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Servicing Assets
3 Months Ended
Mar. 31, 2024
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 $19.4 million and $27.1 million, respectively, with the servicing rights retained and recognized a net gain on sale of $1.1 million and $1.3 million, respectively, during the three months ended March 31, 2024 and 2023. Loan servicing income was $919 thousand and $860 thousand for the three months ended March 31, 2024 and 2023, respectively.
The following table presents the composition of servicing assets with key assumptions used to estimate the fair value as of the dates indicated:
March 31, 2024December 31, 2023
($ in thousands)Residential MortgageCRE SBAC&I SBATotalResidential MortgageCRE SBAC&I SBATotal
Carrying amount
$47 $5,985 $512 $6,544 $49 $6,135 $482 $6,666 
Fair value
$111 $7,674 $772 $8,557 $104 $8,284 $728 $9,116 
Discount rate
7.85 %12.14 %15.85 %9.93 %12.30 %15.46 %
Prepayment speed
12.14 %19.08 %14.05 %12.75 %16.71 %13.97 %
Weighted-average remaining life19.5 years20.9 years7.3 years19.8 years21.0 years7.1 years
Underlying loans being serviced
$10,364 $465,756 $63,919 $540,039 $10,666 $461,300 $60,265 $532,231 
The following tables present activity in servicing assets for the periods indicated:
Three Months Ended March 31,
20242023
($ in thousands)Residential MortgageCRE SBAC&I SBATotalResidential MortgageCRE SBAC&I SBATotal
Balance at beginning of period
$49 $6,135 $482 $6,666 $64 $6,831 $452 $7,347 
Additions
— 177 75 252 — 376 45 421 
Amortization
(2)(327)(45)(374)(7)(365)(51)(423)
Balance at end of period
$47 $5,985 $512 $6,544 $57 $6,842 $446 $7,345