LOAN SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 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)	September 30, 2023		December 31, 2022
Loan Servicing Rights
Residential mortgage	$	168,379	$	147,014
SBA	2,822		3,443
Total loan servicing rights	$	171,201	$	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 September 30,				Nine Months Ended September 30,
Residential mortgage servicing rights	2023		2022		2023		2022
Beginning carrying value, net	$	160,021	$	257,112	$	147,014	$	206,944
Additions	13,265		14,893		35,726		58,145
Amortization	(4,907)		(6,939)		(14,361)		(20,515)
Recoveries	—		1,332		—		21,824
Disposals	—		(121,634)		—		(121,634)
Ending carrying value, net	$	168,379	$	144,764	$	168,379	$	144,764

(dollars in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
Residential mortgage servicing valuation allowance	2023		2022		2023		2022
Beginning balance	$	—	$	5,290	$	—	$	25,782
Recoveries	—		(1,332)		—		(21,824)
Reduction due to disposal	—		(3,958)		—		(3,958)
Ending balance	$	—	$	—	$	—	$	—

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 rights	2023		2022		2023		2022
Beginning carrying value, net	$	3,097	$	4,954	$	3,443	$	5,556
Additions	33		99		348		873
Amortization	(308)		(735)		(969)		(2,111)
Ending carrying value, net	$	2,822	$	4,318	$	2,822	$	4,318

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, 2023			December 31, 2022
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	12,013,844		$	10,046,052
Composition of residential loans serviced for others:
FHLMC	17.41		%	16.80		%
FNMA	50.44		%	50.09		%
GNMA	32.15		%	33.11		%
Total	100.00		%	100.00		%
Weighted average term (months)	354			353
Weighted average age (months)	26			22
Modeled prepayment speed	7.79		%	8.22		%
Decline in fair value due to a 10% adverse change	(2,900)			(5,800)
Decline in fair value due to a 20% adverse change	(6,483)			(11,184)
Weighted average discount rate	11.66		%	10.00		%
Decline in fair value due to a 10% adverse change	(3,843)			(6,413)
Decline in fair value due to a 20% adverse change	(8,989)			(12,330)

(dollars in thousands)	September 30, 2023			December 31, 2022
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	299,910		$	326,418
Weighted average life (in years)	3.49			3.69
Modeled prepayment speed	19.68		%	18.24		%
Decline in fair value due to a 10% adverse change	(265)			(177)
Decline in fair value due to a 20% adverse change	(415)			(340)
Weighted average discount rate	16.97		%	19.57		%
Decline in fair value due to a 100 basis point adverse change	(170)			(83)
Decline in fair value due to a 200 basis point adverse change	(236)			(163)