Annual report pursuant to Section 13 and 15(d)

Servicing Assets and Liabilities (Notes)

v3.6.0.2
Servicing Assets and Liabilities (Notes)
 12 Months Ended
Dec. 31, 2016
Transfers and Servicing [Abstract]  
Servicing of Assets and Liabilities
Servicing Assets and Liabilities
The changes in servicing assets and liabilities for the years ended December 31, 2016 and 2015 were as follows:
 
As of December 31,
 
2016
 
2015
 
(In thousands)
Servicing assets:
 
 
 
Balance at beginning of period
$
11,744

 
$
13,773

Addition related to sale of SBA loans
2,184

 
2,573

Impairment provision
—

 
(330
)
Amortization
(3,364
)
 
(4,272
)
Balance at end of period
$
10,564

 
$
11,744

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

 
$
5,971

Amortization
(1,641
)
 
(1,187
)
Balance at end of period
$
3,143

 
$
4,784


At December 31, 2016 and 2015, we serviced the loans sold to unaffiliated parties in the amount of $484.7 million and $474.0 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 being serviced were SBA loans.
The Company recorded servicing fee income of $4.7 million, $4.6 million and $3.8 million for the years ended December 31, 2016, 2015 and 2014, respectively. Net amortization expense was $1.7 million, $3.1 million and $1.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. Servicing fee income, net of amortization of servicing assets and liabilities, is included in other operating income in the consolidated statements of income.