Mega Bank Annual Report 2017

54 Mega Bank -54- 2017 US$ Receivables Bills discounted and loans Non-accrual loans transferred from overdue receivables Remittance purchased Total Balance, January 1 $ 48,190 $ 900,372 $ 97 $ 5 $ 948,664 Provision (Reversal) 10,599 136,886 ( 52 ) ( 4 ) 147,429 Write-off-net ( 2,483 ) ( 120,913 ) ( 803 ) - ( 124,199 ) Recovery of written-off credits 2,824 46,027 47 - 48,898 Effects of exchange rate changes and others ( 2,980 ) ( 5,967 ) 762 - ( 8,185 ) Balance, December 31 $ 56,150 $ 956,405 $ 51 $ 1 $ 1,012,607 2016 NT$ Receivables Bills discounted and loans Non-accrual loans transferred from overdue receivables Remittance purchased Total Balance, January 1 $ 1,973,545 $ 23,466,229 $ 2,879 $ 113 $ 25,442,766 (Reversal) Provision ( 512,317 ) 3,680,095 - 42 3,167,820 Write-off-net ( 103,837 ) ( 1,749,761 ) - - ( 1,853,598 ) Recovery of written-off credits 85,156 1,263,580 - - 1,348,736 Effects of exchange rate changes and others ( 13,809 ) 34,089 - - 20,280 Balance, December 31 $ 1,428,738 $ 26,694,232 $ 2,879 $ 155 $ 28,126,004 (6) Available-for-sale financial assets, net December 31, 2017 December 31, 2016 NT$ US$ NT$ Stocks $ 6,389,301 $ 215,505 $ 7,662,393 Commercial papers 39,171,853 1,321,231 24,631,119 Bonds 219,529,048 7,404,515 169,615,230 Beneficiary securities - - 555,833 Certificates of deposit 12,881,281 434,474 3,658,813 Treasury securities - - 997,756 Subtotal 277,971,483 9,375,725 207,121,144 Adjustments for change in value of investment 297,226 10,025 ( 508,694 ) Accumulated impairment loss ( 178,709 ) ( 6,028 ) ( 891,513 ) Total $ 278,090,000 $ 9,379,722 $ 205,720,937 A. As of December 31, 2017 and 2016, the aforementioned available-for-sale financial assets amounted to NT$7,917,224 thousand and NT$10,669,737 thousand, respectively, and were pledged to other parties as collateral for business reserves and guarantees. B. As of December 31, 2017 and 2016, available-for-sale financial assets were sold under repurchase agreements with fair values of NT$828,726 thousand and NT$418,751 thousand, respectively. C. The Bank and subsidiaries recognized gain of NT$2,093,917 thousand and NT$922,297 thousand in other comprehensive income for fair value change for the years ended December 31, 2017 and 2016, respectively. D. The Bank and subsidiaries recognized impairment loss for the long-term operating losses of the investee for the years ended December 31, 2017 and 2016. Details are provided in Note 6(29). E. The Bank and subsidiaries recognized interest income of NT$4,041,592 thousand and NT$3,628,125 thousand on holding debt instruments for the years ended December 31, 2017 and 2016, respectively. F. For the years ended December 31, 2017 and 2016, amount realised and transferred from other equity in the statements of change in equity to current profit was NT$1,294,331 thousand and NT$1,295,542 thousand, respectively. G. In consideration of increasing capital returns, the Bank and subsidiaries have invested in structured entities issued and managed by independent third parties-Residential Mortgage Backed Security, which are accounted for by the Bank and subsidiaries under available- for-sale financial assets-beneficiary securities. The above-mentioned asset securitization products have maturity dates within April, 2035 to December, 2035. As of December 31, 2017 and 2016, the book value and the maximum credit risk exposure of structured entities is NT$0 thousand and NT$60,173 thousand, respectively. The Bank and subsidiaries recognized interest income of NT$54,421 thousand and NT$38,406 thousand on structured entities for the years ended December 31, 2017 and 2016, respectively.