v3.26.1
Servicing Assets
3 Months Ended
Mar. 31, 2026
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 $21.8 million and $16.6 million, respectively, with the servicing rights retained and recognized a net gain on sale of $1.4 million and $887 thousand, respectively, during the three months ended March 31, 2026 and 2025. Loan servicing income was $801 thousand and $725 thousand, respectively, for the three months ended March 31, 2026 and 2025.
The following table presents the composition of servicing assets with key assumptions used to estimate the fair value as of the dates indicated:
March 31, 2026
December 31, 2025
($ in thousands)Residential MortgageCRE SBAC&I SBATotalResidential MortgageCRE SBAC&I SBATotal
Carrying amount
$31 $4,857 $803 $5,691 $34 $4,900 $693 $5,627 
Fair value
$70 $8,842 $1,187 $10,099 $80 $8,906 $1,101 $10,087 
Discount rate
7.85 %12.75 %12.75 %7.85 %12.75 %12.75 %
Prepayment speed
12.06 %17.30 %16.28 %12.52 %16.67 %16.17 %
Weighted-average remaining life17.5 years19.7 years7.5 years17.7 years19.9 years7.4 years
Underlying loans being serviced
$6,534 $426,246 $73,865 $506,645 $7,550 $425,876 $68,982 $502,408 
The following tables present activity in servicing assets for the periods indicated:
Three Months Ended March 31,
2026
2025
($ in thousands)Residential MortgageCRE SBAC&I SBATotalResidential MortgageCRE SBAC&I SBATotal
Balance at beginning of period
$34 $4,900 $693 $5,627 $42 $5,226 $569 $5,837 
Additions
— 275 206 481 — 273 70 343 
Amortization
(3)(318)(96)(417)(4)(415)(130)(549)
Balance at end of period
$31 $4,857 $803 $5,691 $38 $5,084 $509 $5,631