Note 10 – Residential mortgage banking activities and variable expenses on residential mortgage banking activities

Residential mortgage banking activities, reflects revenue 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. Residential mortgage banking activities 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.

Variable expenses include correspondent fee expenses and other direct expenses relating to these loans, which vary based on loan origination volumes.

The following table presents the components of residential mortgage banking activities and variable expenses on residential mortgage banking activities recorded in the Company’s unaudited interim consolidated statements of operations.


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2019		2018		2019		2018
Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value	$	17,229	$	10,515	$	41,314	$	28,590
Creation of new mortgage servicing rights, net of payoffs		6,562		3,837		12,621		11,910
Loan origination fee income on residential mortgage loans		3,320		2,474		7,688		7,312
Unrealized gains (loss) on IRLCs and other derivatives		1,902		185		2,998		478
Residential mortgage banking activities	$	29,013	$	17,011	$	64,621	$	48,290

Variable expenses on residential mortgage banking activities	$	(17,318)	$	(8,337)	$	(39,995)	$	(18,120)