Note 18 - Non-interest Income

Non-interest income includes revenue from various types of transactions and services provided to customers. The following table reflects non-interest income disaggregated by revenue type, line of business, and the amount of revenue that is in scope and out of scope of Topic 606 for the year ended December 31, 2018.



Non-interest Income by Line of Business
	For the Year Ended December 31, 2018
(in thousands)	Community Banking		Corporate Banking		Retail Banking		Financial Management Services		Other		Total
Revenues in scope of Topic 606
Service charges on deposit accounts	$	22,633	$	1,932	$	54,123	$	—	$	2,152	$	80,840
Fiduciary and asset management fees	—		—		—		54,685		—		54,685
Card fees	834		—		41,669		—		—		42,503
Brokerage revenue	—		—		—		36,567		—		36,567
Insurance revenue	—		—		—		5,410		—		5,410
Other fees	—		—		1,943		—		1,084		3,027
	$	23,467	$	1,932	$	97,735	$	96,662	$	3,236	$	223,032

Revenues out of scope of Topic 606⁽¹⁾	9,098		7,598		6,656		22,786		10,923		57,061
Total non-interest income	$	32,565	$	9,530	$	104,391	$	119,448	$	14,159	$	280,093


⁽¹⁾	Out of scope non-interest income is presented for the purpose of reconciling non-interest income amounts within the scope of Topic 606 to non-interest income amounts presented on Synovus' consolidated statements of income.

Following is a discussion of key revenues within the scope of Topic 606:

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 transaction-related services and fees. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers' accounts.

Fiduciary and Asset Management Fees: Fiduciary and asset management fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. Synovus' performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month-end through a direct charge to customers' accounts. Synovus does not earn performance-based incentives.

Card Fees: Card fees consist primarily of interchange fees from consumer credit and debit cards processed by card association networks, as well as merchant discounts, 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 and merchant discounts are recognized concurrently with the delivery of service on a daily basis as transactions occur. Payment is typically received immediately or in the following month. Card fees are reported net of certain associated expense items including loyalty program expenses and network expenses.

Brokerage Revenue: Brokerage revenue consists primarily of commissions. Additionally, brokerage revenue includes advisory fees earned from the management of customer assets. Advisory fees for brokerage services are recognized and collected monthly and are based upon the month-end market value of the assets under management at a rate predetermined in the contract. Transactional revenues are based on the size and number of transactions executed at the client's direction and are generally recognized on the trade date with payment received on the settlement date.

Insurance Revenue: Insurance revenue primarily consists of commissions received on annuity and life product sales. The commissions are recognized as revenue when the customer executes an insurance policy with the insurance carrier. In some cases, Synovus receives payment of trailing commissions each year when the customer pays its annual premium. For the years ended December 31, 2018 and 2017, Synovus recognized an immaterial amount of insurance trailing commissions.

Other Fees: Other fees primarily consist of revenues generated from safe deposit box rental fees and lockbox services. Fees are recognized over time, on a monthly basis, as Synovus' performance obligation for services is satisfied. Payment is received upfront for safe deposit box rentals and in the following month for lockbox services.