Servicing Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Transfers and Servicing [Abstract]

Schedule of changes in SBA/USDA servicing rights

The following table summarizes the changes in SBA/USDA servicing rights for the years indicated (in thousands).

	2021		2020		2019
Beginning of period	$	6,462	$	6,794	$	7,510
Acquired servicing rights	581		—		—
Originated servicing rights capitalized upon sale of loans	2,005		1,114		1,835
Disposals	(1,430)		(624)		(1,258)
Changes in fair value due to change in inputs or assumptions used in the valuation	(1,105)		(822)		(1,293)
End of period	$	6,513	$	6,462	$	6,794

Schedule of key characteristics, inputs, and economic assumptions used to estimate the fair value of SBA/USDA loans servicing asset and sensitivity

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,
	2021			2020
Fair value of retained servicing assets	$	6,513		$	6,462
Prepayment rate assumption:
Weighted average	16.3		%	17.8		%
Range	3.2% - 31.3%			2.7% - 33.6%
10% adverse change	$	(309)		$	(358)
20% adverse change	(591)			(680)
Discount rate:
Weighted average	10.3		%	8.9		%
Range	0.0% - 45.4%			1.6% - 44.1%
100 bps adverse change	$	(166)		$	(171)
200 bps adverse change	(323)			(333)

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).

	2021		2020		2019
Beginning of period	$	16,216	$	13,565	$	11,877
Originated servicing rights capitalized upon sale of loans	12,510		11,911		5,783
Disposals	(4,275)		(2,868)		(1,098)
Changes in fair value due to change in inputs or assumptions used in the valuation	710		(6,392)		(2,997)
End of period	$	25,161	$	16,216	$	13,565

Schedule of key characteristics, inputs, and economic assumptions used to estimate the fair value of residential mortgage loans servicing asset and sensitivity

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,
	2021			2020
Fair value of retained servicing assets	$	25,161		$	16,216
Prepayment rate assumption:
Weighted average	12.6		%	17.7		%
Range	7.0% - 77.6%			8.7% - 19.5%
10% adverse change	$	(1,229)		$	(999)
20% adverse change	(2,367)			(1,912)
Discount rate:
Weighted average	9.5		%	10.0		%
Range	9.5% - 10.5%			10.0% - 11.0%
100 bps adverse change	$	(877)		$	(518)
200 bps adverse change	(1,693)			(1,001)