GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES |
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| Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES | GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES At March 31, 2026 and December 31, 2025, the balance of government guaranteed loans HFI, excluding PPP loans, retained by the Company was $287,282 and $302,986, respectively, of which $75,057 and $70,123 represented the guaranteed portion of the loans. Loans serviced for others are not included in the accompanying Condensed Consolidated Balance Sheets. The unpaid principal balances of government guaranteed loans serviced for others requiring recognition of a servicing asset were $832,047 and $885,505 at March 31, 2026 and December 31, 2025, respectively. In December 2025, the Company sold SBA 7(a) loans with principal balance of $96,602 to Banesco USA as part of the Company’s restructure related to the discontinuance of SBA 7(a) lending. Of those loans, there were $26,749 of loans with a servicing asset of $1,691. Activity for government guaranteed loan servicing rights for the three months ended March 31, 2026 and March 31, 2025 follows:
The fair value of government guaranteed loan servicing rights was $14,653 and $16,041 at March 31, 2026 and December 31, 2025, respectively. Fair value was determined using a weighted average discount rate of 14.13% and a weighted average prepayment speed of 11.25% at March 31, 2026. Fair value was determined using a weighted average discount rate of 13.88% and a weighted average prepayment speed of 11.16% at December 31, 2025. The government guaranteed loan servicing rights are amortized over the life of a loan on a loan-by-loan basis. The following table presents the components of net gain on sale of government guaranteed loans for the three months ended March 31, 2026 and March 31, 2025:
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