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SBA Servicing Asset
 9 Months Ended
Sep. 30, 2023
Transfers and Servicing [Abstract]  
SBA Servicing Asset SBA Servicing AssetThe Company periodically sells portions of SBA loans and retains rights to service the loans. Loans serviced for others are not included in the accompanying balance sheet. The unpaid principal balances of SBA loans serviced for others was $283.9 million and $318.6 million at September 30, 2023 and December 31, 2022, respectively.
The following table summarizes SBA servicing asset activity for the periods indicated:
For the Three Months Ended
September 30,		For the Nine Months Ended
September 30,
($ in thousands)2023202220232022
Beginning balance$5,233 $4,586 $5,210 $3,938 
Additions to servicing asset— 921 150 3,164 
Recovery (impairment) of SBA servicing asset(337)127 255 (949)
Amortization of servicing asset(498)(365)(1,217)(884)
Ending balance$4,398 $5,269 $4,398 $5,269 
The fair market value of the SBA servicing asset as of September 30, 2023 and December 31, 2022, was $4.4 million and $5.2 million, respectively. Recovery or impairment adjustments to servicing rights are mainly due to market-based assumptions associated with discounted cash flows, loan prepayment speeds, and changes in interest rates. A significant change in prepayments of the loans in the servicing portfolio could result in significant changes in the valuation adjustments, thus creating potential volatility in the carrying amount of servicing rights.
The Company assumed a weighted average prepayment rate of 16.9%, weighted average term of 3.94 years, and a weighted average discount rate of 17.1% at September 30, 2023.
The Company assumed a weighted average prepayment rate of 14.2%, weighted average term of 4.45 years, and a weighted average discount rate of 18.8% at December 31, 2022.