LOAN SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022		December 31, 2021
Loan Servicing Rights
Residential mortgage	$	232,236	$	206,944
SBA	5,384		5,556
Total loan servicing rights	$	237,620	$	212,500

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

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing rights	2022		2021
Beginning carrying value, net	$	206,944	$	130,630
Additions	21,701		21,867
Amortization	(6,062)		(7,484)
Recoveries	9,653		9,733
Ending carrying value, net	$	232,236	$	154,746

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing valuation allowance	2022		2021
Beginning balance	$	25,782	$	39,407
Recoveries	(9,653)		(9,733)
Ending balance	$	16,129	$	29,674

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

(dollars in thousands)	Three Months Ended March 31,
SBA servicing rights	2022		2021
Beginning carrying value, net	$	5,556	$	5,839
Additions	538		230
Amortization	(710)		(529)
Recoveries	—		905
Ending carrying value, net	$	5,384	$	6,445

(dollars in thousands)	Three Months Ended March 31,
SBA servicing valuation allowance	2022		2021
Beginning balance	$	—	$	905
Recoveries	—		(905)
Ending balance	$	—	$	—

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

(dollars in thousands)	Three Months Ended March 31,
Indirect automobile servicing rights	2022		2021
Beginning carrying value, net	$	—	$	73
Amortization	—		(44)
Ending carrying value, net	$	—	$	29

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, 2022			December 31, 2021
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	17,534,847		$	16,786,442
Composition of residential loans serviced for others:
FHLMC	21.85		%	21.88		%
FNMA	60.44		%	60.26		%
GNMA	17.71		%	17.86		%
Total	100.00		%	100.00		%
Weighted average term (months)	342			341
Weighted average age (months)	21			20
Modeled prepayment speed	8.35		%	12.96		%
Decline in fair value due to a 10% adverse change	(8,521)			(8,368)
Decline in fair value due to a 20% adverse change	(16,149)			(16,157)
Weighted average discount rate	9.77		%	8.77		%
Decline in fair value due to a 10% adverse change	(10,222)			(6,984)
Decline in fair value due to a 20% adverse change	(19,270)			(13,504)

(dollars in thousands)	March 31, 2022			December 31, 2021
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	407,006		$	410,167
Weighted average life (in years)	3.67			3.65
Modeled prepayment speed	17.54		%	17.68		%
Decline in fair value due to a 10% adverse change	(316)			(291)
Decline in fair value due to a 20% adverse change	(602)			(557)
Weighted average discount rate	10.19		%	11.92		%
Decline in fair value due to a 100 basis point adverse change	(159)			(144)
Decline in fair value due to a 200 basis point adverse change	(310)			(282)