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 loss on repurchased loans for the periods indicated:



	Three Months Ended September 30,						Nine Months Ended September 30,
($ in thousands)	2018			2017			2018			2017
Balance at beginning of period	$	3,149		$	8,028		$	6,306		$	7,974
Initial provision for loan repurchases	18			98			73			1,613
Subsequent change in the provision	(360		)	(749		)	(2,366		)	(1,477		)
Utilization of reserve for loan repurchases	(232		)	(1,204		)	(1,438		)	(1,937		)
Balance at end of period	$	2,575		$	6,173		$	2,575		$	6,173

During the three and nine months ended September 30, 2018, reserve for loss on repurchased loans decreased by $574 thousand and $3.7 million, respectively. The decreases were primarily due to methodology and data enhancements. During the nine months ended September 30, 2018, approximately $1.5 million of the decrease was due to portfolio run-off and repurchase settlement activities, and approximately $2.2 million of the decrease was due to methodology and data enhancements. The methodology and data enhancements were primarily 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 September 30, 2018.