Mortgage banking activities

6 Months Ended

Jun. 30, 2020

Disclosure Text Block

Mortgage Banking Activities

Note 10 – 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)			2020		2019		2020		2019
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	9,058	$	11,916	$	20,026	$	23,603
	Mortgage servicing rights fair value adjustments		(7,640)		(17,186)		(12,869)		(21,011)
Total mortgage servicing fees, net of fair value adjustments			1,418		(5,270)		7,157		2,592
Net gain on sale of loans, including valuation on loans held-for-sale			5,487		5,215		9,473		9,232
Trading account loss:
	Unrealized gains (losses) on outstanding derivative positions		1,695		(227)		-		(227)
	Realized losses on closed derivative positions		(4,823)		(1,491)		(6,433)		(3,444)
Total trading account loss			(3,128)		(1,718)		(6,433)		(3,671)
Total mortgage banking activities		$	3,777	$	(1,773)	$	10,197	$	8,153