Revenue from contracts with Customers Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue from Contracts with Customers

The following tables summarize revenues recognized in accordance with ASC Topic 606, Revenue from Contracts with Customers, along with other sources of non-interest income that subject to other GAAP topics, by reportable segment:

	Year ended December 31, 2021
(In thousands)	Commercial Banking		HSA Bank		Retail Banking		Corporate and Reconciling		Consolidated Total
Non-interest Income:
Deposit service fees	$	16,946	$	94,844	$	50,548	$	372	$	162,710
Wealth and investment services	39,623		—		—		(37)		39,586
Other	1,237		7,970		903		—		10,110
Revenue from contracts with customers	57,806		102,814		51,451		335		212,406
Other sources of non-interest income	54,464		—		15,704		40,798		110,966
Total non-interest income	$	112,270	$	102,814	$	67,155	$	41,133	$	323,372

	Year ended December 31, 2020
(In thousands)	Commercial Banking		HSA Bank		Retail Banking		Corporate and Reconciling		Consolidated Total
Non-interest Income:
Deposit service fees	$	14,744	$	92,693	$	48,489	$	106	$	156,032
Wealth and investment services	32,951		—		—		(35)		32,916
Other	1,174		8,133		482		—		9,789
Revenue from contracts with customers	48,869		100,826		48,971		71		198,737
Other sources of non-interest income	41,629		—		25,176		19,735		86,540
Total non-interest income	$	90,498	$	100,826	$	74,147	$	19,806	$	285,277

	Year ended December 31, 2019
(In thousands)	Commercial Banking		HSA Bank		Retail Banking		Corporate and Reconciling		Consolidated Total
Non-interest Income:
Deposit service fees	$	15,694	$	92,096	$	60,014	$	218	$	168,022
Wealth and investment services	32,967		—		—		(35)		32,932
Other	1,151		4,945		1,243		—		7,339
Revenue from contracts with customers	49,812		97,041		61,257		183		208,293
Other sources of non-interest income	41,372		—		15,892		19,758		77,022
Total non-interest income	$	91,184	$	97,041	$	77,149	$	19,941	$	285,315

Deposit service fees consist of fees earned from customer deposit accounts, such as account maintenance fees, insufficient funds, and other transactional service charges. Performance obligations for account maintenance services are satisfied on a monthly basis at a fixed transaction price, whereas performance obligations for other deposit service charges resulting from various customer-initiated transactions are satisfied at a point-in-time when the service is rendered. Payment for deposit service fees is generally received immediately or in the following month through a direct charge to the customers' accounts. On occasion, Webster may waive certain fees for its customers. Fee waivers are recognized as a reduction to revenue in the period the waiver is granted to the customer. Due to the insignificance of the amounts waived, Webster does not reduce its transaction price to reflect any variable consideration. The deposit service fees revenue stream also includes interchange fees earned from card transactions. The transaction price for interchange services is based on the transaction value and the interchange rate set by the card network. Performance obligations for interchange fees are satisfied at a point-in-time when the cardholders' transaction is authorized and settled. Payment for interchange fees is generally received immediately or in the following month.

Wealth and investment services consist of fees earned from asset management, trust administration, investment advisory services, and through facilitating securities transactions. Performance obligations for asset management and trust administration services are satisfied on a monthly basis at a transaction price based on a percentage of the month-end market value of the assets under administration. Payment for asset management and trust administration services is generally received a few days after month-end through a direct charge to the customers' accounts. Performance obligations for investment advisory services are satisfied over the period in which the services are provided through a time-based measurement of progress, and the agreed-upon transaction price with the customer varies depending on the nature of the services performed. Performance obligations for facilitating securities transactions are satisfied at the point-in-time when the securities are sold at a transaction price that is based on a percentage of the contract value. Payment for both investment advisory services and facilitating securities transactions may be received in advance of the service, but generally is received immediately or in the following month.

These disaggregated amounts are reconciled to non-interest income as presented within Note 21: Segment Reporting. Contracts with customers did not generate significant contract assets and liabilities at December 31, 2021 and 2020.