,216 — — 6,216 

 At December 31, 2020
(Dollars in thousands)Carrying
Amount
Level 1Level 2Level 3Estimated
Fair Value
Assets     
Cash and cash equivalents$880,766 $880,766 $— $— $880,766 
Interest-bearing time deposits with financial institutions2,845 2,845 — — 2,845 
Investments held-to-maturity23,732 — 25,013 — 25,013 
Investment securities available-for-sale3,931,115 — 3,931,115 — 3,931,115 
Loans held for sale601 — 645 — 645 
Loans held for investment, net13,236,433 — — 13,351,092 13,351,092 
Derivative assets13,967 — 12,053 1,914 13,967 
Accrued interest receivable74,574 74,574 — — 74,574 
Liabilities     
Deposit accounts$16,214,177 $14,587,335 $1,631,047 $— $16,218,382 
FHLB advances31,000 — 31,564 — 31,564 
Subordinated debentures501,511 — 544,436 — 544,436 
Derivative liabilities12,066 — 12,066 — 12,066 
Accrued interest payable6,569 6,569 — — 6,569