Annual report pursuant to Section 13 and 15(d)

Servicing Assets and Liabilities (Notes)

v3.10.0.1
Servicing Assets and Liabilities (Notes)
 12 Months Ended
Dec. 31, 2018
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, 2018 and 2017 were as follows:
 
As of December 31,
 
2018
 
2017
 
(in thousands)
Servicing assets:
 
 
 
Balance at beginning of period
$
10,218

 
$
10,564

Addition related to sale of SBA loans
1,589

 
2,590

Amortization
(3,287
)
 
(3,266
)
Reversal of allowance
—

 
330

Balance at end of period
$
8,520

 
$
10,218

 
 
 
 
Servicing liabilities:
 
 
 
Balance at beginning of period
$
2,217

 
$
3,143

Amortization
(700
)
 
(859
)
Reversal of allowance
—

 
(67
)
Balance at end of period
$
1,517

 
$
2,217


At December 31, 2018 and 2017, we serviced the loans sold to unaffiliated parties in the amount of $448.6 million and $476.5 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 for each of the years ended December 31, 2018, 2017 and 2016, respectively. Net amortization expense was $2.6 million, $2.4 million and $1.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Servicing fee income, net of amortization of servicing assets and liabilities, is included in other operating income in the consolidated statements of income.