Mortgage Banking Income

3 Months Ended

Mar. 31, 2022

Mortgage Banking [Abstract]

Mortgage Banking Income

19. MORTGAGE BANKING INCOME

The components of gain on loan origination and sale activities and mortgage servicing fees for the three months ended March 31, 2022 and 2021 are as follows:

	For the Three Months Ended March 31,
	2022			2021
	(In thousands)
Gain on loan origination and sale activities, net
Gain on sale of mortgage loans and realized gain from derivative financial instruments, net	$	3,093		$	15,876
Net change in fair value of loans held for sale and portfolio loans accounted for at fair value		(1,559	)		(3,816	)
Capitalized residential mortgage loan servicing rights		377			2,797
Net change in fair value of derivative loan commitments and forward loan sale commitments		(647	)		(3,864	)
Gain on loan origination and sales activities, net	$	1,264		$	10,993
Mortgage servicing fees, net
Residential mortgage loan servicing fees	$	1,277		$	1,170
Amortization of residential mortgage loan servicing rights		(749	)		(812	)
Release (provision) to the valuation allowance of mortgage loan servicing rights		135			421
Sub-servicer expenses (1)		(315	)		—
Mortgage servicing fees, net	$	348		$	779
Total gain on loan origination and sales activities and mortgage servicing fees, net	$	1,612		$	11,772

(1) Sub-servicer expenses were first incurred during the third quarter of 2021, due to the conversion of the Company’s mortgage loan servicing portfolio. Previously, all expenses related to servicing mortgage loans serviced for others were included in non-interest expenses.