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, 2022
	Fair Value Measurement Using						Total Fair Value
(Dollars in thousands)	Level 1		Level 2		Level 3
Financial assets
AFS investment securities:
U.S. Treasury	$	—	$	46,774	$	—	$	46,774
Agency	—		430,863		—		430,863
Corporate debt	—		555,750		—		555,750

Collateralized mortgage obligations	—		791,115		—		791,115
Mortgage-backed securities	—		836,577		—		836,577
Total AFS investment securities	$	—	$	2,661,079	$	—	$	2,661,079


Equity securities with readily determinable fair values	$	1,035	$	—	$	—	$	1,035

Derivative assets:
Foreign exchange contracts	$	15	$	—	$	—	$	15
Interest rate swaps (1)	—		8,033		—		8,033
Equity warrants	—		—		1,911		1,911
Total derivative assets	$	15	$	8,033	$	1,911	$	9,959

Financial liabilities
Derivative liabilities:
Foreign exchange	$	7	$	—	$	—	$	7
Interest rate swaps	—		12,766		—		12,766
Total derivative liabilities	$	7	$	12,766	$	—	$	12,773

______________________________

(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						Total Fair Value
(Dollars in thousands)	Level 1		Level 2		Level 3
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 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.

September 30, 2022

Range

(Dollars in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Min

Max

Weighted Average

Equity warrants

$

1,911

Black-Scholes
option pricing
model

Volatility
Risk free interest rate
Marketability discount

30.00%

3.92%

5.50%

35.00%

4.25%

16.00%

31.17%

4.00%

13.55%

December 31, 2021

Range

(Dollars in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Min

Max

Weighted 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.

September 30, 2022

Range

(Dollars in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Min

Max

Weighted Average

Investor loans secured by real estate

CRE non-owner-occupied

$

13,754

Fair value of collateral

Collateral discount and cost to sell

7.00%

Commercial loans

Commercial and industrial

4,514

Fair value of collateral

Collateral discount and cost to sell

6.00%

Total individually evaluated loans

$

18,268

December 31, 2021

Range

(Dollars in thousands)

Fair Value

Valuation Technique(s)

Unobservable Input(s)

Min

Max

Weighted Average

Investor loans secured by real estate

SBA secured by real estate (1)

$

937

Fair value of collateral

Collateral discount and cost to sell

10.00%

Total individually evaluated loans

$

937

______________________________

(1) SBA loans that are collateralized by hotel/motel real property.

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, 2022
(Dollars in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Assets
Cash and cash equivalents	$	739,211	$	739,211	$	—	$	—	$	739,211
Interest-bearing time deposits with financial institutions	1,733		1,733		—		—		1,733
Investment securities held-to-maturity	1,385,502		—		1,055,187		—		1,055,187
Investment securities available-for-sale	2,661,079		—		2,661,079		—		2,661,079
Equity securities with readily determinable fair values	1,035		1,035		—		—		1,035
Loans held for sale	2,163		—		2,261		—		2,261
Loans held for investment, net	14,908,811		—		—		14,207,668		14,207,668
Derivative assets (1)	9,959		15		8,033		1,911		9,959
Accrued interest receivable	66,192		—		66,192		—		66,192

Liabilities
Deposit accounts	$	17,746,374	$	—	$	17,724,242	$	—	$	17,724,242
FHLB advances	600,000		—		582,313		—		582,313

Subordinated debentures	331,045		—		330,742		—		330,742
Derivative liabilities	12,773		7		12,766		—		12,773
Accrued interest payable	8,785		—		8,785		—		8,785

______________________________

(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 1		Level 2		Level 3		Estimated Fair Value
Assets
Cash and cash equivalents	$	304,703	$	304,703	$	—	$	—	$	304,703
Interest-bearing time deposits with financial institutions	2,216		2,216		—		—		2,216
Investment securities held-to-maturity	381,674		—		384,423		—		384,423
Investment securities available-for-sale	4,273,864		—		4,273,864		—		4,273,864
Loans held for sale	10,869		—		11,959		—		11,959
Loans held for investment, net	14,295,897		—		—		14,392,684		14,392,684
Derivative assets	11,989		—		10,100		1,889		11,989
Accrued interest receivable	65,728		65,728		—		—		65,728

Liabilities
Deposit accounts	$	17,115,589	$	16,057,316	$	1,058,822	$	—	$	17,116,138
FHLB advances	550,000		—		550,093		—		550,093
Other borrowings	8,000		—		8,000		—		8,000
Subordinated debentures	330,567		—		350,359		—		350,359
Derivative liabilities	5,263		—		5,263		—		5,263
Accrued interest payable	2,366		2,366		—		—		2,366