Note 10 – Residential mortgage banking activities, net

Residential mortgage banking activities, net, reflects variable revenue and expense within our residential mortgage banking business directly related to loan origination and sale activity. This primarily consists of the realized gains on sales of residential loans held for sale and loan origination fee income, offset by direct costs, such as correspondent fee expenses and other direct expenses relating to these loans, which vary based on loan origination volumes. Residential mortgage banking activities, net, also consists of unrealized gains and losses associated with the changes in fair value of the loans held for sale, the fair value of retained MSR additions, and the realized and unrealized gains and losses from derivative instruments.

The historical results of our Residential mortgage banking segment has been reclassified in the consolidated statements of income to conform to our current period’s presentation of residential mortgage banking activities, net. The following table presents the components of residential mortgage banking activities, net, recorded in the Company’s consolidated statements of operations.


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In Thousands)	2017		2016		2017		2016
Realized and unrealized gains and losses on residential mortgage loans held for sale, at fair value	$	20,024	$	—	$	33,418	$	—
Creation of new mortgage servicing rights, net of payoffs		3,840				7,645
Loan origination fee income on residential mortgage loans		2,281				4,144
Correspondent fees and other direct loan expenses, including provision for loan indemnification		(14,895)				(21,871)
Unrealized losses on IRLCs and other derivatives		(265)		—		(1,841)		—
Total residential mortgage banking activities, net	$	10,985	$	—	$	21,495	$	—