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 six months ended June 30, 2018 and 2017. Items outside the scope of ASC 606 are noted as such.



	Three Months Ended June 30, 2018						Three Months Ended June 30, 2017
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking			Wealth Management		Consolidated
Fees for wealth management services	$	—	$	10,658	$	10,658	$	—		$	9,807	$	9,807
Insurance commissions⁽¹⁾	—		1,902		1,902		—			943		943
Capital markets revenue⁽¹⁾	2,105		—		2,105		953			—		953
Service charges on deposit accounts	752		—		752		630			—		630
Loan servicing and other fees⁽¹⁾	475		—		475		519			—		519
Net gain on sale of loans⁽¹⁾	528		—		528		520			—		520
Net gain on sale of investment securities available for sale⁽¹⁾	—		—		—		—			—		—
Net gain on sale of other real estate owned	111		—		111		(12		)	—		(12		)
Dividends on FHLB and FRB stock⁽¹⁾	510		—		510		218			—		218
Other operating income⁽²⁾	2,976		58		3,034		1,158			49		1,207
Total noninterest income	$	7,457	$	12,618	$	20,075	$	3,986		$	10,799	$	14,785

(1) Not within the scope of ASC 606.

(2) Other operating income includes merchant interchange fees, safe deposit box rentals, and rent income totaling $610 thousand and $501 thousand for the three months ended June 30, 2018 and 2017, respectively, which are within the scope of ASC 606.



	Six Months Ended June 30, 2018						Six Months Ended June 30, 2017
(dollars in thousands)	Banking		Wealth Management		Consolidated		Banking			Wealth Management		Consolidated
Fees for wealth management services	$	—	$	20,966	$	20,966	$	—		$	19,110	$	19,110
Insurance commissions⁽¹⁾	—		3,595		3,595		—			1,706		1,706
Capital markets revenue⁽¹⁾	2,771		—		2,771		953			—		953
Service charges on deposit accounts	1,465		—		1,465		1,277			—		1,277
Loan servicing and other fees⁽¹⁾	1,161		—		1,161		1,022			—		1,022
Net gain on sale of loans⁽¹⁾	1,046		—		1,046		1,149			—		1,149
Net gain on sale of investment securities available for sale⁽¹⁾	7		—		7		1			—		1
Net gain on sale of other real estate owned	287		—		287		(12		)	—		(12		)
Dividends on FHLB and FRB stock⁽¹⁾	941		—		941		432			—		432
Other operating income⁽²⁾	7,270		102		7,372		2,277			97		2,374
Total noninterest income	$	14,948	$	24,663	$	39,611	$	7,099		$	20,913	$	28,012

(1) Not within the scope of ASC 606.

(2) Other operating income includes merchant interchange fees, safe deposit box rentals, and rent income totaling $1.1 million and $980 thousand for the six months ended June 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.

Interchange Income: The Corporation earns interchange income fees from debit cardholder transactions conducted through the Visa payment network. Interchange 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.