MORTGAGE BANKING ACTIVITIES

The Bank originates conforming single family residential mortgage loans and sells these loans in the secondary market. The amount of net revenue on mortgage banking activities is a function of mortgage loans originated for sale and the fair values of these loans and related derivatives. Net revenue on mortgage banking activities includes mark to market pricing adjustments on loan commitments and forward sales contracts, and initial capitalized value of MSRs.

During the year ended December 31, 2015, the Bank originated $4.39 billion and sold $4.30 billion of conforming single family residential mortgage loans in the secondary market. The net gain and margin were $128.7 million and 2.93 percent, respectively, and loan origination fees were $15.9 million for the year ended December 31, 2015. Included in the net gain is the initial capitalized value of our MSRs, which totaled $44.3 million on loans sold to Fannie Mae, Freddie Mac and Ginnie Mae for the year ended December 31, 2015.

During the year ended December 31, 2014, the Bank originated $2.82 billion and sold $2.75 billion of conforming single family residential mortgage loans in the secondary market. The net gain and margin were $84.1 million and 2.98 percent, respectively, and loan origination fees were $11.3 million for the year ended December 31, 2014. Included in the net gain is the initial capitalized value of our MSRs, which totaled $25.2 million on loans sold to Fannie Mae and Freddie Mac for the year ended December 31, 2014.

During the year ended December 31, 2013, the Bank originated $1.94 billion and sold $1.86 billion of conforming single family residential mortgage loans in the secondary market. The net gain and margin were $58.0 million and 2.99 percent, respectively, and loan origination fees were $9.9 million for the year ended December 31, 2013. Included in the net gain is the initial capitalized value of our MSRs, which totaled $10.9 million on loans sold to Fannie Mae and Freddie Mac for the year ended December 31, 2013.

Mortgage Loan Repurchase Obligations

In addition to net revenue on mortgage banking activities, the Company records provisions to the representation and warranty reserve representing our initial estimate of losses on probable mortgage repurchases or loss reimbursements. Total provision for loan repurchases totaled $4.4 million, $4.2 million and $2.4 million for the years ended December 31, 2015, 2014, and 2013, respectively. Of these total provision for loan repurchases, the Company provided initial provision for loan repurchases of $2.0 million and $1.4 million against net revenue on mortgage banking activities during the years ended December 31, 2015 and 2014, respectively.

The following table presents a summary of activity in the reserve for loss on repurchased loans for the periods indicated:



	Year Ended December 31,
	2015			2014			2013
	(In thousands)
Balance at beginning of year	$	8,303		$	5,427		$	3,485
Acquired in business combinations	—			—			314
Provision for loan repurchases	4,352			4,243			2,383
Change in estimates	846			—			—
Utilization of reserve for loan repurchases	(3,801		)	(1,367		)	(755		)
Balance at end of year	$	9,700		$	8,303		$	5,427

In addition to the reserve for losses on repurchased loans at December 31, 2015, the Company may receive repurchase demands in future periods that could be material to the Company's financial position or results of operations. The Company believes that all demands received were adequately reserved at December 31, 2015.