Mortgage banking activities

6 Months Ended

Jun. 30, 2018

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)			2018		2017		2018		2017
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	12,425	$	13,021	$	24,881	$	26,473
	Mortgage servicing rights fair value adjustments		(4,622)		(8,046)		(8,929)		(14,000)
Total mortgage servicing fees, net of fair value adjustments			7,803		4,975		15,952		12,473
Net gain on sale of loans, including valuation on loans held-for-sale			2,460		7,250		3,517		12,631
Trading account (loss) profit:
	Unrealized gains (losses) on outstanding derivative positions		45		83		(176)		43
	Realized (losses) gains on closed derivative positions		(237)		(1,567)		2,846		(3,037)
Total trading account (loss) profit			(192)		(1,484)		2,670		(2,994)
Total mortgage banking activities		$	10,071	$	10,741	$	22,139	$	22,110