Annual report pursuant to Section 13 and 15(d)

Servicing Assets and Liabilities (Notes)

v3.8.0.1
Servicing Assets and Liabilities (Notes)
 12 Months Ended
Dec. 31, 2017
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, 2017 and 2016 were as follows:
 
As of December 31,
 
2017
 
2016
 
(In thousands)
Servicing assets:
 
 
 
Balance at beginning of period
$
10,564

 
$
11,744

Addition related to sale of SBA loans
2,590

 
2,184

Amortization
(3,266
)
 
(3,364
)
Reversal of allowance
330

 
—

Balance at end of period
$
10,218

 
$
10,564

 
 
 
 
Servicing liabilities:
 
 
 
Balance at beginning of period
$
3,143

 
$
4,784

Amortization
(859
)
 
(1,641
)
Reversal of allowance
(67
)
 
—

Balance at end of period
$
2,217

 
$
3,143


At December 31, 2017 and 2016, we serviced the loans sold to unaffiliated parties in the amount of $476.5 million and $484.7 million, respectively. These represent 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, $4.7 million and $4.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Net amortization expense was $2.4 million, $1.7 million and $3.1 million for the years ended December 31, 2017, 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.