RESERVE FOR LOSS ON REPURCHASED LOANS

The Company records a representation and warranty reserve representing its estimate of losses expected on mortgage loan repurchases or loss reimbursements attributable to underwriting or documentation defects on previously sold loans. The reserve for loss on repurchased loans is initially recorded at fair value against net revenue on mortgage banking activities at the time of sale, and any subsequent change in the reserve is recorded on the Consolidated Statements of Operations as an increase or decrease to the provision for loan repurchases (noninterest expense). The following table presents a summary of activity in the reserve for losses on repurchased loans for the periods indicated:



	Three Months Ended March 31,
($ in thousands)	2018			2017
Balance at beginning of period	$	6,306		$	7,974
Initial provision for loan repurchases	2			842
Subsequent change in the provision	(1,788		)	(325		)
Utilization of reserve for loan repurchases	(1,094		)	(373		)
Balance at end of period	$	3,426		$	8,118

During the three months ended March 31, 2018, reserve for loss on repurchased loans decreased by $2.9 million. Approximately $1.5 million of the decrease was due to portfolio run-off and repurchase settlement activities, and approximately $1.4 million of the decrease was due to methodology and data enhancements. The methodology and data enhancements were a result of additional insights gained through the due diligence process pertaining to the MSR sale during the three months ended March 31, 2018 and utilization of the Company's actual run-off and historical loss data as opposed to industry data.

The Company believes that its obligations for mortgage loan repurchases or loss reimbursements were adequately reserved for at March 31, 2018.