Servicing rights (Tables)

3 Months Ended

Mar. 31, 2024

Servicing Rights

Schedule of information regarding portfolio of servicing rights

	Three Months Ended March 31,
(in thousands)	2024		2023
SBA servicing rights, at amortized cost
Beginning net carrying amount	$	29,536	$	19,756
Additions due to loans sold, servicing retained		2,677		1,512
Amortization		(855)		(835)
Recovery (impairment)		(15)		1,607
Ending net carrying amount	$	31,343	$	22,040
Multi-family servicing rights, at amortized cost
Beginning net carrying amount		73,301		67,361
Additions due to loans sold, servicing retained		1,738		3,081
Amortization		(2,827)		(2,531)
Ending net carrying amount	$	72,212	$	67,911
Total servicing rights, at amortized cost	$	103,555	$	89,951

Schedule of servicing rights

	As of March 31, 2024				As of December 31, 2023
(in thousands)	UPB		Carrying Value		UPB		Carrying Value
SBA	$	1,289,023	$	31,343	$	1,208,201	$	29,536
Multi-family		5,763,756		72,212		5,689,872		73,301
Total	$	7,052,779	$	103,555	$	6,898,073	$	102,837

Schedule of assumptions used in the estimated valuation of servicing rights carried at amortized cost

		March 31, 2024						December 31, 2023
		Range of input values				Weighted Average		Range of input values				Weighted Average
SBA servicing rights
	Forward prepayment rate	0.0	-	5.2	%	5.0	%	0.0	-	4.5	%	4.4	%
	Forward default rate	0.0	-	7.2	%	6.9	%	0.0	-	7.3	%	7.0	%
	Discount rate	12.5	-	22.5	%	12.8	%	14.4	-	22.9	%	14.6	%
	Servicing expense	0.4	-	0.4	%	0.4	%	0.4	-	0.4	%	0.4	%
Multi-family servicing rights
	Forward prepayment rate	0.0	-	6.5	%	5.5	%	0.0	-	6.5	%	5.4	%
	Forward default rate	0.0	-	0.9	%	0.6	%	0.0	-	0.9	%	0.6	%
	Discount rate	6.0	-	6.0	%	6.0	%	6.0	-	6.0	%	6.0	%
	Servicing expense	0.0	-	0.8	%	0.1	%	0.0	-	0.8	%	0.1	%

Schedule of adverse changes to key assumptions on the carrying amount of the servicing rights

(in thousands)	March 31, 2024		December 31, 2023
SBA servicing rights
Forward prepayment rate
Impact of 10% adverse change	$	(690)	$	(543)
Impact of 20% adverse change	$	(1,355)	$	(1,069)
Default rate
Impact of 10% adverse change	$	(184)	$	(165)
Impact of 20% adverse change	$	(366)	$	(328)
Discount rate
Impact of 10% adverse change	$	(1,514)	$	(1,530)
Impact of 20% adverse change	$	(2,905)	$	(2,922)
Servicing expense
Impact of 10% adverse change	$	(2,260)	$	(2,047)
Impact of 20% adverse change	$	(4,520)	$	(4,095)
Multi-family servicing rights
Forward prepayment rate
Impact of 10% adverse change	$	(481)	$	(491)
Impact of 20% adverse change	$	(947)	$	(965)
Default rate
Impact of 10% adverse change	$	(14)	$	(14)
Impact of 20% adverse change	$	(28)	$	(29)
Discount rate
Impact of 10% adverse change	$	(2,305)	$	(2,320)
Impact of 20% adverse change	$	(4,496)	$	(4,524)
Servicing expense
Impact of 10% adverse change	$	(2,590)	$	(2,587)
Impact of 20% adverse change	$	(5,180)	$	(5,173)

Schedule of future amortization expense for the servicing rights

(in thousands)	March 31, 2024
2024	$	11,877
2025		14,078
2026		12,693
2027		11,347
2028		10,140
Thereafter		43,420
Total	$	103,555