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SERVICING ASSETS (Tables)
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Schedule of servicing assets
The following table summarizes the unpaid principle balance of loans serviced at December 31, 2025 and December 31, 2024:
December 31, 2025December 31, 2024
SBA 7(a)
$1,698,866 $1,996,715 
ALP
345,856 169,842 
50448,302 12,475 
Total loans serviced
$2,093,024 $2,179,032 
The following tables show a rollforward of servicing assets, at LCM for the years ended December 31, 2025 and 2024:
Servicing Assets, at LCMDecember 31, 2025December 31, 2024
Balance at beginning of the year
$24,195 $10,389 
Amortization1
(9,989)(5,378)
Additions2
15,358 19,184 
Impairment assessment
— — 
Balance at end of the year
$29,564 $24,195 
1    Included within Net loss on loan servicing assets in the Consolidated Statements of Income
2    Included within Net gains on sales of loans in the Consolidated Statements of Income
Fair value and valuation assumption
The following table summarizes the fair value and valuation assumptions related to servicing assets at December 31, 2025 and December 31, 2024:
December 31, 2025December 31, 2024
WeightedRangeWeightedRange
Unobservable Input
Amount
AverageMinimumMaximum
Amount
AverageMinimumMaximum
Servicing assets at FV:
$15,358 $22,062 
Discount factor1
11.25 %11.25 %11.25 %12.00 %12.00 %12.00 %
Cumulative prepayment rate22.50 %22.50 %22.50 %22.50 %22.50 %22.50 %
Average cumulative default rate21.00 %21.00 %21.00 %21.00 %21.00 %21.00 %
Servicing assets at LCM:
29,564 24,195 
Discount factor1
11.27 %10.75 %12.00 %12.97 %12.00 %13.50 %
Cumulative prepayment rate33.72 %22.50 %50.00 %34.65 %22.50 %75.00 %
Average cumulative default rate16.95 %5.00 %21.00 %18.90 %5.00 %20.00 %
Total
$44,922 $46,257 
1 Determined based on risk spreads and observable secondary market transactions.
The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of December 31, 2025 and December 31, 2024. In addition to the inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at December 31, 2025 and December 31, 2024.

Fair Value as ofWeightedRange
December 31, 2025Unobservable Input
Average
MinimumMaximum
Assets:
Loans HFI, at FV - accrual
$208,655 Market yields6.55 %6.55 %6.55 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate21.00 %21.00 %21.00 %
Loans HFI, at FV - non-accrual
$72,543 Market yields7.00 %7.00 %7.00 %
Average cumulative default rate30.00 %30.00 %30.00 %
Loans HFS, at FV
$647,370 Market yields7.19 %6.43 %8.13 %
Cumulative prepayment rate56.17 %50.00 %60.00 %
Average cumulative default rate11.17 %5.00 %15.00 %
Joint ventures and other investments$38,856 Market yields7.40 %6.71 %12.49 %
Cost of equity14.00 %12.00 %16.00 %
Weighted average cost of capital9.00 %7.00 %11.00 %
Residuals in securitizations, at FV$76,701 Market yields7.58 %7.58 %7.58 %
Cost of equity14.00 %12.00 %16.00 %
Weighted average cost of capital9.00 %7.00 %11.00 %
Servicing assets, at FV1
$15,358 Market yields11.25 %11.25 %11.25 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate21.00 %21.00 %21.00 %
Other real estate owned, at FV
$7,570 Appraised valueN/AN/AN/A
Liabilities:
Equity warrants
$81 
Expected volatility
45.00 %45.00 %45.00 %
Dividend yield
6.70 %6.70 %6.70 %
Risk free rate
3.95 %3.95 %3.95 %
1    $15.4 million of servicing assets held at FV and $29.6 million of servicing assets held at LCM. Refer to NOTE 7—SERVICING ASSETS.
Fair Value as ofWeightedRange
December 31, 2024Unobservable Input
Average
MinimumMaximum
Assets:
Loans HFI, at FV - accrual
$302,442 Market yields6.55 %6.55 %6.55 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate21.00 %21.00 %21.00 %
Loans HFI, at FV - non-accrual
$67,304 Market yields7.30 %7.30 %7.30 %
Average cumulative default rate30.00 %30.00 %30.00 %
Loans HFS, at FV
$372,286 Market yields7.62 %7.08 %8.18 %
Cumulative prepayment rate59.78 %50.00 %70.00 %
Average cumulative default rate9.89 %5.00 %15.00 %
Joint ventures and other investments$57,678 Market yields8.40 %8.00 %12.00 %
Cost of equity11.00 %8.00 %14.00 %
Weighted average cost of capital7.72 %6.00 %23.98 %
Servicing assets, at FV1
$22,062 Market yields12.00 %12.00 %12.00 %
Cumulative prepayment rate22.50 %22.50 %22.50 %
Average cumulative default rate21.00 %21.00 %21.00 %
Assets held for sale$21,308 Present value factor90.70 %89.50 %93.20 %
Discount rate10.23 %7.27 %11.71 %
Other real estate owned, at FV$3,764 Appraised valueN/AN/AN/A
Liabilities:
Equity warrants$133 Expected volatility48.00 %48.00 %48.00 %
Dividend yield6.00 %6.00 %6.00 %
Risk free rate4.52 %4.52 %4.52 %
1    $22.1 million of servicing assets held at FV and $24.2 million of servicing assets held at LCM. Refer to NOTE 7—SERVICING ASSETS.
Schedule of servicing fee income
Servicing income earned for the years ended December 31, 2025, 2024 and 2023 was as follows:

Year Ended December 31,
202520242023
Servicing income
$22,850$20,087$18,289