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Servicing Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Transfers and Servicing [Abstract]  
Schedule of changes in the balances of servicing assets and servicing liabilities The following table summarizes the changes in SBA/USDA servicing rights for the years indicated (in thousands)
 
2019
 
2018
 
2017
Servicing rights for SBA/USDA loans, beginning of period
$
7,510

 
$
7,740

 
$
5,752

Additions:
 
 
 
 
 
Acquired servicing rights(1)
—

 
(354
)
 
419

Originated servicing rights capitalized upon sale of loans
1,835

 
2,573

 
2,737

Subtractions:
 
 
 
 
 
Disposals
(1,258
)
 
(810
)
 
(621
)
Changes in fair value:
 
 
 
 
 
Due to change in inputs or assumptions used in the valuation model
(1,293
)
 
(1,639
)
 
(547
)
Servicing rights for SBA/USDA loans, end of period
$
6,794

 
$
7,510

 
$
7,740

 (1) Includes measurement period adjustments further discussed in Note 3.
Schedule of key characteristics, inputs, and economic assumptions used to estimate the fair value of SBA Servicing Asset
A summary of the key characteristics, inputs, and economic assumptions used in the discounted cash flow method utilized to estimate the fair value of the servicing asset for SBA/USDA loans and the sensitivity of the fair values to immediate adverse changes in those assumptions are shown in the table below as of the dates indicated (dollars in thousands):
 
 
December 31,
 
 
 
2019
 
2018
 
 
Fair value of retained servicing assets
$
6,794

 
$
7,510

 
 
Prepayment rate assumption
16.5
%
 
12.1
%
 
 
10% adverse change
$
(352
)
 
$
(267
)
 
 
20% adverse change
$
(671
)
 
$
(515
)
 
 
Discount rate
12.3
%
 
14.5
%
 
 
100 bps adverse change
$
(184
)
 
$
(196
)
 
 
200 bps adverse change
$
(358
)
 
$
(381
)
 
 
Weighted-average life (years)
3.9

 
5.0

 
 
Weighted-average gross margin
1.9
%
 
1.9
%
 
Schedule of changes in residential mortgage servicing rights The following table summarizes the changes in residential mortgage servicing rights for the years indicated (in thousands).
 
2019
 
2018
 
2017
Residential mortgage servicing rights, beginning of period
$
11,877

 
$
8,262

 
$
4,372

Additions:
 
 
 
 
 
Originated servicing rights capitalized upon sale of loans
5,783

 
4,587

 
3,602

Subtractions:
 
 
 
 
 
Disposals
(1,098
)
 
(537
)
 
(328
)
Changes in fair value:
 
 
 
 
 
Initial election to carry at fair value on January 1, 2017
—

 
—

 
698

Due to change in inputs or assumptions used in the valuation
(2,997
)
 
(435
)
 
(82
)
Residential mortgage servicing rights, end of period
$
13,565

 
$
11,877

 
$
8,262
Schedule of characteristics, inputs, and economic assumptions used to estimatefair value of servicing asset for residential mortgage loans sensitivity of adverse changes
A summary of the key characteristics, inputs, and economic assumptions used to estimate the fair value of the servicing asset for residential mortgage loans and the sensitivity of the fair values to immediate adverse changes in those assumptions are shown in the table below as of the dates indicated (in thousands):
 
 
December 31,
 
 
 
2019
 
2018
 
 
Fair value of retained servicing assets
$
13,565

 
$
11,877

 
 
Prepayment rate assumption
14.1
%
 
10.6
%
 
 
10% adverse change
$
(662
)
 
$
(466
)
 
 
20% adverse change
$
(1,270
)
 
$
(898
)
 
 
Discount rate
10.0
%
 
10.0
%
 
 
100 bps adverse change
$
(467
)
 
$
(448
)
 
 
200 bps adverse change
$
(900
)
 
$
(863
)