Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value

Schedule of financial assets and liabilities measured on a recurring basis

			Fair Value Measurements Using
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Balance		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
Assets at June 30, 2018
Available-for-sale securities:
Agency mortgage-backed securities	$	328,505		—	$	328,505		—
U.S. Government sponsored entities		7,418		—		7,418		—
I/O strip receivables		919		—		919		—
Assets at December 31, 2017
Available-for-sale securities:
Agency mortgage-backed securities	$	374,733		—	$	374,733		—
Trust preferred securities		17,119		—		17,119		—
I/O strip receivables		968		—		968		—

Schedule of assets and liabilities measured on a non-recurring basis

			Fair Value Measurements Using
				Significant
			Quoted Prices in	Other	Significant
			Active Markets for	Observable	Unobservable
			Identical Assets	Inputs	Inputs
	Balance		(Level 1)	(Level 2)	(Level 3)
	(Dollars in thousands)
Assets at June 30, 2018
Impaired loans - held-for-investment:
Commercial	$	7,152	—	—	$	7,152
	$	7,152	—	—	$	7,152
Assets at December 31, 2017
Impaired loans - held-for-investment:
Commercial	$	242	—	—	$	242
Real estate:
Land and construction		119	—	—		119
	$	361	—	—	$	361

Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value

	June 30, 2018		December 31, 2017
	(Dollars in thousands)
Impaired loans held-for-investment:
Book value of impaired loans held-for-investment carried at fair value	$	14,616	$	651
Book value of impaired loans held-for-investment carried at cost		12,194		2,123
Total impaired loans held-for-investment	$	26,810	$	2,774
Impaired loans held-for-investment carried at fair value:
Book value of impaired loans held-for-investment carried at fair value	$	14,616	$	651
Specific valuation allowance		(7,464)		(290)
Impaired loans held-for-investment carried at fair value, net	$	7,152	$	361

Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis

	June 30, 2018
			Valuation	Unobservable	Range
	Fair Value		Techniques	Inputs	(Weighted Average)
	(Dollars in thousands)
Impaired loans - held-for-investment:
Commercial	$	7,152	Market Approach	Discount adjustment for differences between comparable sales	Less than 1  %

	December 31, 2017
			Valuation	Unobservable	Range
	Fair Value		Techniques	Inputs	(Weighted Average)
	(Dollars in thousands)
Impaired loans - held-for-investment:
Commercial	$	242	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%
Real estate:
Land and construction		119	Market Approach	Discount adjustment for differences between comparable sales	Less than 1%

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2018 are as follows:

			Estimated Fair Value
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Amounts		(Level 1)		(Level 2)		(Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	223,788	$	223,788	$	—	$	—	$	223,788
Securities available-for-sale		335,923		—		335,923		—		335,923
Securities held-to-maturity		388,603		—		375,320		—		375,320
Loans (including loans held-for-sale), net		1,935,714		—		5,745		1,894,251		1,899,996
FHLB stock, FRB stock, and other investments		22,865		—		—		—		N/A
Accrued interest receivable		8,951		—		2,321		6,630		8,951
I/O strips receivables		919		—		919		—		919
Liabilities:
Time deposits	$	157,025	$	—	$	157,352	$	—	$	157,352
Other deposits		2,526,594		—		2,526,594		—		2,526,594
Subordinated debt		39,275		—		39,875		—		39,875
Accrued interest payable		428		—		428		—		428

The carrying amounts and estimated fair values of the Company’s financial instruments at December 31, 2017:

			Estimated Fair Value
					Significant
			Quoted Prices in		Other		Significant
			Active Markets for		Observable		Unobservable
	Carrying		Identical Assets		Inputs		Inputs
	Amounts		(Level 1)		(Level 2)		(Level 3)		Total
	(Dollars in thousands)
Assets:
Cash and cash equivalents	$	316,222	$	316,222	$	—	$	—	$	316,222
Securities available-for-sale		391,852		—		391,852		—		391,852
Securities held-to-maturity		398,341		—		394,292		—		394,292
Loans (including loans held-for-sale), net		1,566,428		—		3,419		1,507,967		1,511,386
FHLB stock, FRB stock, and other investments		17,911		—		—		—		N/A
Accrued interest receivable		7,985		—		2,423		5,562		7,985
I/O strips receivables		968		—		968		—		968
Liabilities:
Time deposits	$	194,561	$	—	$	194,844	$	—	$	194,844
Other deposits		2,288,428		—		2,288,428		—		2,288,428
Subordinated debt		39,183		—		40,384		—		40,384
Accrued interest payable		389		—		389		—		389