Revenue from Contracts with Customers

On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers — Topic 606 and all subsequent ASUs that modified ASC 606, Revenue from Contracts with Customers. The Company adopted ASC 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. The new standard did not materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s previously existing accounting for contracts within the scope of the new standard. There was no cumulative effect adjustment to retained earnings as a result of adopting this new standard.

The following tables present revenue from contracts with customers within the scope of ASC 606 and other noninterest income, segregated by operating segments for the years ended December 31, 2018, 2017 and 2016:




($ in thousands)	Year Ended December 31, 2018
($ in thousands)	Consumer and Business Banking		Commercial Banking		Other		Total
Noninterest income:
Revenue from contracts with customers ⁽¹⁾:
Branch fees:
Deposit service charges and related fee income	$	22,474	$	12,326	$	423	$	35,223
Card income	3,880		756		—		4,636
Wealth management fees	13,357		428		—		13,785
Total revenue from contracts with customers	$	39,711	$	13,510	$	423	$	53,644
Other sources of noninterest income ⁽²⁾	45,896		96,777		14,592		157,265
Total noninterest income	$	85,607	$	110,287	$	15,015	$	210,909




($ in thousands)	Year Ended December 31, 2017
($ in thousands)	Consumer and Business Banking		Commercial Banking		Other		Total
Noninterest income:
Revenue from contracts with customers ⁽¹⁾:
Branch fees:
Deposit service charges and related fee income	$	24,109	$	11,476	$	464	$	36,049
Card income	3,938		938		—		4,876
Wealth management fees	12,218		1,756		—		13,974
Total revenue from contracts with customers	$	40,265	$	14,170	$	464	$	54,899
Other sources of noninterest income ⁽²⁾	14,186		95,919		92,744		202,849
Total noninterest income	$	54,451	$	110,089	$	93,208	$	257,748




($ in thousands)	Year Ended December 31, 2016
($ in thousands)	Consumer and Business Banking		Commercial Banking		Other		Total
Noninterest income:
Revenue from contracts with customers ⁽¹⁾:
Branch fees:
Deposit service charges and related fee income	$	23,965	$	10,200	$	345	$	34,510
Card income	4,352		763		29		5,144
Wealth management fees	9,425		3,171		4		12,600
Total revenue from contracts with customers	$	37,742	$	14,134	$	378	$	52,254
Other sources of noninterest income ⁽²⁾	13,509		81,422		35,093		130,024
Total noninterest income	$	51,251	$	95,556	$	35,471	$	182,278


(1)	There were no adjustments to the Company’s financial statements recorded as a result of the adoption of ASC 606. For comparability, the Company has adjusted prior period amounts to conform to the current period’s presentation.


(2)	Primarily represents revenue from contracts with customers that are out of the scope of ASC 606.

Generally, the Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are typically satisfied as services are rendered. The Company generally records contract liabilities, or deferred revenue, when payments from customers are received or due in advance of providing services. The Company records contract assets when services are provided to customers before payment is received or before payment is due. Since the Company receives payments for its services during the period or at the time services are provided, there were no contract asset or receivable balances as of both December 31, 2018 and 2017.

The major revenue streams by fee type that are within the scope of ASC 606 presented in the above tables are described in additional detail below:

Branch Fees — Deposit Service Charges and Related Fee Income

The Company offers a range of deposit products to individuals and businesses, which includes savings, money market, checking and time deposit accounts. The deposit account services include ongoing account maintenance, as well as certain optional services such as automated teller machine usage, wire transfer services or check orders. In addition, treasury management and business account analysis services are offered to commercial deposit customers. The Company may charge a fixed monthly account maintenance fee if certain average balances are not maintained, therefore making the fee variable. In addition, each time a deposit customer selects an optional service, the Company may earn transactional fees, generally recognized by the Company at the point in time when the transaction occurs. For business analysis accounts, commercial deposit customers receive an earnings credit based on their account balance, which can be used to offset the cost of banking and treasury management services. Business analysis accounts that are assessed fees in excess of earnings credits received are typically charged at the end of each month, after all transactions are known and the credits are calculated.

Branch Fees — Card Income

Card income is comprised of merchant referral fees and interchange income. For merchant referral fees, the Company provides marketing and referral services to acquiring banks for merchant card processing services and earns variable referral fees based on transaction activities. The Company satisfies its performance obligation over time as the Company identifies, solicits, and refers business customers who are provided such services. The Company receives monthly fees net of consideration it pays to the acquiring bank performing the merchant card processing services. The Company recognizes revenue on a monthly basis when the uncertainty associated with the variable referral fees is resolved after the Company receives monthly statements from the acquiring bank. For interchange income, the Company, as a card issuer, has a stand ready performance obligation to authorize, clear, and settle card transactions. The Company earns, or pays, interchange fees, which are percentage-based on each transaction, and based on rates published by the corresponding payment network for transactions processed using their network. The Company measures its progress toward the satisfaction of its performance obligation over time, as services are rendered, and the Company provides continuous access to this service and settles transactions as its customer, the payment network, requires. Interchange income is presented net of direct costs paid to the customer and entities in their distribution chain, which are transaction-based expenses such as rewards program expenses and certain network costs. Revenue is recognized when the net profit is determined by the payment networks at the end of each day.

Wealth Management Fees

The Company employs financial consultants to provide investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter-end based on actual transaction details received from the broker-dealer the Company engages.

Practical Expedients and Exemptions

The Company applies the practical expedient in ASC 606-10-50-14 and does not disclose the value of unsatisfied performance obligations as the Company’s contracts with customers generally have a term that is less than one year, are open-ended with a cancellation period that is less than one year, or allow the Company to recognize revenue in the amount to which the Company has the right to invoice.

In addition, given the short-term nature of the contracts, the Company also applies the practical expedient in ASC 606-10-32-18 and does not adjust the consideration from customers for the effects of a significant financing component, if at contract inception the period between when the entity transfers the goods or services and when the customer pays for that good or service is one year or less.