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:



	Year Ended December 31,
($ in thousands)	2018			2017			2016
Balance at beginning of year	$	6,306		$	7,974		$	9,700
Initial provision for loan repurchases	126			1,622			3,942
Subsequent change in the reserve	(2,488		)	(1,812		)	(3,352		)
Utilization of reserve for loan repurchases	(1,438		)	(2,238		)	(2,316		)
Other adjustments	—			760			—
Balance at end of year	$	2,506		$	6,306		$	7,974

During the year ended December 31, 2018, reserve for loss on repurchased loans decreased by $3.8 million. During the year ended December 31, 2018, approximately $1.5 million of the decrease was due to portfolio run-off and repurchase settlement activities.

The Company believes that its obligations for mortgage loan repurchases or loss reimbursements were adequately reserved for

at December 31, 2018.