Servicing Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

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).

	2022		2021		2020
Beginning of period	$	6,513	$	6,462	$	6,794
Acquired servicing rights	—		581		—
Originated servicing rights capitalized upon sale of loans	2,114		2,005		1,114
Disposals	(2,062)		(1,430)		(624)
Changes in fair value due to change in inputs or assumptions used in the valuation	(1,377)		(1,105)		(822)
End of period	$	5,188	$	6,513	$	6,462

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,
	2022			2021
Fair value of retained servicing assets	$	5,188		$	6,513
Prepayment rate assumption:
Weighted average	16.4		%	16.3		%
Range	0.0% - 35.4%			3.2% - 31.3%
10% adverse change	$	(201)		$	(309)
20% adverse change	(387)			(591)
Discount rate:
Weighted average	17.5		%	10.3		%
Range	11.9% - 25.0%			0.0% - 45.4%
100 bps adverse change	$	(107)		$	(166)
200 bps adverse change	(210)			(323)

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).

	2022		2021		2020
Beginning of period	$	25,161	$	16,216	$	13,565
Originated servicing rights capitalized upon sale of loans	5,051		12,510		11,911
Disposals	(2,360)		(4,275)		(2,868)
Changes in fair value due to change in inputs or assumptions used in the valuation	8,707		710		(6,392)
End of period	$	36,559	$	25,161	$	16,216

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,
	2022			2021
Fair value of retained servicing assets	$	36,559		$	25,161
Prepayment rate assumption:
Weighted average	7.5		%	12.6		%
Range	7.0% - 31.2%			7.0% - 77.6%
10% adverse change	$	(1,236)		$	(1,229)
20% adverse change	(2,404)			(2,367)
Discount rate:
Weighted average	9.5		%	9.5		%
Range	9.5% - 11.5%			9.5% - 10.5%
100 bps adverse change	$	(1,488)		$	(877)
200 bps adverse change	(2,865)			(1,693)