Mortgage banking activities

9 Months Ended

Sep. 30, 2023

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, fair value 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)

2023

2022

2023

2022

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$

8,025

$

9,126

$

25,083

$

27,635

Mortgage servicing rights fair value adjustments

(2,793)

(499)

(10,385)

2,846

Total mortgage servicing fees, net of fair value adjustments

5,232

8,627

14,698

30,481

Net (loss) gain on sale of loans, including valuation on loans held-for-sale

(335)

1,124

(133)

(374)

Trading account profit (loss):

Unrealized gains on outstanding derivative positions

45

-

160

-

Realized gains (losses) on closed derivative positions

494

(240)

661

6,325

Total trading account profit (loss)

539

(240)

821

6,325

Losses on repurchased loans, including interest advances

(43)

(63)

(277)

(544)

Total mortgage banking activities

$

5,393

$

9,448

$

15,109

$

35,888

[1] 

Effective on January 1, 2023, loans held-for-sale are stated at fair value. Prior to such date, loans held-for-sale were stated at lower-of-cost-or-

market.