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Fair Value of Financial Instruments (Tables)
6 Months Ended
Jun. 30, 2022
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, 2022
 Fair Value Measurement Using 
(Dollars in thousands)Level 1Level 2Level 3Total Fair Value
Financial assets
AFS investment securities:    
U.S. Treasury$— $33,360 $— $33,360 
Agency— 412,295 — 412,295 
Corporate debt— 569,415 — 569,415 
Collateralized mortgage obligations— 789,786 — 789,786 
Mortgage-backed securities— 874,214 — 874,214 
Total AFS investment securities$— $2,679,070 $— $2,679,070 
Derivative assets:
Interest rate swaps (1)
$— $5,606 $— $5,606 
Equity warrants— — 1,906 1,906 
Total derivative assets$— $5,606 $1,906 $7,512 
Financial liabilities
Derivative liabilities:
Interest rate swaps (1)
$— $7,984 $— $7,984 
________________________________________________________________
(1) Represents amounts after the application of variation margin payments as settlements with central counterparties, where applicable. See Note 11 – Derivative Instruments for additional information.
December 31, 2021
 Fair Value Measurement Using 
(Dollars in thousands)Level 1Level 2Level 3Total
Fair Value
Financial assets
AFS investment securities:    
U.S. Treasury$— $57,866 $— $57,866 
Agency— 432,135 — 432,135 
Corporate debt— 453,861 — 453,861 
Municipal bonds— 1,089,913 — 1,089,913 
Collateralized mortgage obligations— 676,643 — 676,643 
Mortgage-backed securities— 1,563,446 — 1,563,446 
Total AFS investment securities$— $4,273,864 $— $4,273,864 
Derivative assets:
Interest rate swaps$— $10,100 $— $10,100 
Equity warrants— — 1,889 1,889 
Total derivative assets$— $10,100 $1,889 $11,989 
Financial liabilities
Derivative liabilities:
Interest rate swaps$— $5,263 $— $5,263 
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,March 31,June 30,June 30,June 30,
(Dollars in thousands)20222022202120222021
Beginning balance$1,908 $1,889 $1,911 $1,889 $1,914 
Change in fair value (1)
(2)19 (8)17 (11)
Ending balance$1,906 $1,908 $1,903 $1,906 $1,903 
______________________________
(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, 2022
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Equity warrants$1,906 Black-Scholes
option pricing
model
Volatility
Risk free interest rate
Marketability discount
30.00%
2.66%
5.50%
35.00%
2.99%
16.00%
31.16%
2.73%
13.57%

 December 31, 2021
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Equity warrants$1,889 Black-Scholes
option pricing
model
Volatility
Risk free interest rate
Marketability discount
30.00%
0.39%
6.00%
35.00%
0.97%
16.00%
31.14%
0.52%
13.61%
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, 2022
   Range
(Dollars in thousands)Fair ValueValuation Technique(s)Unobservable Input(s)MinMaxWeighted Average
Investor loans secured by real estate
CRE non-owner-occupied$7,907 Fair value of collateralCollateral discount and cost to sell7.00%7.00%7.00%
Commercial loans
Commercial and industrial4,502 Fair value of collateralCollateral discount and cost to sell6.00%6.00%6.00%
Total individually evaluated loans$12,409 
 December 31, 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)
$937 Fair value of collateralCollateral discount and cost to sell10.00%10.00%10.00%
Total individually evaluated loans$937 
______________________________
(1) SBA loans that are collateralized by hotel/motel real property.
Schedule of Company's financial instruments measured at fair value on a nonrecurring basis
The following table presents our assets measured at fair value on a nonrecurring basis at the dates indicated.
 June 30, 2022
(Dollars in thousands)Level 1Level 2Level 3Total
Fair Value
Financial assets   
Collateral dependent loans$— $— $12,409 $12,409 
 December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Total
Fair Value
Financial assets    
Collateral dependent loans$— $— $937 $937 
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, 2022
(Dollars in thousands)Carrying
Amount
Level 1Level 2Level 3Estimated
Fair Value
Assets     
Cash and cash equivalents$972,798 $972,798 $— $— $972,798 
Interest-bearing time deposits with financial institutions2,216 2,216 — — 2,216 
Investment securities held-to-maturity1,390,682 — 1,156,501 — 1,156,501 
Investment securities available-for-sale2,679,070 — 2,679,070 — 2,679,070 
Loans held for sale2,957 — 3,100 — 3,100 
Loans held for investment, net15,047,608 — — 14,578,222 14,578,222 
Derivative assets (1)
7,512 — 5,606 1,906 7,512 
Accrued interest receivable66,898 — 66,898 — 66,898 
Liabilities     
Deposit accounts$18,084,613 $— $18,103,521 $— $18,103,521 
FHLB advances600,000 — 599,403 — 599,403 
Subordinated debentures330,886 — 331,934 — 331,934 
Derivative liabilities (1)
7,984 — 7,984 — 7,984 
Accrued interest payable2,866 — 2,866 — 2,866 
________________________________________________________________
(1) Represents amounts after the application of variation margin payments as settlements with central counterparties, where applicable. See Note 11 – Derivative Instruments for additional information.
 At December 31, 2021
(Dollars in thousands)Carrying
Amount
Level 1Level 2Level 3Estimated
Fair Value
Assets     
Cash and cash equivalents$304,703 $304,703 $— $— $304,703 
Interest-bearing time deposits with financial institutions2,216 2,216 — — 2,216 
Investment securities held-to-maturity381,674 — 384,423 — 384,423 
Investment securities available-for-sale4,273,864 — 4,273,864 — 4,273,864 
Loans held for sale10,869 — 11,959 — 11,959 
Loans held for investment, net14,295,897 — — 14,392,684 14,392,684 
Derivative assets11,989 — 10,100 1,889 11,989 
Accrued interest receivable65,728 65,728 — — 65,728 
Liabilities     
Deposit accounts$17,115,589 $16,057,316 $1,058,822 $— $17,116,138 
FHLB advances550,000 — 550,093 — 550,093 
Other borrowings8,000 — 8,000 — 8,000 
Subordinated debentures330,567 — 350,359 — 350,359 
Derivative liabilities5,263 — 5,263 — 5,263 
Accrued interest payable2,366 2,366 — — 2,366