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Servicing Assets
 9 Months Ended
Sep. 30, 2024
Servicing Asset [Abstract]  
Servicing Assets Servicing Assets
The Company recognizes the right to service SBA loans for others as servicing assets when the servicing income the Company receives is more than adequate compensation. Servicing assets are accounted for using the amortization method. Under this method, the Company amortizes the servicing assets over the period of the economic life of the assets arising from estimated net servicing revenue.
The Company periodically stratifies its servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Based on the results of the impairment test, there was no valuation allowance for impairment as of September 30, 2024 and December 31, 2023.
The following table presents an analysis of the changes in activity for loan servicing assets during the three and nine months ended September 30, 2024 and 2023:

Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)2024202320242023
Beginning balance$11,043 $12,654 $11,741 $12,759 
Additions from loans sold with servicing retained783 505 2,081 2,474 
Amortized to expense(949)(1,228)(2,945)(3,302)
Ending balance$10,877 $11,931 $10,877 $11,931 
The fair value of the servicing assets was $16.5 million as of September 30, 2024, which was determined using discount rates ranging from 3.75% to 11.25% and prepayment speeds ranging from 12.80% to 13.20%, depending on the stratification of the specific assets.
The fair value of the servicing assets was $17.0 million as of September 30, 2023, which was determined using discount rates ranging from 4.50% to 11.22% and prepayment speeds ranging from 12.60% to 13.20% depending on the stratification of the specific assets.