|3 Months Ended|
Mar. 31, 2018
NOTE 3. LOANS, NET
Loans consisted of the following at March 31, 2018 and December 31, 2017:
(1) Balance includes $70.1 million and $67.1 million of the unguaranteed portion of SBA loans as of March 31, 2018 and December 31, 2017, respectively.
(2) Balance includes $(3.5) million and $(3.4) million of deferred fees, cost, premium and discount as of March 31, 2018 and December 31, 2017, respectively.
At March 31, 2018 and December 31, 2017, the Company had pledged loans as collateral for FHLB advances of $359.5 million and $358.2 million, respectively. There were no recorded investments of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of March 31, 2018 and December 31, 2017.
The Company originates and sells loans secured by the SBA. The Company retains the unguaranteed portion of the loan and servicing on the loans sold and receives a fee based upon the principal balance outstanding. During the three months ended March 31, 2018 and 2017, the Company sold approximately $17.1 million and $13.5 million, respectively, in loans to third parties. The loan sales resulted in realized gains of $1.5 million and $1.0 million for the three months ended March 31, 2018 and 2017, respectively.
In the ordinary course of business, the Company makes loans to executive officers and directors. Loans to these related parties, including companies in which they are principal owners, are as follows:
There were no unfunded commitments to related parties at March 31, 2018 or December 31, 2017.
The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef