Mortgage banking activities

9 Months Ended

Sep. 30, 2019

Disclosure Text Block

Mortgage Banking Activities

Note 11 – 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)			2019		2018		2019		2018
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	11,797	$	12,324	$	35,400	$	37,205
	Mortgage servicing rights fair value adjustments		(4,842)		(4,194)		(25,853)		(13,123)
Total mortgage servicing fees, net of fair value adjustments			6,955		8,130		9,547		24,082
Net gain on sale of loans, including valuation on loans held-for-sale			5,421		3,014		14,653		6,531
Trading account (loss) profit:
	Unrealized (losses) gains on outstanding derivative positions		227		45		-		(131)
	Realized (losses) gains on closed derivative positions		(2,111)		80		(5,555)		2,926
Total trading account (loss) profit			(1,884)		125		(5,555)		2,795
Total mortgage banking activities		$	10,492	$	11,269	$	18,645	$	33,408