Quarterly report pursuant to Section 13 or 15(d)

Servicing Assets and Liabilities

v3.19.3
Servicing Assets and Liabilities
 6 Months Ended
Jun. 30, 2019
Transfers and Servicing [Abstract]  
Servicing Assets and Liabilities Servicing Assets and Liabilities

The changes in servicing assets and liabilities for the three months ended June 30, 2019 and 2018 were as follows:

 
2019
 
2018
 
(in thousands)
Servicing assets:
 
 
 
Balance at beginning of period
$
7,978

 
$
9,867

Addition related to sale of SBA loans
344

 
406

Amortization
(755
)
 
(1,018
)
Balance at end of period
$
7,567

 
$
9,255

 
 
 
 
Servicing liabilities:
 
 
 
Balance at beginning of period
$
1,420

 
$
2,022

Amortization
(182
)
 
(185
)
Balance at end of period
$
1,238

 
$
1,837



The changes in servicing assets and liabilities for the six months ended June 30, 2019 and 2018 were as follows:

 
2019
 
2018
 
(in thousands)
Servicing assets:
 
 
 
Balance at beginning of period
$
8,520

 
$
10,218

Addition related to sale of SBA loans
659

 
841

Amortization
(1,612
)
 
(1,804
)
Balance at end of period
$
7,567

 
$
9,255

 
 
 
 
Servicing liabilities:
 
 
 
Balance at beginning of period
$
1,517

 
$
2,217

Amortization
(279
)
 
(380
)
Balance at end of period
$
1,238

 
$
1,837




At June 30, 2019 and December 31, 2018, we serviced loans sold to unaffiliated parties in the amounts of $426.7 million and $448.6 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 $1.1 million and $1.2 million for the three months ended June 30, 2019 and 2018, respectively. The Company recorded servicing fee income of $2.2 million and $2.4 million for the six months ended June 30, 2019 and 2018, respectively. Servicing fee income, net of the amortization of servicing assets and liabilities, is included in other operating income in the consolidated statements of income. Net amortization expense was $573,000 and $833,000 for the three months ended June 30, 2019 and 2018, respectively, and $1.3 million and $1.4 million for the six months ended June 30, 2019 and 2018, respectively.