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LOAN SERVICING RIGHTS (Tables)
 9 Months Ended
Sep. 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)September 30, 2022December 31, 2021
Loan Servicing Rights
Residential mortgage$144,764 $206,944 
SBA4,318 5,556 
Total loan servicing rights$149,082 $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 September 30,Nine Months Ended September 30,
Residential mortgage servicing rights2022202120222021
Beginning carrying value, net$257,112 $191,675 $206,944 $130,630 
Additions14,893 6,195 58,145 71,439 
Amortization(6,939)(7,967)(20,515)(22,648)
Recoveries1,332 (1,397)21,824 9,085 
Disposals(121,634)— (121,634)— 
Ending carrying value, net$144,764 $188,506 $144,764 $188,506 

(dollars in thousands)Three Months Ended September 30,Nine Months Ended September 30,
Residential mortgage servicing valuation allowance2022202120222021
Beginning balance$5,290 $28,925 $25,782 $39,407 
Additions— 1,397 — 1,397 
Recoveries(1,332)— (21,824)(10,482)
Reduction due to disposal(3,958)— (3,958)— 
Ending balance$— $30,322 $— $30,322 
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 September 30,Nine Months Ended September 30,
SBA servicing rights2022202120222021
Beginning carrying value, net$4,954 $6,123 $5,556 $5,839 
Additions99 265 873 736 
Amortization(735)(555)(2,111)(1,647)
Recoveries— — — 905 
Ending carrying value, net$4,318 $5,833 $4,318 $5,833 

(dollars in thousands)Three Months Ended September 30,Nine Months Ended September 30,
SBA servicing valuation allowance2022202120222021
Beginning balance$— $— $— $905 
Recoveries— — — (905)
Ending balance$— $— $— $— 
The Company is not actively originating or selling indirect automobile loans.
(dollars in thousands)Three Months Ended September 30,Nine Months Ended September 30,
Indirect automobile servicing rights2022202120222021
Beginning carrying value, net$— $— $— $73 
Amortization— — — (73)
Ending carrying value, net$— $— $— $— 
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)September 30, 2022December 31, 2021
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others$9,708,757 $16,786,442 
Composition of residential loans serviced for others:
FHLMC16.55 %21.88 %
FNMA48.85 %60.26 %
GNMA34.60 %17.86 %
Total100.00 %100.00 %
Weighted average term (months)353341
Weighted average age (months)2120
Modeled prepayment speed7.20 %12.96 %
Decline in fair value due to a 10% adverse change(5,103)(8,368)
Decline in fair value due to a 20% adverse change(10,248)(16,157)
Weighted average discount rate10.02 %8.77 %
Decline in fair value due to a 10% adverse change(6,316)(6,984)
Decline in fair value due to a 20% adverse change(12,501)(13,504)
(dollars in thousands)September 30, 2022December 31, 2021
SBA servicing rights
Unpaid principal balance of loans serviced for others$364,548 $410,167 
Weighted average life (in years)3.663.65
Modeled prepayment speed18.12 %17.68 %
Decline in fair value due to a 10% adverse change(233)(291)
Decline in fair value due to a 20% adverse change(446)(557)
Weighted average discount rate14.62 %11.92 %
Decline in fair value due to a 100 basis point adverse change(112)(144)
Decline in fair value due to a 200 basis point adverse change(220)(282)