v3.19.1
Servicing Assets
12 Months Ended
Dec. 31, 2018
Transfers and Servicing [Abstract]  
Servicing Assets
Servicing Assets
At December 31, 2018 and 2017, total servicing assets were $7.7 million and $9.0 million, respectively. The Company sold loans of $97.7 million, $127.3 million and $138.9 million, respectively, with the servicing rights retained and recognized a net gain on sale of $5.4 million, $8.9 million and $8.6 million, respectively, during the years ended December 31, 2018, 2017 and 2016. Loan servicing income was $2.2 million, $2.4 million and $2.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.
The following table presents the composition of servicing assets with key assumptions used to estimate the fair value:
 
 
December 31,
 
 
2018
 
2017
($ in thousands)
 
Residential Property
 
SBA Property
 
SBA Commercial Term
 
Residential Property
 
SBA Property
 
SBA Commercial Term
Carrying amount
 
$
244

 
$
6,349

 
$
1,073

 
$
308

 
$
7,369

 
$
1,296

Fair value
 
$
298

 
$
6,937

 
$
1,206

 
$
346

 
$
7,991

 
$
1,400

Discount rates
 
11.25
%
 
13.25
%
 
12.75
%
 
10.50
%
 
13.25
%
 
12.75
%
Prepayment speeds
 
25.00
%
 
14.12
%
 
13.55
%
 
25.60
%
 
10.50
%
 
10.60
%
Weighted average remaining life
 
25.2 years

 
21.1 years

 
7.4 years

 
25.8 years

 
20.3 years

 
6.7 years

Underlying loans being serviced
 
$
45,728

 
$
367,856

 
$
93,073

 
$
53,253

 
$
375,233

 
$
99,672

 
 
 
 
 
 
 
 
 
 
 
 
 

The following table presents activity in servicing assets for the periods indicated:
($ in thousands)
 
Residential Property
 
SBA Property
 
SBA Commercial Term
 
Total
Balance at January 1, 2016
 
$
431

 
$
5,890

 
$
1,084

 
$
7,405

Additions
 
110

 
2,278

 
564

 
2,952

Amortization
 
(133
)
 
(1,476
)
 
(446
)
 
(2,055
)
Balance at December 31, 2016
 
408

 
6,692

 
1,202

 
8,302

Additions
 

 
2,353

 
551

 
2,904

Amortization
 
(100
)
 
(1,676
)
 
(457
)
 
(2,233
)
Balance at December 31, 2017
 
308

 
7,369

 
1,296

 
8,973

Additions
 
22

 
1,166

 
270

 
1,458

Amortization
 
(86
)
 
(2,186
)
 
(493
)
 
(2,765
)
Balance at December 31, 2018
 
$
244

 
$
6,349

 
$
1,073

 
$
7,666