Mortgage banking activities

9 Months Ended

Sep. 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 September 30,			Nine months ended September 30,
(In thousands)			2014		2013		2014		2013
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	11,091	$	11,543	$	32,397	$	34,099
	Mortgage servicing rights fair value adjustments		(2,588)		3,879		(18,424)		(6,862)
Total mortgage servicing fees, net of fair value adjustments			8,503		15,422		13,973		27,237
Net gain on sale of loans, including valuation on loans held-for-sale			7,466		3,559		22,831		16,968
Trading account (loss) profit:
	Unrealized gains (losses) on outstanding derivative positions		13		(865)		(725)		(265)
	Realized (losses) gains on closed derivative positions		(1,580)		776		(14,211)		13,330
Total trading account (loss) profit			(1,567)		(89)		(14,936)		13,065
Total mortgage banking activities		$	14,402	$	18,892	$	21,868	$	57,270