Mortgage banking activities

6 Months Ended

Jun. 30, 2022

Mortgage Banking [Abstract]

Mortgage Banking Activities

Note 9 – 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, losses on repurchased loans, including interest advances, 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)			2022		2021		2022		2021
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	9,186	$	9,522	$	18,509	$	19,237
	Mortgage servicing rights fair value adjustments		2,257		(6,239)		3,345		(5,727)
Total mortgage servicing fees, net of fair value adjustments			11,443		3,283		21,854		13,510
Net gain (loss) on sale of loans, including valuation on loans held-for-sale			36		5,197		(1,498)		10,172
Trading account profit (loss):
	Unrealized losses on outstanding derivative positions		(2)		-		-		-
	Realized gains (losses) on closed derivative positions		2,430		(866)		6,565		1,636
Total trading account profit (loss)			2,428		(866)		6,565		1,636
Losses on repurchased loans, including interest advances			(332)		(166)		(481)		(527)
Total mortgage banking activities		$	13,575	$	7,448	$	26,440	$	24,791