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 months ended March 31, 2019 and 2018. Items outside the scope of ASC 606 are noted as such.



	Three Months Ended March 31, 2019								Three Months Ended March 31, 2018
(dollars in thousands)	Banking			Wealth Management		Consolidated			Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—		$	10,392	$	10,392		$	—	$	10,308	$	10,308
Insurance commissions	—			1,672		1,672			—		1,693		1,693
Capital markets revenue⁽¹⁾	2,219			—		2,219			666		—		666
Service charges on deposit accounts	808			—		808			713		—		713
Loan servicing and other fees⁽¹⁾	609			—		609			686		—		686
Net gain on sale of loans⁽¹⁾	319			—		319			518		—		518
Net gain on sale of investment securities available for sale⁽¹⁾	—			—		—			7		—		7
Net (loss) / gain on sale of other real estate owned	(24		)	—		(24		)	176		—		176
Dividends on FHLB and FRB stock⁽¹⁾	411			—		411			431		—		431
Other operating income⁽²⁾	2,826			21		2,847			4,294		44		4,338
Total noninterest income	$	7,168		$	12,085	$	19,253		$	7,491	$	12,045	$	19,536

(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 $512 thousand and $521 thousand for the three months ended March 31, 2019 and 2018, respectively, which are within the scope of ASC 606.

A description of the Corporation’s primary 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 Service charges on deposits are withdrawn from the customer’s account balance.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 or quarterly, 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.