LOAN SERVICING RIGHTS (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2024		December 31, 2023
Loan Servicing Rights
Residential mortgage	$	145,306	$	171,915
SBA	2,156		2,737
Total loan servicing rights	$	147,462	$	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 June 30,				Six Months Ended June 30,
Residential mortgage servicing rights	2024		2023		2024		2023
Beginning carrying value, net	$	171,968	$	149,986	$	171,915	$	147,014
Additions	7,421		14,731		12,877		22,461
Amortization	(5,264)		(4,696)		(10,667)		(9,454)
Disposals	(28,819)		—		(28,819)		—
Ending carrying value, net	$	145,306	$	160,021	$	145,306	$	160,021

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 June 30,				Six Months Ended June 30,
SBA servicing rights	2024		2023		2024		2023
Beginning carrying value, net	$	2,301	$	3,166	$	2,737	$	3,443
Additions	57		271		76		315
Amortization	(202)		(340)		(657)		(661)
Ending carrying value, net	$	2,156	$	3,097	$	2,156	$	3,097

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)	June 30, 2024			December 31, 2023
Residential mortgage servicing rights
Unpaid principal balance of loans serviced for others	$	10,600,275		$	12,454,454
Composition of residential loans serviced for others:
FHLMC	17.45		%	17.54		%
FNMA	51.20		%	50.51		%
GNMA	31.35		%	31.95		%
Total	100.00		%	100.00		%
Weighted average term (months)	354			355
Weighted average age (months)	35			27
Modeled prepayment speed	6.87		%	8.56		%
Decline in fair value due to a 10% adverse change	(2,708)			(4,492)
Decline in fair value due to a 20% adverse change	(5,959)			(9,444)
Weighted average discount rate	11.18		%	10.98		%
Decline in fair value due to a 10% adverse change	(4,399)			(5,110)
Decline in fair value due to a 20% adverse change	(10,089)			(11,181)

(dollars in thousands)	June 30, 2024			December 31, 2023
SBA servicing rights
Unpaid principal balance of loans serviced for others	$	241,874		$	271,164
Weighted average life (in years)	3.09			3.31
Modeled prepayment speed	22.33		%	20.83		%
Decline in fair value due to a 10% adverse change	(167)			(171)
Decline in fair value due to a 20% adverse change	(318)			(327)
Weighted average discount rate	12.02		%	14.70		%
Decline in fair value due to a 100 basis point adverse change	(61)			(69)
Decline in fair value due to a 200 basis point adverse change	(120)			(135)