Mortgage banking activities

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements [Abstract]

Mortgage Banking Activities [Text BLock]

Note 12– Mortgage banking activities

Income from mortgage banking activities includes mortgage servicing fees earned in connection with administering residential mortgage loans and valuation adjustments on mortgage servicing rights. It also includes gain on sales and securitizations of residential mortgage loans and trading gains and losses on derivative contracts used to hedge the Corporation's securitization activities. In addition, lower-of-cost-or-market valuation adjustments to residential mortgage loans held for sale, if any, are recorded as part of the mortgage banking activities.

The following table presents the components of mortgage banking activities:

			Quarters ended June 30,			Six months ended June 30,
(In thousands)			2014		2013		2014		2013
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	10,558	$	11,313	$	21,306	$	22,556
	Mortgage servicing rights fair value adjustments		(7,740)		(5,126)		(15,836)		(10,741)
Total mortgage servicing fees, net of fair value adjustments			2,818		6,187		5,470		11,815
Net gain (loss) on sale of loans, including valuation on loans held-for-sale			8,189		(351)		15,365		13,409
Trading account (loss) profit:
	Unrealized gains (losses) on outstanding derivative positions		22		622		(738)		600
	Realized (losses) gains on closed derivative positions		(7,241)		11,623		(12,631)		12,554
Total trading account (loss) profit			(7,219)		12,245		(13,369)		13,154
Total mortgage banking activities		$	3,788	$	18,081	$	7,466	$	38,378