LOAN SERVICING RIGHTS (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024		December 31, 2023
Loan Servicing Rights
Residential mortgage	$	101,855	$	171,915
SBA	1,927		2,737
Total loan servicing rights	$	103,782	$	174,652

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	2024		2023		2024		2023
Beginning carrying value, net	$	145,306	$	160,021	$	171,915	$	147,014
Additions	8,748		13,265		21,625		35,726
Amortization	(3,926)		(4,907)		(14,593)		(14,361)
Disposals	(48,273)		—		(77,092)		—
Ending carrying value, net	$	101,855	$	168,379	$	101,855	$	168,379

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	2024		2023		2024		2023
Beginning carrying value, net	$	2,156	$	3,097	$	2,737	$	3,443
Additions	16		33		92		348
Amortization	(245)		(308)		(902)		(969)
Ending carrying value, net	$	1,927	$	2,822	$	1,927	$	2,822

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, 2024			December 31, 2023
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	8,173,212		$	12,454,454
Composition of residential loans serviced for others:
FHLMC	24.01		%	17.54		%
FNMA	70.27		%	50.51		%
GNMA	5.72		%	31.95		%
Total	100.00		%	100.00		%
Weighted average term (months)	353			355
Weighted average age (months)	34			27
Modeled prepayment speed	8.59		%	8.56		%
Decline in fair value due to a 10% adverse change	$	(3,220)		$	(4,492)
Decline in fair value due to a 20% adverse change	$	(6,509)		$	(9,444)
Weighted average discount rate	10.26		%	10.98		%
Decline in fair value due to a 10% adverse change	$	(3,662)		$	(5,110)
Decline in fair value due to a 20% adverse change	$	(7,646)		$	(11,181)

(dollars in thousands)	September 30, 2024			December 31, 2023
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	226,762		$	271,164
Weighted average life (in years)	3.05			3.31
Modeled prepayment speed	22.61		%	20.83		%
Decline in fair value due to a 10% adverse change	(161)			(171)
Decline in fair value due to a 20% adverse change	(307)			(327)
Weighted average discount rate	11.13		%	14.70		%
Decline in fair value due to a 100 basis point adverse change	(58)			(69)
Decline in fair value due to a 200 basis point adverse change	(113)			(135)