Mortgage banking activities

3 Months Ended

Mar. 31, 2019

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 March 31,
(In thousands)			2019		2018
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	11,687	$	12,456
	Mortgage servicing rights fair value adjustments		(3,825)		(4,307)
Total mortgage servicing fees, net of fair value adjustments			7,862		8,149
Net gain on sale of loans, including valuation on loans held-for-sale			4,017		1,057
Trading account (loss) profit:
	Unrealized losses on outstanding derivative positions		-		(221)
	Realized (losses) gains on closed derivative positions		(1,953)		3,083
Total trading account (loss) profit			(1,953)		2,862
Total mortgage banking activities		$	9,926	$	12,068