LOAN SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2022		December 31, 2021
Loan Servicing Rights
Residential mortgage	$	257,112	$	206,944
SBA	4,954		5,556
Total loan servicing rights	$	262,066	$	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 June 30,				Six Months Ended June 30,
Residential mortgage servicing rights	2022		2021		2022		2021
Beginning carrying value, net	$	232,236	$	154,746	$	206,944	$	130,630
Additions	21,551		43,377		43,252		65,244
Amortization	(7,514)		(7,197)		(13,576)		(14,681)
Recoveries	10,839		749		20,492		10,482
Ending carrying value, net	$	257,112	$	191,675	$	257,112	$	191,675

(dollars in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
Residential mortgage servicing valuation allowance	2022		2021		2022		2021
Beginning balance	$	16,129	$	29,674	$	25,782	$	39,407
Recoveries	(10,839)		(749)		(20,492)		(10,482)
Ending balance	$	5,290	$	28,925	$	5,290	$	28,925

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 June 30,				Six Months Ended June 30,
SBA servicing rights	2022		2021		2022		2021
Beginning carrying value, net	$	5,384	$	6,445	$	5,556	$	5,839
Additions	236		241		774		471
Amortization	(666)		(563)		(1,376)		(1,092)
Recoveries	—		—		—		905
Ending carrying value, net	$	4,954	$	6,123	$	4,954	$	6,123

(dollars in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
SBA servicing valuation allowance	2022		2021		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 June 30,				Six Months Ended June 30,
Indirect automobile servicing rights	2022		2021		2022		2021
Beginning carrying value, net	$	—	$	29	$	—	$	73
Amortization	—		(29)		—		(73)
Ending carrying value, net	$	—	$	—	$	—	$	—

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)	June 30, 2022			December 31, 2021
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	18,304,805		$	16,786,442
Composition of residential loans serviced for others:
FHLMC	21.78		%	21.88		%
FNMA	60.49		%	60.26		%
GNMA	17.73		%	17.86		%
Total	100.00		%	100.00		%
Weighted average term (months)	342			341
Weighted average age (months)	22			20
Modeled prepayment speed	8.11		%	12.96		%
Decline in fair value due to a 10% adverse change	(9,451)			(8,368)
Decline in fair value due to a 20% adverse change	(17,679)			(16,157)
Weighted average discount rate	9.77		%	8.77		%
Decline in fair value due to a 10% adverse change	(11,577)			(6,984)
Decline in fair value due to a 20% adverse change	(21,616)			(13,504)

(dollars in thousands)	June 30, 2022			December 31, 2021
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	387,101		$	410,167
Weighted average life (in years)	3.64			3.65
Modeled prepayment speed	17.81		%	17.68		%
Decline in fair value due to a 10% adverse change	(218)			(291)
Decline in fair value due to a 20% adverse change	(419)			(557)
Weighted average discount rate	16.55		%	11.92		%
Decline in fair value due to a 100 basis point adverse change	(108)			(144)
Decline in fair value due to a 200 basis point adverse change	(212)			(282)