Quarterly report pursuant to Section 13 or 15(d)

Servicing Assets

v3.20.2
Servicing Assets
 9 Months Ended
Sep. 30, 2020
Transfers And Servicing [Abstract]  
Servicing Assets

Note 4 — Servicing Assets

The changes in servicing assets for the three months ended September 30, 2020 and 2019 were as follows:

 

 

 

Three Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Servicing assets:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

6,186

 

 

$

7,567

 

Addition related to sale of SBA loans

 

 

686

 

 

 

517

 

Amortization

 

 

(524

)

 

 

(648

)

Balance at end of period

 

$

6,348

 

 

$

7,436

 

The changes in servicing assets for the nine months ended September 30, 2020 and 2019 were as follows:

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Servicing assets:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

6,956

 

 

$

8,520

 

Addition related to sale of SBA loans

 

 

1,040

 

 

 

1,177

 

Amortization

 

 

(1,648

)

 

 

(2,261

)

Balance at end of period

 

$

6,348

 

 

$

7,436

 

 

At September 30, 2020 and December 31, 2019, we serviced loans sold to unaffiliated parties in the amounts of $427.5 million and $433.6 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 $1.1 million for the three months ended September 30, 2020 and 2019, respectively. The Company recorded servicing fee income of $3.4 million and $3.3 million for the nine months ended September 30, 2020 and 2019, respectively. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $524,000 and $648,000 for the three months ended September 30, 2020 and 2019, respectively, and $1.6 million and $2.3 million for the nine months ended September 30, 2020 and 2019, respectively.