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TRANSFERS AND SERVICING OF FINANCIAL ASSETS (Tables)
12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
Summary of Change in SBA Servicing Asset
A summary of change in the SBA servicing asset for the years ended December 31, 2023 and 2022 follows:
(dollars in thousands)20232022
Balance, beginning of period$514 $170 
Additions216 422 
Amortization (1)
(184)(78)
Balance, end of period$546 $514 
(1) Amortization included accelerated amortization of $92 thousand and $40 thousand for the years ended December 31, 2023 and 2022, respectively.
Significant Valuation Assumptions for the SBA Servicing Asset The significant assumptions used in the valuation of the SBA servicing asset at December 31, 2023 and 2022 included:
(dollars in thousands)December 31,
2023
December 31,
2022
Discount rate:
Range
10.5% – 26.2%
13.9% – 34.3%
Weighted average16.1%19.1%
Prepayment speed:
Range
11.2% – 48.1%
9.7% – 41.2%
Weighted average19.0%17.0%
Components of Net Servicing Fees Included in Noninterest Income
The following table presents the components of net servicing fees, included in servicing and related income on loans, net in the consolidated statements of income, for the years ended December 31, 2023 and 2022:
(dollars in thousands)20232022
Contractually specified fees$410 $203 
Amortization(184)(78)
Net servicing fees$226 $125