Quarterly report pursuant to Section 13 or 15(d)

Servicing Assets and Liabilities

v3.19.1
Servicing Assets and Liabilities
 3 Months Ended
Mar. 31, 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 March 31, 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
315

 
435

Amortization
(857
)
 
(786
)
Balance at end of period
$
7,978

 
$
9,867

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

 
$
2,217

Amortization
(97
)
 
(195
)
Balance at end of period
$
1,420

 
$
2,022



At March 31, 2019 and December 31, 2018, we serviced loans sold to unaffiliated parties in the amounts of $438.4 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 for each of the three month periods ended March 31, 2019 and 2018. 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 $760,000 and $591,000 for the three months ended March 31, 2019 and 2018, respectively.