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Servicing Assets | 6 Months Ended
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Jun. 30, 2021
Transfers And Servicing [Abstract] |
Servicing Assets | Note 4 — Servicing Assets The changes in servicing assets for the three months ended June 30, 2021 and 2020 were as follows:
|  | Three Months Ended June 30, |
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Servicing assets: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 6,150 |  |  | $ | 6,727 |
Addition related to sale of SBA loans |  |  | 707 |  |  |  | — |
Amortization |  |  | (658 | ) |  |  | (540 | )
Balance at end of period |  | $ | 6,199 |  |  | $ | 6,187 |
The changes in servicing assets for the six months ended June 30, 2021 and 2020 were as follows:
|  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |
|  | (in thousands) |
Servicing assets: |  |  |  |  |  |  |  |
Balance at beginning of period |  | $ | 6,212 |  |  | $ | 6,956 |
Addition related to sale of SBA loans |  |  | 1,157 |  |  |  | 354 |
Amortization |  |  | (1,170 | ) |  |  | (1,123 | )
Balance at end of period |  | $ | 6,199 |  |  | $ | 6,187 |
At June 30, 2021 and December 31, 2020, we serviced loans sold to unaffiliated parties in the amounts of $432.8 million and $429.4 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 and $1.2 million for the three months ended June 30, 2021 and 2020, respectively. The Company recorded servicing fee income of $2.3 million and $2.3 million for each of the six months ended June 30, 2021 and 2020. Servicing fee income, net of the amortization of servicing assets, is included in other operating income in the consolidated statements of income. Amortization expense was $658,000 and $540,000 for the three months ended June 30, 2021 and 2020, respectively, and $1.2 million and $1.1 million for the six months ended June 30, 2021 and 2020, respectively. The fair value of servicing rights was $7.9 million at June 30, 2021. Fair value at June 30, 2021 was determined using discount rates ranging from 6.9 percent to 8.4 percent and prepayment speeds ranging from 11.2 percent to 18.1 percent, depending on the stratification of the specific right. The fair value of servicing rights was $6.9 million at December 31, 2020. Fair value at December 31, 2020 was determined using discount rates ranging from 9.3 percent to 12.2 percent and prepayment speeds ranging from 11.8 percent to 19.1 percent, depending on the stratification of the specific right.

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- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 30 -Section 50 -Paragraph 1A -Subparagraph (c)(3) -URI 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