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LOAN SERVICING RIGHTS (Tables)
 12 Months Ended
Dec. 31, 2021
Transfers and Servicing [Abstract]  
Schedule of Servicing Assets at Fair Value
The carrying value of the loan servicing rights assets is shown in the table below:
(dollars in thousands)December 31, 2021December 31, 2020
Loan Servicing Rights
Residential mortgage$206,944 $130,630 
SBA5,556 5,839 
Indirect automobile— 73 
Total loan servicing rights$212,500 $136,542 
The table below is an analysis of the activity in the Company’s MSRs and impairment:
Years Ended December 31,
(dollars in thousands)202120202019
Residential mortgage servicing rights
Beginning carrying value, net$130,630 $94,902 $11,814 
Additions93,229 98,182 12,559 
Addition due to acquisition— — 78,855 
Amortization(30,540)(23,151)(8,222)
(Impairment)/recoveries13,625 (39,303)(104)
Ending carrying value, net$206,944 $130,630 $94,902 
Years Ended December 31,
(dollars in thousands)202120202019
Residential mortgage servicing impairment
Beginning balance$39,407 $104 $— 
Additions1,398 39,303 1,564 
Recoveries(15,023)— (1,460)
Ending balance$25,782 $39,407 $104 
The table below is an analysis of the activity in the Company’s SBA loan servicing rights and impairment:
Years Ended December 31,
(dollars in thousands)202120202019
SBA servicing rights
Beginning carrying value, net$5,839 $7,886 $3,012 
Additions954 1,571 1,004 
Addition due to acquisition— — 5,242 
Purchase accounting adjustment— (1,214)— 
Amortization(2,142)(1,640)(1,231)
(Impairment)/recovery905 (764)(141)
Ending carrying value, net$5,556 $5,839 $7,886 
Years Ended December 31,
(dollars in thousands)202120202019
SBA servicing impairment
Beginning balance$905 $141 $— 
Additions— 1,645 141 
Recoveries(905)(881)— 
Ending balance$— $905 $141 
The Company is not actively originating or selling indirect automobile loans.
Years Ended December 31,
(dollars in thousands)202120202019
Indirect automobile servicing rights
Beginning carrying value, net$73 $247 $— 
Addition due to acquisition— — 777 
Amortization(73)(174)(268)
Impairment— — (262)
Ending carrying value, net$— $73 $247 
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
The key metrics and the sensitivity of the residential mortgage servicing rights fair value to adverse changes in model inputs and/or assumptions are summarized below:
(dollars in thousands)December 31, 2021December 31, 2020
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others$16,786,442 $13,764,529 
Composition of residential loans serviced for others:
FHLMC21.88 %21.55 %
FNMA60.26 %61.75 %
GNMA17.86 %16.70 %
Total100.00 %100.00 %
Weighted average term (months)341340
Weighted average age (months)2020
Modeled prepayment speed12.96 %18.82 %
Decline in fair value due to a 10% adverse change(8,368)(7,154)
Decline in fair value due to a 20% adverse change(16,157)(13,664)
Weighted average discount rate8.77 %9.50 %
Decline in fair value due to a 10% adverse change(6,984)(4,304)
Decline in fair value due to a 20% adverse change(13,504)(8,321)
The key metrics and the sensitivity of the SBA servicing rights fair value to adverse changes in model inputs and/or assumptions are summarized below:
(dollars in thousands)December 31, 2021December 31, 2020
SBA servicing rights
Unpaid principal balance of loans serviced for others$410,167 $351,325 
Weighted average life (in years)3.653.46
Modeled prepayment speed17.68 %19.14 %
Decline in fair value due to a 10% adverse change(291)(335)
Decline in fair value due to a 20% adverse change(557)(636)
Weighted average discount rate11.92 %9.55 %
Decline in fair value due to a 100 basis point adverse change(144)(151)
Decline in fair value due to a 200 basis point adverse change(282)(295)