LOAN SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023		December 31, 2022
Loan Servicing Rights
Residential mortgage	$	160,021	$	147,014
SBA	3,097		3,443
Total loan servicing rights	$	163,118	$	150,457

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	2023		2022		2023		2022
Beginning carrying value, net	$	149,986	$	232,236	$	147,014	$	206,944
Additions	14,731		21,551		22,461		43,252
Amortization	(4,696)		(7,514)		(9,454)		(13,576)
Recoveries	—		10,839		—		20,492
Ending carrying value, net	$	160,021	$	257,112	$	160,021	$	257,112

(dollars in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
Residential mortgage servicing valuation allowance	2023		2022		2023		2022
Beginning balance	$	—	$	16,129	$	—	$	25,782
Recoveries	—		(10,839)		—		(20,492)
Ending balance	$	—	$	5,290	$	—	$	5,290

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	2023		2022		2023		2022
Beginning carrying value, net	$	3,166	$	5,384	$	3,443	$	5,556
Additions	271		236		315		774
Amortization	(340)		(666)		(661)		(1,376)
Ending carrying value, net	$	3,097	$	4,954	$	3,097	$	4,954

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, 2023			December 31, 2022
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	11,373,015		$	10,046,052
Composition of residential loans serviced for others:
FHLMC	17.21		%	16.80		%
FNMA	50.32		%	50.09		%
GNMA	32.47		%	33.11		%
Total	100.00		%	100.00		%
Weighted average term (months)	354			353
Weighted average age (months)	25			22
Modeled prepayment speed	8.47		%	8.22		%
Decline in fair value due to a 10% adverse change	(3,682)			(5,800)
Decline in fair value due to a 20% adverse change	(7,839)			(11,184)
Weighted average discount rate	11.13		%	10.00		%
Decline in fair value due to a 10% adverse change	(4,584)			(6,413)
Decline in fair value due to a 20% adverse change	(10,070)			(12,330)

(dollars in thousands)	June 30, 2023			December 31, 2022
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	318,994		$	326,418
Weighted average life (in years)	3.64			3.69
Modeled prepayment speed	18.78		%	18.24		%
Decline in fair value due to a 10% adverse change	(201)			(177)
Decline in fair value due to a 20% adverse change	(385)			(340)
Weighted average discount rate	14.84		%	19.57		%
Decline in fair value due to a 100 basis point adverse change	(92)			(83)
Decline in fair value due to a 200 basis point adverse change	(181)			(163)