Mortgage banking activities

9 Months Ended

Sep. 30, 2022

Mortgage Banking [Abstract]

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, 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 September 30,			Nine months ended September 30,
(In thousands)			2022		2021		2022		2021
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	9,126	$	9,376	$	27,635	$	28,613
	Mortgage servicing rights fair value adjustments		(499)		(5,979)		2,846		(11,706)
Total mortgage servicing fees, net of fair value adjustments			8,627		3,397		30,481		16,907
Net gain (loss) on sale of loans, including valuation on loans held-for-sale			1,124		6,084		(374)		16,256
Trading account (loss) profit:
	Realized (losses) gains on closed derivative positions		(240)		(1,004)		6,325		632
Total trading account (loss) profit			(240)		(1,004)		6,325		632
Losses on repurchased loans, including interest advances			(63)		(170)		(544)		(697)
Total mortgage banking activities		$	9,448	$	8,307	$	35,888	$	33,098