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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets |
Goodwill and Intangible Assets | Note 11 Goodwill and Intangible Assets ​ Goodwill and other intangible assets ​ In connection with our acquisitions, the Company’s goodwill was $306.0 million as of December 31, 2023. Goodwill is measured as the excess of the fair value of consideration paid over the fair value of net assets acquired. No goodwill impairment was recorded during the years ended December 31, 2023 or December 31, 2022. ​ In April 2023, the Company completed the acquisition of Cambr Solutions, LLC. Cambr is a deposit acquisition and processing platform that generates core deposits from accounts offered through embedded finance companies. The Company recorded goodwill of $26.9 million and intangibles of $18.0 million related to the acquisition. More information regarding the Cambr acquisition is included in note 24 below. ​ The gross carrying amount of other intangible assets and the associated accumulated amortization at December 31, 2023 and December 31, 2022, are presented as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2023 | ​ | December 31, 2022
​ | ​ | Gross | ​ | ​ | ​ | ​ | Net | ​ | Gross | ​ | ​ | ​ | ​ | Net
​ | ​ | carrying | ​ | Accumulated | ​ | carrying | ​ | carrying | ​ | Accumulated | ​ | carrying
​ | ​ | amount | ​ | amortization | ​ | amount | ​ | amount | ​ | amortization | ​ | amount
Core deposit intangible |  | $ | 91,566 |  | $ | (50,095) | ​ | $ | 41,471 | ​ | $ | 91,566 |  | $ | (44,775) | ​ | $ | 46,791
Customer relationship intangible | ​ |  | 17,000 | ​ |  | (1,867) | ​ |  | 15,133 | ​ |  | 1,300 | ​ |  | (32) | ​ |  | 1,268
Internally developed technology | ​ | ​ | 2,300 | ​ | ​ | (230) | ​ | ​ | 2,070 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Total | ​ | $ | 110,866 | ​ | $ | (52,192) | ​ | $ | 58,674 | ​ | $ | 92,866 | ​ | $ | (44,807) | ​ | $ | 48,059
​ The Company is amortizing intangibles from acquisitions over a weighted average period of 9.8 years from the date of the respective acquisitions. The core deposit and customer relationship intangibles are being amortized over a weighted average period of 10 years, and the internally developed technology intangible is being amortized over a weighted average period of five years. The Company recognized other intangible assets amortization expense of $7.4 million, $2.3 million and $1.2 million during the years ended December 31, 2023, 2022 and 2021, respectively. ​ The following table shows the estimated future amortization expense during the next five years for other intangible assets as of December 31, 2023: ​
​ | ​ | ​
Years ending December 31, | ​ | Amount
2024 | $ | 7,908
2025 | ​ | 7,786
2026 | ​ | 7,664
2027 | ​ | 7,542
2028 | ​ | 6,142
​ Servicing Rights ​ Mortgage servicing rights ​ MSRs represent rights to service loans originated by the Company and sold to government-sponsored enterprises including FHLMC, FNMA, GNMA and FHLB and are included in other assets in the consolidated statements of financial condition. Mortgage loans serviced for others were $0.5 billion and $1.0 billion at December 31, 2023 and 2022, respectively. ​ Below are the changes in the MSRs for the years presented: ​
​ | ​ | ​ | ​ | ​ | ​
​ | For the years ended December 31,
​ | 2023 | ​ | 2022
Beginning balance | $ | 9,162 |  | $ | 5,957
Originations | ​ | 1,183 | ​ | ​ | 4,187
Sales |  | (4,664) | ​ |  | —
Recovery (impairment) | ​ | 5 | ​ | ​ | (60)
Amortization |  | (775) | ​ |  | (922)
Ending balance | ​ | 4,911 | ​ | ​ | 9,162
Fair value of mortgage servicing rights | $ | 7,124 | ​ | $ | 13,622
​ During the year ended December 31, 2023, the Company sold rights to service loans totaling $486.7 million in unpaid principal balances from our mortgage servicing rights portfolio. As a result of the sale, the book value of our mortgage servicing right intangible decreased $4.7 million and generated a gain of $1.1 million included in mortgage banking income in the consolidated statements of operations. ​ The fair value of MSRs was determined based upon a discounted cash flow analysis. The cash flow analysis included assumptions for discount rates and prepayment speeds. The discount rate ranged from 10.0% to 10.5%, and the constant prepayment speed ranged from 6.5% to 15.8% for the December 31, 2023 valuation. For the December 31, 2022 valuation, the discount rate was 10.0%, and the constant prepayment speed ranged from 7.6% to 8.2%. Included in mortgage banking income in the consolidated statements of operations was servicing income of $2.4 million and $2.8 million for the years ended December 31, 2023 and 2022, respectively. ​ MSRs are evaluated and impairment is recognized to the extent fair value is less than the carrying amount. The Company evaluates impairment by stratifying MSRs based on the predominant risk characteristics of the underlying loans, including loan type and loan term. The Company is amortizing the MSRs in proportion to and over the period of the estimated net servicing income of the underlying loans. ​ The following table shows the estimated future amortization expense during the next five years for the MSRs as of December 31, 2023: ​
​ | ​ | ​
Years ending December 31, | ​ | Amount
2024 | $ | 562
2025 | ​ | 498
2026 | ​ | 441
2027 | ​ | 390
2028 | ​ | 346
​ SBA servicing asset ​ The SBA servicing asset represents the value associated with servicing small business real estate loans that have been sold to outside investors with servicing retained. The SBA servicing asset is evaluated and impairment is recognized to the extent fair value is less than the carrying amount. The Company evaluates impairment by stratifying the SBA servicing asset based on the predominant risk characteristics of the underlying loans, including loan type and loan term. The Company is amortizing the SBA servicing asset in proportion to and over the period of the estimated net servicing income of the underlying loans. The Company serviced $108.8 million and $125.7 million of SBA loans that have been sold into the secondary market, as of December 31, 2023 and 2022, respectively. The Company recognized SBA servicing asset fee income of $0.9 million and $0.2 million during the years ended December 31, 2023 and 2022, respectively. ​ Below are the changes in the SBA servicing asset for the years presented: ​
​ | ​ | ​ | ​ | ​ | ​
​ | For the years ended December 31,
​ | 2023 | ​ | 2022
Beginning balance | $ | 2,666 |  | $ | —
Acquired through acquisition | ​ | — | ​ | ​ | 3,126
Originations | ​ | 358 | ​ | ​ | 9
Disposals |  | (353) | ​ |  | (139)
Impairment | ​ | (75) | ​ | ​ | (231)
Amortization | ​ | (156) | ​ | ​ | (99)
Ending balance | ​ | 2,440 | ​ | ​ | 2,666
Fair value of SBA servicing asset | $ | 2,440 | ​ | $ | 2,666
​ The Company uses assumptions and estimates in determining the fair value of the SBA servicing asset. These assumptions include prepayment speeds, discount rates, and other assumptions. The assumptions used in the valuation were based on input from buyers, brokers and other qualified personnel, as well as market knowledge. For the years ended December 31, 2023 and 2022, the key assumptions used to determine the fair value of the Company’s SBA servicing asset included a weighted average lifetime constant prepayment rate equal to 14.66% and 12.36%, respectively, and a weighted average discount rate equal to 12.26% and 15.24%, respectively.

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