LOAN SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2021

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)	March 31, 2021		December 31, 2020
Loan Servicing Rights
Residential mortgage	$	154,746	$	130,630
SBA	6,445		5,839
Indirect automobile	29		73
Total loan servicing rights	$	161,220	$	136,542

The table below is an analysis of the activity in the Company’s MSRs and impairment:

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing rights	2021		2020
Beginning carrying value, net	$	130,630	$	94,902
Additions	21,867		16,061
Amortization	(7,484)		(4,166)
Recoveries/(impairment)	9,733		(20,875)
Ending carrying value, net	$	154,746	$	85,922

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing valuation allowance	2021		2020
Beginning balance	$	39,407	$	104
Additions	—		20,875
Recoveries	(9,733)		—
Ending balance	$	29,674	$	20,979

The table below is an analysis of the activity in the Company’s SBA loan servicing rights and impairment:

(dollars in thousands)	Three Months Ended March 31,
SBA servicing rights	2021		2020
Beginning carrying value, net	$	5,839	$	7,886
Additions	230		375
Purchase accounting adjustment	—		(1,214)
Amortization	(529)		(363)
Recoveries/(impairment)	905		(1,290)
Ending carrying value, net	$	6,445	$	5,394

(dollars in thousands)	Three Months Ended March 31,
SBA servicing valuation allowance	2021		2020
Beginning balance	$	905	$	141
Additions	—		1,290
Recoveries	(905)		—
Ending balance	$	—	$	1,431

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

(dollars in thousands)	Three Months Ended March 31,
Indirect automobile servicing rights	2021		2020
Beginning carrying value, net	$	73	$	247
Amortization	(44)		(43)
Ending carrying value, net	$	29	$	204

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

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

(dollars in thousands)	March 31, 2021			December 31, 2020
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	14,171,621		$	13,764,529
Composition of residential loans serviced for others:
FHLMC	21.05		%	21.55		%
FNMA	61.40		%	61.75		%
GNMA	17.55		%	16.70		%
Total	100.00		%	100.00		%
Weighted average term (months)	340			340
Weighted average age (months)	20			20
Modeled prepayment speed	13.37		%	18.82		%
Decline in fair value due to a 10% adverse change	(6,886)			(7,154)
Decline in fair value due to a 20% adverse change	(13,262)			(13,664)
Weighted average discount rate	8.76		%	9.50		%
Decline in fair value due to a 10% adverse change	(5,522)			(4,304)
Decline in fair value due to a 20% adverse change	(10,671)			(8,321)

(dollars in thousands)	March 31, 2021			December 31, 2020
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	437,989		$	351,325
Weighted average life (in years)	3.49			3.46
Modeled prepayment speed	19.05		%	19.14		%
Decline in fair value due to a 10% adverse change	(412)			(335)
Decline in fair value due to a 20% adverse change	(783)			(636)
Weighted average discount rate	7.09		%	9.55		%
Decline in fair value due to a 100 basis point adverse change	(188)			(151)
Decline in fair value due to a 200 basis point adverse change	(367)			(295)