Revenue from Contracts with Customers

As of January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers - Topic 606 and all subsequent ASUs that modified 606. See Recently Adopted Accounting Standards section of Note 1, Basis of Presentation, for further discussion related to the transition and implementation of this ASU.

The following is a discussion of key revenues within the scope of the new revenue guidance:

Service charges on deposit accounts - Revenue from service charges on deposit accounts is earned through cash management, wire transfer, and other deposit-related services; as well as overdraft, non-sufficient funds, account management and other deposit-related fees. Revenue is recognized for these services either over time, corresponding with deposit accounts’ monthly cycle, or at a point in time for transactional related services and fees.

Card and merchant processing fees - Card and merchant processing fees consists of interchange fees from consumer credit and debit cards processed by card association networks, merchant services, and other card related services. Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors. Interchange fees are recognized as transactions occur. Merchant services income represents account management fees and transaction fees charged to merchants for the processing of card association transactions. Merchant services revenue is recognized as transactions occur, or as services are performed.

Investment banking and advisory fees - Investment banking and advisory fees primarily represent revenues earned by the Company for various corporate services including advisory, debt placement and underwriting. Revenues for these services are recorded at a point in time or upon completion of a contractually identified transaction. Underwriting costs are presented gross against underwriting revenues.

Money transfer income - Money transfer income represents income from the Parent’s wholly owned subsidiary, BBVA Compass Payments, Inc., which engages in money transfer services, including money transmission and foreign exchange services. Money transfer income is recognized as transactions occur.

Asset management, retail investment, and commissions fees - Asset management, retail investment, and commissions fees consists of fees generated from money management transactions and treasury management services, along with mutual fund and annuity sales fee income. Revenue from trade execution and brokerage services is earned through commissions from trade execution on behalf of clients. Revenue from these transactions is recognized on the trade date. Any ongoing service fees are recognized on a monthly basis as services are performed. Trust and asset management services include asset custody and investment management services provided to individual and institutional customers. Revenue is recognized monthly based on a minimum annual fee, and the market value of assets in custody. Additional fees are recognized for transactional activity. Insurance revenue is earned through commissions on insurance sales and earned at a point in time. These revenues are recorded in asset management fees and retail investment sales within noninterest income.

The following tables depict the disaggregation of revenue according to revenue type and segment.



	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking		Treasury and Corporate Support and Other		Total
	(In Thousands)
Three Months Ended March 31, 2018
Service charges on deposit accounts	$	11,206	$	43,340	$	1,615	$	—	$	56,161
Card and merchant processing fees	6,704		29,953		—		3,021		39,678
Retail investment sales	30,108		—		—		—		30,108
Investment banking and advisory fees	—		—		23,896		—		23,896
Money transfer income	—		—		—		20,688		20,688
Asset management fees	10,770		—		—		—		10,770
	58,788		73,293		25,511		23,709		181,301
Other revenues (1)	2,448		35,459		16,281		22,336		76,524
Total noninterest income	$	61,236	$	108,752	$	41,792	$	46,045	$	257,825


(1)	Other revenues primarily relate to revenues not derived from contracts with customers.



	Commercial Banking and Wealth		Retail Banking		Corporate and Investment Banking		Treasury and Corporate Support and Other		Total
	(In Thousands)
Three Months Ended March 31, 2017
Service charges on deposit accounts	$	12,235	$	41,321	$	1,612	$	—	$	55,168
Card and merchant processing fees	126		27,924		—		1,942		29,992
Retail investment sales	27,471		—		—		—		27,471
Investment banking and advisory fees	—		—		28,301		—		28,301
Money transfer income	—		—		—		25,197		25,197
Asset management fees	9,771		—		—		—		9,771
	49,603		69,245		29,913		27,139		175,900
Other revenues (1)	282		37,324		16,771		14,410		68,787
Total noninterest income	$	49,885	$	106,569	$	46,684	$	41,549	$	244,687


(1)	Other revenues primarily relate to revenues not derived from contracts with customers.