LOAN SERVICING RIGHTS (Tables)

3 Months Ended

Mar. 31, 2024

Transfers and Servicing [Abstract]

Schedule of Carrying Value of Loan Servicing Rights Assets

The carrying value of the loan servicing rights assets is shown in the table below:

(dollars in thousands)	March 31, 2024		December 31, 2023
Loan Servicing Rights
Residential mortgage	$	171,968	$	171,915
SBA	2,301		2,737
Total loan servicing rights	$	174,269	$	174,652

The table below is an analysis of the activity in the Company’s MSRs and valuation allowance:

(dollars in thousands)	Three Months Ended March 31,
Residential mortgage servicing rights	2024		2023
Beginning carrying value, net	$	171,915	$	147,014
Additions	5,456		7,730
Amortization	(5,403)		(4,758)
Ending carrying value, net	$	171,968	$	149,986

The table below is an analysis of the activity in the Company’s SBA loan servicing rights and valuation allowance:

(dollars in thousands)	Three Months Ended March 31,
SBA servicing rights	2024		2023
Beginning carrying value, net	$	2,737	$	3,443
Additions	19		44
Amortization	(455)		(321)
Ending carrying value, net	$	2,301	$	3,166

Schedule of Sensitivity of Fair Value to Adverse Changes in Model Inputs and/or Assumptions

The key metrics and the sensitivity of the fair value to adverse changes in model inputs and/or assumptions are summarized below:

(dollars in thousands)	March 31, 2024			December 31, 2023
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	12,640,061		$	12,454,454
Composition of residential loans serviced for others:
FHLMC	17.50		%	17.54		%
FNMA	50.48		%	50.51		%
GNMA	32.02		%	31.95		%
Total	100.00		%	100.00		%
Weighted average term (months)	355			355
Weighted average age (months)	29			27
Modeled prepayment speed	8.41		%	8.56		%
Decline in fair value due to a 10% adverse change	(5,424)			(4,492)
Decline in fair value due to a 20% adverse change	(11,079)			(9,444)
Weighted average discount rate	10.73		%	10.98		%
Decline in fair value due to a 10% adverse change	(6,742)			(5,110)
Decline in fair value due to a 20% adverse change	(13,926)			(11,181)

(dollars in thousands)	March 31, 2024			December 31, 2023
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	252,465		$	271,164
Weighted average life (in years)	3.18			3.31
Modeled prepayment speed	21.62		%	20.83		%
Decline in fair value due to a 10% adverse change	(170)			(171)
Decline in fair value due to a 20% adverse change	(324)			(327)
Weighted average discount rate	13.00		%	14.70		%
Decline in fair value due to a 100 basis point adverse change	(66)			(69)
Decline in fair value due to a 200 basis point adverse change	(128)			(135)