Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

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 six months ended June 30, 2019 and 2018. Items outside the scope of ASC 606 are noted as such.



	Three Months Ended June 30, 2019						Three Months Ended June 30, 2018
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—	$	11,510	$	11,510	$	—	$	10,658	$	10,658
Insurance commissions	—		1,697		1,697		—		1,902		1,902
Capital markets revenue⁽¹⁾	1,489		—		1,489		2,105		—		2,105
Service charges on deposit accounts	852		—		852		752		—		752
Loan servicing and other fees⁽¹⁾	553		—		553		475		—		475
Net gain on sale of loans⁽¹⁾	752		—		752		528		—		528
Net gain on sale of OREO	—		—		—		111		—		111
Dividends on FHLB and FRB stock⁽¹⁾	316		—		316		510		—		510
Other operating income⁽²⁾	3,026		26		3,052		2,976		58		3,034
Total noninterest income	$	6,988	$	13,233	$	20,221	$	7,457	$	12,618	$	20,075

(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 $525 thousand and $610 thousand for the three months ended June 30, 2019 and 2018, respectively, which are within the scope of ASC 606.



	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
(dollars in thousands)	Banking			Wealth Management		Consolidated			Banking		Wealth Management		Consolidated
Fees for wealth management services	$	—		$	21,902	$	21,902		$	—	$	20,966	$	20,966
Insurance commissions	—			3,369		3,369			—		3,595		3,595
Capital markets revenue⁽¹⁾	3,708			—		3,708			2,771		—		2,771
Service charges on deposit accounts	1,660			—		1,660			1,465		—		1,465
Loan servicing and other fees⁽¹⁾	1,162			—		1,162			1,161		—		1,161
Net gain on sale of loans⁽¹⁾	1,071			—		1,071			1,046		—		1,046
Net gain on sale of investment securities available for sale⁽¹⁾	—			—		—			7		—		7
Net (loss) gain on sale of OREO	(24		)	—		(24		)	287		—		287
Dividends on FHLB and FRB stock⁽¹⁾	727			—		727			941		—		941
Other operating income⁽²⁾	5,852			47		5,899			7,270		102		7,372
Total noninterest income	$	14,156		$	25,318	$	39,474		$	14,948	$	24,663	$	39,611

(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 $1.0 million and $1.1 million for the six months ended June 30, 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.