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Transfers and Servicing
 12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Transfers and Servicing of Financial Assets SERVICING ASSETS
At December 31, 2024, total servicing assets of $10.1 million comprised $8.6 million in SBA servicing assets and $1.5 million in mortgage related servicing assets. At December 31, 2023, servicing assets totaled $9.6 million, comprising $7.5 million in SBA servicing assets and $2.1 million in mortgage related servicing assets. At December 31, 2024 and 2023, the Company did not have a valuation allowance on its servicing assets.
The changes in servicing assets for the years ended December 31, 2024, 2023, and 2022, were as follows:
Year Ended December 31,
202420232022
(Dollars in thousands)
Balance at beginning of period$9,631 $11,628 $10,418 
Additions through originations of servicing assets3,244 1,892 5,200 
Amortization(2,824)(3,889)(3,990)
Balance at end of period$10,051 $9,631 $11,628 
Loans serviced for others are not reported as assets. The principal balances of loans serviced for other institutions were $975.0 million and $987.4 million at December 31, 2024 and 2023, respectively.
The Company utilizes the discounted cash flow method to calculate the initial excess servicing assets. The inputs used in evaluating servicing assets for impairment at December 31, 2024 and 2023, are presented below.
December 31,
20242023
SBA Servicing Assets:
Weighted-average discount rate10.18%11.12%
Constant prepayment rate9.33%12.17%
Mortgage Servicing Assets:
Weighted-average discount rate11.13%11.00%
Constant prepayment rate4.37%9.52%