RESERVE FOR LOSS ON REPURCHASED LOANS

The Company records provisions to the representation and warranty reserve representing its initial estimate of losses on mortgage repurchases or loss reimbursements. Provisions added to the reserve for loss on repurchased loans are initially recorded against net revenue on mortgage banking activities at the time of sale, and any subsequent change in the provision is then recorded under non-interest expense in the Consolidated Statements of Operations as an increase or decrease to provision for loan repurchases.

Total provision for loan repurchases was $270 thousand and $851 thousand for the three months ended June 30, 2017 and 2016, respectively, and $787 thousand and $1.2 million for the six months ended June 30, 2017 and 2016, respectively. Of these total provisions for loan repurchases, the Company recorded an initial provision for loan repurchases of $673 thousand and $992 thousand for the three months ended June 30, 2017 and 2016, respectively, and $1.5 million and $1.7 million for the six months ended June 30, 2017 and 2016, respectively. In addition, the Company recorded subsequent reductions in the provision of $403 thousand and $141 thousand for the three months ended June 30, 2017 and 2016, respectively, and $728 thousand and $500 thousand for the six months ended June 30, 2017 and 2016, respectively.

The following table presents a summary of activity in the reserve for losses on repurchased loans for the periods indicated:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
	(In thousands)
Balance at beginning of period	$	8,118		$	9,781		$	7,974		$	9,700
Provision for loan repurchases	270			851			787			1,230
Utilization of reserve for loan repurchases	(360		)	(194		)	(733		)	(492		)
Balance at end of period	$	8,028		$	10,438		$	8,028		$	10,438

In addition to the reserve for losses on repurchased loans at June 30, 2017, the Company may receive repurchase demands in future periods that could be material to the Company's financial position or results of operations. The Company believes that all known or probable and estimable demands were adequately reserved for at June 30, 2017.