Quarterly report pursuant to Section 13 or 15(d)

Servicing Assets and Liabilities

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Servicing Assets and Liabilities
 9 Months Ended
Sep. 30, 2016
Transfers and Servicing [Abstract]  
Servicing Assets and Liabilities
Servicing Assets and Liabilities

The changes in servicing assets and liabilities for the nine months ended September 30, 2016 and 2015 were as follows:

 
2016
 
2015
 
(in thousands)
Servicing assets:
 
 
 
Balance at beginning of period
$
11,744

 
$
13,773

Addition related to sale of SBA loans
1,452

 
1,739

Amortization
(2,363
)
 
(3,526
)
Balance at end of period
$
10,833

 
$
11,986

 
 
 
 
Servicing liabilities:
 
 
 
Balance at beginning of period
$
4,784

 
$
5,971

Amortization
(1,358
)
 
(795
)
Balance at end of period
$
3,426

 
$
5,176



At September 30, 2016 and 2015, we serviced loans sold to unaffiliated parties in the amounts of $485.1 million and $468.9 million, respectively. These represented loans that have been 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. All of the loans serviced were SBA loans.

The Company recorded servicing fee income of $1.2 million for each of the three-month periods ended September 30, 2016 and 2015. Servicing fee income was $3.6 million and $3.5 million for nine months ended September 30, 2016 and 2015, respectively. Servicing fee income, net of amortization of servicing assets and liabilities, is included in other operating income in the consolidated statements of income. Net amortization expense was $598,000 and $1.5 million for the three months ended September 30, 2016 and 2015, respectively, and $1.0 million and $2.7 million for nine months ended September 30, 2016 and 2015, respectively.