v3.25.2
Servicing Assets
 6 Months Ended
Jun. 30, 2025
Servicing Asset [Abstract]  
Servicing Assets Servicing Assets
The Company recognizes the rights to service SBA loans for others as servicing assets when the benefit of servicing is expected to more than adequately compensate the Company for performing the servicing. Servicing assets are initially recorded at fair value and subsequently amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying loans.
The Company periodically stratifies its servicing assets into groupings based on risk characteristics and evaluates each group for impairment based on the fair value. Based on the impairment test as of June 30, 2025 and December 31, 2024, there was no impairment.
The following table presents the activity in the servicing assets for the three and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
($ in thousands)2025202420252024
Beginning balance$10,848 $11,405 $10,834 $11,741 
Additions from loans sold with servicing retained570 746 1,251 1,298 
Amortized to expense(846)(1,108)(1,513)(1,996)
Ending balance$10,572 $11,043 $10,572 $11,043 
The fair value of the servicing assets was $15.7 million as of June 30, 2025, which was determined using discount rates ranging from 4.76% to 11.53% and prepayment speeds ranging from 12.90% to 13.60%, depending on the stratification of the specific assets.
The fair value of the servicing assets was $16.8 million as of June 30, 2024, which was determined using discount rates ranging from 3.78% to 11.25% and prepayment speeds ranging from 12.70% to 12.90% depending on the stratification of the specific assets.