XML 26 R15.htm IDEA: XBRL DOCUMENT v3.24.3
GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES
 9 Months Ended
Sep. 30, 2024
Transfers and Servicing [Abstract]  
GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES GOVERNMENT GUARANTEED LOAN SERVICING ACTIVITIES
At September 30, 2024 and December 31, 2023, the principal balance of government guaranteed loans, excluding PPP loans, retained by the Company was $395,155 and $395,877, respectively, of which $155,345 and $181,459 represented the guaranteed portion of the loans. Loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of government guaranteed loans serviced for others requiring recognition of a servicing asset were $1,009,797 and $855,756 at September 30, 2024 and December 31, 2023, respectively.
Activity for government guaranteed loan servicing rights for the three and nine months ended September 30, 2024 and September 30, 2023 follows:
Three Months EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Beginning of period
$15,770 $12,820 $14,959 $10,906 
Additions
1,704 2,543 5,396 6,390 
Amortization
(1,508)(1,147)(4,389)(3,080)
End of period
$15,966 $14,216 $15,966 $14,216 
The fair value of government guaranteed loan servicing rights was $18,596 and $16,318 at September 30, 2024 and December 31, 2023, respectively. Fair value was determined using a weighted average discount rate of 13.75% and a weighted average prepayment speed of 13.16% at September 30, 2024. Fair value was determined using a weighted average discount rate of 14.50% and a weighted average prepayment speed of 11.42% at December 31, 2023. The government guaranteed loan servicing rights are amortized over the life of a loan on a loan-by-loan basis.
The following table presents the components of net gain on sale of government guaranteed loans for the three and nine months ended September 30, 2024 and September 30, 2023:
Three Months EndedNine Months Ended
September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Gain on sale of guaranteed portion of government guaranteed loans
$4,439 $4,596 $14,431 $11,998 
Loss on sale of unguaranteed portion of government guaranteed loans— — — (797)
Costs recognized on sale of government guaranteed loans
— — — (15)
Fair value of loan servicing rights created
1,704 2,543 5,396 6,390 
Gain on sale of government guaranteed loans, net
$6,143 $7,139 $19,827 $17,576