Servicing Assets |
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| Transfers and Servicing [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Servicing Assets |
Note 4 — Servicing AssetsThe activity in servicing assets was as follows for the periods indicated:
At September 30, 2025 and December 31, 2024, we serviced loans sold to unaffiliated parties of $575.6 million and $560.1 million, respectively. These represented loans that were sold for which the Bank continues to provide servicing. These loans are maintained off-balance sheet and are not included in the loans receivable balance. At September 30, 2025, all the loans serviced, except for $32.6 million of residential mortgage loans, were SBA loans. The Company recorded servicing fee income of $1.3 million for both the three months ended September 30, 2025 and 2024, respectively and $4.0 million for both the nine months ended September 30, 2025 and 2024, respectively. Servicing fee income, net of the amortization of servicing assets, is included in in the consolidated statements of income. Amortization expense was $0.5 million and $0.6 million for the three months ended September 30, 2025 and 2024 and $1.9 million for both of the nine months ended September 30, 2025 and 2024, respectively. The fair value of servicing rights was $8.3 million at September 30, 2025 and was determined using discount rates ranging from 11.2% to 19.4% and prepayment speeds ranging from 10.0% to 27.6%, depending on the stratification of the specific right. The fair value of servicing rights was $7.9 million at December 31, 2024 and was determined using discount rates ranging from 10.8% to 27.3% and prepayment speeds ranging from 15.4% to 21.2%, depending on the stratification of the specific right. |
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