XML 44 R29.htm IDEA: XBRL DOCUMENT v3.22.4
Revenue from contracts with Customers Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2022
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. These disaggregated amounts, together with sources of other non-interest income that are subject to other GAAP topics, have been reconciled to non-interest income by reportable segment as presented within Note 21: Segment Reporting.
Year ended December 31, 2022
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Non-interest Income:
Deposit service fees$27,663 $97,654 $71,353 $1,802 $198,472 
Loan and lease related fees (1)
21,498 — — — 21,498 
Wealth and investment services11,350 — 28,957 (30)40,277 
Other— 6,932 1,493 — 8,425 
Revenue from contracts with customers60,511 104,586 101,803 1,772 268,672 
Other sources of non-interest income110,926 — 17,888 43,297 172,111 
Total non-interest income$171,437 $104,586 $119,691 $45,069 $440,783 
Year ended December 31, 2021
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Non-interest Income:
Deposit service fees$16,933 $94,844 $50,561 $372 $162,710 
Wealth and investment services12,152 — 27,471 (37)39,586 
Other— 7,970 2,140 — 10,110 
Revenue from contracts with customers29,085 102,814 80,172 335 212,406 
Other sources of non-interest income54,453 — 15,715 40,798 110,966 
Total non-interest income$83,538 $102,814 $95,887 $41,133 $323,372 
Year ended December 31, 2020
(In thousands)Commercial
Banking		HSA
Bank		Consumer
Banking		Corporate and
Reconciling		Consolidated
Total
Non-interest Income:
Deposit service fees$14,740 $92,693 $48,493 $106 $156,032 
Wealth and investment services10,644 — 22,307 (35)32,916 
Other— 8,133 1,656 — 9,789 
Revenue from contracts with customers25,384 100,826 72,456 71 198,737 
Other sources of non-interest income41,483 — 25,322 19,735 86,540 
Total non-interest income$66,867 $100,826 $97,778 $19,806 $285,277 
(1)A portion of loan and lease related fees comprises income generated from factored receivables and payroll financing activities that is within the scope of ASC Topic 606. These revenue streams were new to the Company in 2022 due to the businesses acquired in connection with the Sterling merger.
Contracts with customers did not generate significant contract assets and liabilities at December 31, 2022, and 2021.
Major Revenue Streams
Deposit service fees consist of fees earned from commercial and consumer customer deposit accounts, such as account maintenance and cash management/analysis fees, as well as other transactional service charges (i.e., insufficient funds, wire transfer, stop payment fees, etc.). Performance obligations for account maintenance services and cash management/analysis fees are satisfied on a monthly basis at a fixed transaction price, whereas performance obligations for other deposit service charges that result 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. Certain commercial customer contracts include credit clauses, whereby the Company will grant credit upon the customer meeting pre-determined conditions, which can be used to offset fees. On occasion, the Company may also waive certain fees. 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, the Company does not reduce its transaction price to reflect any variable consideration.
The deposit service fees revenue stream also includes interchange fees earned from debit and credit 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.
Factored receivables non-interest income consists of fees earned from accounts receivable management services. The Company factors accounts receivable, with and without recourse, for customers whereby the Company purchases their accounts receivable at a discount and assumes the risk, as applicable, and ownership of the assets through direct cash receipt from the end consumer. Factoring services are performed in exchange for a non-refundable fee at a transaction price based on a percentage of the gross invoice amount of each receivable purchased, subject to a minimum required amount. The performance obligation for factoring services is generally satisfied at a point-in-time when the receivable is assigned to the Company. However, should the commission earned not meet or exceed the minimum required annual amount, the difference between that and the actual amount is recognized at the end of the contract term. Other fees associated with factoring receivables may include wire transfer and technology fees, field examination fees, and Uniform Commercial Code fees, where the performance obligations are satisfied at a point-in-time when the services are rendered. Payment from the customer for factoring services is generally received immediately or within the following month.
Payroll finance non-interest income consists of fees earned from performing payroll financing and business process outsourcing services, including full back-office technology and tax accounting services, along with payroll preparation, making payroll tax payments, invoice billings, and collections for independently-owned temporary staffing companies nationwide. Performance obligations for payroll finance and business processing activities are either satisfied upon completion of the support services or as payroll remittances are made on behalf of customers to fund their employee payroll, which generally occurs on a weekly basis. The agreed-upon transaction price is based on a fixed-percentage per the terms of the contract, which could be subject to a hold-back reserve to provide for any balances that are assessed to be at risk of collection. When the Company collects on amounts due from end consumers on behalf of its customers and at the time of financing payroll, the Company retains the agreed-upon transaction price payable for the performance of its services and remits an amount to the customer net of any advances and payroll tax withholdings, as applicable.
Wealth and investment services consist of fees earned from asset management, trust administration, and investment advisory services, and through facilitating securities transactions. Performance obligations for asset management and trust administration services are satisfied on a monthly or quarterly basis at a transaction price based on a percentage of the period-end market value of the assets under administration. Payment for asset management and trust administration services is generally received a few days after period-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 a 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 period, in arrears.