XML 30 R16.htm IDEA: XBRL DOCUMENT v3.25.4
Servicing Asset
 12 Months Ended
Dec. 31, 2025
Transfers and Servicing [Abstract]  
Servicing Asset Servicing Asset
Activity for the servicing asset and the related changes in fair value for the twelve months ended December 31, 2025, 2024 and 2023 are shown in the table below.
Twelve Months Ended
 December 31, 2025December 31, 2024December 31, 2023
Beginning balance$16,389 $10,567 $6,255 
Additions:
     Originated 1
11,870 8,359 5,775 
Subtractions:
     Paydowns(4,297)(3,005)(1,842)
     Changes in fair value due to changes in valuation inputs
     or assumptions used in the valuation model 		(1,169)468 379 
     Loan servicing asset revaluation(5,466)(2,537)(1,463)
Ending balance$22,793 $16,389 $10,567 

1 Balance includes $4.1 million of originated servicing asset related to the sale of single tenant lease financing loans sold during 2025.

Loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balances of these loans serviced for others as of December 31, 2025, 2024 and 2023 are shown in the table below.
 December 31, 2025December 31, 2024December 31, 2023
Loan portfolios serviced for:
   SBA guaranteed loans$1,120,553 $862,089 $531,927 
   Single tenant lease financing825,207 — — 
Total$1,945,760 $862,089 $531,927 

Loan servicing revenue totaled $8.7 million, $6.2 million and $3.8 million during the twelve months ended December 31, 2025, 2024 and 2023, respectively. Loan servicing asset revaluation, which represents paydowns and the change in fair value of the servicing asset, resulted in a $5.5 million, $2.5 million and $1.5 million downward valuation for the twelve months ended December 31, 2025, 2024 and 2023, respectively.

The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Though fluctuations in prepayment speeds and changes in secondary market premiums generally have the most substantial impact on the fair value of servicing rights, other influencing factors include changing economic conditions, changes to the discount rate assumption and the weighted average life of the servicing portfolio. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time; however, those assumptions may change over time. Refer to Note 16 - Fair Value of Financial Instruments for further details.