3. NONINTEREST INCOME

On January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The standard applies to certain revenue streams included in noninterest income on our audited Consolidated Statements of Income. See Note 2 for further information about our adoption of ASU 2014-09, and Note 21 for further information about the disaggregation of noninterest income by segment.

Credit/debit card and ATM income

The following table presents the components of credit/debit card and ATM income:



	Twelve Months Ended December 31,
(Dollars in thousands)	2018		2017		2016
Bailment fees	$	27,767	$	21,360	$	16,823
Interchange fees	14,982		13,696		12,390
Other card and ATM fees	1,088		1,060		686
Total credit/debit card and ATM income	$	43,837	$	36,116	$	29,899

Credit/debit card and ATM income is primarily composed of bailment fees which are earned from bailment arrangements with our customers. Bailment arrangements are legal relationships in which property is delivered to another party’s temporary custody and control without a transfer of ownership. The party receiving the property (the bailee) has possession and control of the property and is obligated to take reasonable care of the property. The party who transferred the property (the bailor) retains ownership interest of the property. In the event that the bailee files for bankruptcy protection, the property is not included in the bailee’s assets. The bailee pays an agreed-upon fee for the use of the bailor’s property in exchange for the bailor allowing use of the assets at the bailee's site. Bailment fees are earned from cash that is owned by WSFS but available for customers’ use at an offsite location, such as cash located in an ATM at a customer’s place of business. These fees are typically indexed to a market interest rate. This revenue stream generates fee income through monthly billing for bailment services.

Credit/debit card and ATM income also includes interchange fees. Interchange fees are paid by a merchant's bank to a bank that issued a debit or credit card used in a transaction to compensate the issuing bank for the value and benefit the merchant receives from accepting electronic payments. These revenue streams generate fee income at the time a transaction occurs and are recorded as revenue at the time of the transaction.

Investment management and fiduciary income

The following table presents the components of investment management and fiduciary income:



	Twelve Months Ended December 31,
(Dollars in thousands)	2018		2017		2016
Trust fees	$	23,386	$	19,651	$	17,978
Wealth management and advisory fees	16,216		15,452		7,713
Total investment management and fiduciary income	$	39,602	$	35,103	$	25,691

Investment management and fiduciary income is primarily composed of trust fees and wealth management and advisory fees. Trust fees are based on revenue earned from investment and trustee services to families and individuals across the U.S.; custody, escrow and trustee services on structured finance transactions; indenture trustee, administrative agent and collateral agent services to institutions and corporations; and commercial domicile and independent director services. Most fees are flat fees, except for a portion of personal and corporate trustee fees where we earn a percentage on AUM. This revenue stream primarily generates fee income through monthly, quarterly and annual billings for services provided.

Wealth management and advisory fees consists of fees from Cypress, West Capital, Powdermill, WSFS Wealth Client Management, WSFS Wealth Investments and WSFS Institutional Services. Wealth management and advisory fees are based on revenue earned from services including asset management, financial planning, family office, and, to a lesser extent, brokerage. The fees are based on the market value of assets or are assessed as a flat fee. This revenue stream primarily generates fee income through quarterly and annual billing for the services.

Deposit service charges

The following table presents the components of deposit service charges:



	Twelve Months Ended December 31,
(Dollars in thousands)	2018		2017		2016
Service fees	$	10,526	$	10,073	$	9,162
Return and overdraft fees	7,676		7,650		7,969
Other deposit service fees	569		595		603
Total deposit service charges	$	18,771	$	18,318	$	17,734

Deposit service charges includes revenue earned from our core deposit products, certificates of deposit, and brokered deposits. We generate revenues from deposit service charges primarily through service charges and overdraft fees. Service charges consist primarily of monthly account maintenance fees, cash management fees, foreign ATM fees and other maintenance fees. All of these revenue streams generate fee income through service charges for monthly account maintenance and similar items, transfer fees, late fees, overlimit fees, and stop payment fees. Revenue is recorded at the time of the transaction.

Other income

The following table presents the components of other income:



	Twelve Months Ended December 31,
(Dollars in thousands)	2018		2017		2016
Managed service fees	12,113		10,984		11,244
Currency preparation	3,575		2,900		2,706
ATM insurance	2,394		2,795		3,040
Miscellaneous products and services	8,773		6,388		1,959
Total other income	$	26,855	$	23,067	$	18,949

Other income consists of managed service fees, which are primarily courier fees related to cash management, currency preparation, ATM insurance and other miscellaneous products and services offered by the Bank. These fees are primarily generated through monthly billings or at the time of the transaction.

Arrangements with multiple performance obligations

Our contracts with customers may include multiple performance obligations. For such arrangements, we allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers.

Practical expedients and exemptions

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.