v3.25.2
Servicing Assets
3 Months Ended
Mar. 31, 2025
Transfers and Servicing [Abstract]  
Servicing Assets Servicing Assets
The Company sells SBA and certain residential mortgage loans with servicing retained. SBA loans are included in commercial real estate loans (“CRE SBA”) and commercial and industrial loans (“C&I SBA”). The Company sold loans of $16.6 million and $19.4 million, respectively, with the servicing rights retained and recognized a net gain on sale of $887 thousand and $1.1 million, respectively, during the three months ended March 31, 2025 and 2024. Loan servicing income was $725 thousand and $919 thousand, respectively, for the three months ended March 31, 2025 and 2024.
The following table presents the composition of servicing assets with key assumptions used to estimate the fair value as of the dates indicated:
March 31, 2025December 31, 2024
($ in thousands)Residential MortgageCRE SBAC&I SBATotalResidential MortgageCRE SBAC&I SBATotal
Carrying amount
$38 $5,084 $509 $5,631 $42 $5,226 $569 $5,837 
Fair value
$81 $9,123 $1,018 $10,222 $84 $7,750 $894 $8,728 
Discount rate
7.85 %13.50 %13.50 %7.85 %12.14 %15.85 %
Prepayment speed
13.85 %16.60 %16.60 %13.93 %17.82 %13.02 %
Weighted-average remaining life22.7 years20.1 years7.3 years23.8 years20.7 years7.4 years
Underlying loans being serviced
$8,490 $437,823 $64,614 $510,927 $9,072 $445,601 $70,909 $525,582 
The following tables present activity in servicing assets for the periods indicated:
Three Months Ended March 31,
20252024
($ in thousands)Residential MortgageCRE SBAC&I SBATotalResidential MortgageCRE SBAC&I SBATotal
Balance at beginning of period
$42 $5,226 $569 $5,837 $49 $6,135 $482 $6,666 
Additions
— 273 70 343 — 177 75 252 
Amortization
(4)(415)(130)(549)(2)(327)(45)(374)
Balance at end of period
$38 $5,084 $509 $5,631 $47 $5,985 $512 $6,544