LOAN SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2020

Transfers and Servicing [Abstract]

Schedule of Carrying Value of Loan Servicing Rights Assets

The carrying value of the loan servicing rights assets is shown in the table below:

(dollars in thousands)	September 30, 2020		December 31, 2019
Loan Servicing Rights
Residential mortgage	$	114,396	$	94,902
SBA	6,062		7,886
Indirect automobile	117		247
Total loan servicing rights	$	120,575	$	103,035

The Company is not actively originating or selling indirect automobile loans.

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2020		2019		2020		2019
Indirect automobile servicing rights
Beginning carrying value, net	$	162	$	—	$	247	$	—
Addition due to acquisition	—		777		—		777
Amortization	(45)		(125)		(130)		(125)
Ending carrying value, net	$	117	$	652	$	117	$	652

Schedule of Sensitivity of Fair Value to Adverse Changes in Model Inputs and/or Assumptions

The fair value of MSRs, key metrics, and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below:

(dollars in thousands)	September 30, 2020			December 31, 2019
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	12,185,383		$	8,469,600
Composition of residential loans serviced for others:
FHLMC	21.97		%	25.87		%
FNMA	62.89		%	65.35		%
GNMA	15.14		%	8.78		%
Total	100.00		%	100.00		%
Weighted average term (months)	341			341
Weighted average age (months)	23			33
Modeled prepayment speed	21.03		%	14.41		%
Decline in fair value due to a 10% adverse change	(6,249)			(4,455)
Decline in fair value due to a 20% adverse change	(11,924)			(8,520)
Weighted average discount rate	9.67		%	9.49		%
Decline in fair value due to a 10% adverse change	(3,861)			(3,557)
Decline in fair value due to a 20% adverse change	(7,154)			(6,810)

(dollars in thousands)	September 30, 2020			December 31, 2019
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	347,964		$	339,247
Weighted average life (in years)	3.37			3.81
Modeled prepayment speed	19.68		%	17.86		%
Decline in fair value due to a 10% adverse change	(391)			(299)
Decline in fair value due to a 20% adverse change	(739)			(570)
Weighted average discount rate	6.61		%	11.47		%
Decline in fair value due to a 100 basis point adverse change	(169)			(144)
Decline in fair value due to a 200 basis point adverse change	(329)			(280)