Revenue from Contracts with Customers

All of the Corporation’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Corporation’s noninterest income by revenue stream and reportable segment for the three and nine months ended September 30, 2018 and 2017. Items outside the scope of ASC 606 are noted as such.



	Three Months Ended September 30, 2018						Three Months Ended September 30, 2017
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	10,343	$	10,343	$	—	$	9,651	$	9,651
Insurance commissions	—		1,754		1,754		—		1,373		1,373
Capital markets revenue⁽¹⁾	710		—		710		843		—		843
Service charges on deposit accounts	726		—		726		676		—		676
Loan servicing and other fees⁽¹⁾	559		—		559		548		—		548
Net gain on sale of loans⁽¹⁾	631		—		631		799		—		799
Net gain on sale of investment securities available for sale⁽¹⁾	—		—		—		72		—		72
Net gain on sale of other real estate owned	5		—		5		—		—		—
Dividends on FHLB and FRB stock⁽¹⁾	375		—		375		217		—		217
Other operating income⁽²⁾	3,123		48		3,171		1,364		41		1,405
Total noninterest income	$	6,129	$	12,145	$	18,274	$	4,519	$	11,065	$	15,584

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $595 thousand and $520 thousand for the three months ended September 30, 2018 and 2017, respectively, which are within the scope of ASC 606.



	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking			Wealth Management		Consolidated
Fees for wealth management services	$	—	$	31,309	$	31,309	$	—		$	28,761	$	28,761
Insurance commissions	—		5,349		5,349		—			3,079		3,079
Capital markets revenue⁽¹⁾	3,481		—		3,481		1,796			—		1,796
Service charges on deposit accounts	2,191		—		2,191		1,953			—		1,953
Loan servicing and other fees⁽¹⁾	1,720		—		1,720		1,570			—		1,570
Net gain on sale of loans⁽¹⁾	1,677		—		1,677		1,948			—		1,948
Net gain on sale of investment securities available for sale⁽¹⁾	7		—		7		73			—		73
Net gain (loss) on sale of other real estate owned	292		—		292		(12		)	—		(12		)
Dividends on FHLB and FRB stock⁽¹⁾	1,316		—		1,316		649			—		649
Other operating income⁽²⁾	10,393		150		10,543		3,641			138		3,779
Total noninterest income	$	21,077	$	36,808	$	57,885	$	11,618		$	31,978	$	43,596

(1) Not within the scope of ASC 606.

(2) Other operating income includes Visa debit card income, safe deposit box rentals, and rent income totaling $1.7 million and $1.5 million for the nine months ended September 30, 2018 and 2017, respectively, which are within the scope of ASC 606.

A description of the Corporation’s revenue streams accounted for under ASC 606 follows:

Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Wealth Management Fees: The Corporation earns wealth management fee revenue from a variety of sources including fees from trust administration and other related fiduciary services, custody, investment management and advisory services, employee benefit account and IRA administration, estate settlement, tax service fees, shareholder service fees and brokerage.

Fees that are determined based on the market value of the assets held in their accounts are generally billed monthly, in arrears, based on the market value of assets at the end of the previous billing period. Other related services that are based on a fixed fee schedule are recognized when the services are rendered. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed, i.e. the trade date.

Included in other assets on the balance sheet is a receivable for wealth management fees that have been earned but not yet collected.

Insurance Commissions: The Corporation earns commissions from the sale of insurance policies, which are generally calculated as a percentage of the policy premium, and contingent income, which is calculated based on the volume and performance of the policies held by each carrier. Obligations for the sale of insurance policies are generally satisfied at the point in time which the policy is executed and are recognized at the point in time in which the amounts are known and collection is reasonably assured. Performance metrics for contingent income are generally satisfied over time, not exceeding one year, and are recognized at the point in time in which the amounts are known and collection is reasonably assured.

Visa Debit Card Income: The Corporation earns income fees from debit cardholder transactions conducted through the Visa payment network. Fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Gains/Losses on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed.