XML 25 R17.htm IDEA: XBRL DOCUMENT v3.20.1
Fees and Commissions Revenue Fees and Commissions Revenue
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Fees and Commissions Revenue [Text Block] Fees and Commissions Revenue

Fees and commissions revenue is generated through the sales of products, consisting primarily of financial instruments, and the performance of services for customers under contractual obligations. Revenue from providing services for customers is recognized at the time services are provided in an amount that reflects the consideration we expect to be entitled to for those services. Revenue is recognized based on the application of five steps:
•
Identify the contract with a customer
•
Identify the performance obligations in the contract
•
Determine the transaction price
•
Allocate the transaction price to the performance obligations in the contract
•
Recognize revenue when (or as) the Company satisfies a performance obligation

For contracts with multiple performance obligations, individual performance obligations are accounted for separately if the customer can benefit from the good or service on its own or with other resources readily available to the customer and the promise to transfer goods and services to the customer is separately identifiable in the contract. The transaction price is allocated to the performance obligations based on relative standalone selling prices.

Revenue is recognized on a gross basis whenever we have primary responsibility and risk in providing the services or products to our customers and have discretion in establishing the price for the services or products. Revenue is recognized on a net basis whenever we act as an agent for products or services of others. 
 
Brokerage and trading revenue includes revenues from trading, customer hedging, retail brokerage and investment banking. Trading revenue includes net realized and unrealized gains primarily related to sales of securities to institutional customers and related derivative contracts. Customer hedging revenue includes realized and unrealized changes in the fair value of derivative contracts held for customer risk management programs including credit valuation adjustments, as necessary. We offer commodity, interest rate, foreign exchange and equity derivatives to our customers. These customer contracts are offset with contracts with selected counterparties and exchanges to minimize changes in market risk from changes in commodity prices, interest rates or foreign exchange rates. Retail brokerage revenue represents fees and commissions earned on sales of fixed income securities, annuities, mutual funds and other financial instruments to retail customers. Investment banking revenue includes fees earned upon completion of underwriting and financial advisory services. Investment banking revenue also includes fees earned in conjunction with loan syndications. Insurance brokerage revenues represents fees and commissions earned on placement of insurance products with carriers for property and casualty and health coverage.
 
Transaction card revenue includes merchant discount fees and electronic funds transfer network fees, net of interchange fees paid to card issuers and assessments paid to card networks. Merchant discount fees represent fees paid by customers for account management and electronic processing of card transactions. Merchant discount fees are recognized at the time the customer’s transactions are processed or other services are performed. The Company also maintains the TransFund electronic funds transfer network for the benefit of its members, which includes the Bank. Electronic funds transfer fees are recognized as electronic transactions processed on behalf of its members. 
 
Fiduciary and asset management revenue includes fees from asset management, custody, recordkeeping, investment advisory and administration services. Revenue is recognized on an accrual basis at the time the services are performed and may be based on either the fair value of the account or the service provided.
 
Deposit service charges and fees include commercial account service charges, overdraft fees, check card fee revenue and automated service charge and other deposit service fees. Fees are recognized at least quarterly in accordance with published deposit account agreements and disclosure statements for retail accounts or contractual agreements for commercial accounts. Item charges for overdraft or non-sufficient funds items are recognized as items are presented for payment. Account balance charges and activity fees are accrued monthly and collected in arrears. Commercial account activity fees may be offset by an earnings credit based on account balances. Check card fees represent interchange fees paid by a merchant bank for transactions processed from cards issued by the Company. Check card fees are recognized when transactions are processed.  

Mortgage banking revenue includes revenues recognized in conjunction with the origination, marketing and servicing of conventional and government-sponsored residential mortgage loans. Mortgage production revenue includes net realized gains (losses) on sales of residential mortgage loans in the secondary market and the net change in unrealized gains (losses) on residential mortgage loans held for sale. Mortgage production revenue also includes changes in the fair value of derivative contracts not designated as hedging instruments related to residential mortgage loan commitments and forward sales contracts. Mortgage servicing revenue includes servicing fee income and late charges on loans serviced for others.

Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended March 31, 2020.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
34,384

 
$
—

 
$
34,384

 
$
34,384

 
$
—

Customer hedging revenue
2,525

 
—

 
135

 
563

 
3,223

 
3,223

 
—

Retail brokerage revenue
—

 
—

 
4,343

 
—

 
4,343

 
—

 
4,343

Insurance brokerage revenue
—

 
—

 
3,789

 
—

 
3,789

 
—

 
3,789

Investment banking revenue
1,880

 
—

 
3,160

 
—

 
5,040

 
1,828

 
3,212

Brokerage and trading revenue
4,405

 
—

 
45,811

 
563

 
50,779

 
39,435

 
11,344

TransFund EFT network revenue
18,212

 
831

 
(19
)
 
2

 
19,026

 
—

 
19,026

Merchant services revenue
2,305

 
14

 
—

 
—

 
2,319

 
—

 
2,319

Corporate card revenue
520

 
—

 
16

 
—

 
536

 
—

 
536

Transaction card revenue
21,037

 
845

 
(3
)
 
2

 
21,881

 
—

 
21,881

Personal trust revenue
—

 
—

 
20,649

 
—

 
20,649

 
—

 
20,649

Corporate trust revenue
—

 
—

 
6,362

 
—

 
6,362

 
—

 
6,362

Institutional trust & retirement plan services revenue
—

 
—

 
11,757

 
—

 
11,757

 
—

 
11,757

Investment management services and other revenue
—

 
—

 
5,731

 
(41
)
 
5,690

 
—

 
5,690

Fiduciary and asset management revenue
—

 
—

 
44,499

 
(41
)
 
44,458

 
—

 
44,458

Commercial account service charge revenue
11,039

 
410

 
545

 
(1
)
 
11,993

 
—

 
11,993

Overdraft fee revenue
49

 
7,205

 
22

 
2

 
7,278

 
—

 
7,278

Check card revenue
—

 
5,229

 
—

 
—

 
5,229

 
—

 
5,229

Automated service charge and other deposit fee revenue
229

 
1,386

 
13

 
2

 
1,630

 
—

 
1,630

Deposit service charges and fees
11,317

 
14,230

 
580

 
3

 
26,130

 
—

 
26,130

Mortgage production revenue
—

 
21,569

 
—

 
—

 
21,569

 
21,569

 
—

Mortgage servicing revenue
—

 
16,042

 
—

 
(444
)
 
15,598

 
15,598

 
—

Mortgage banking revenue
—

 
37,611

 
—

 
(444
)
 
37,167

 
37,167

 
—

Other revenue
4,700

 
2,376

 
6,994

 
(1,761
)
 
12,309

 
8,408

 
3,901

Total fees and commissions revenue
$
41,459

 
$
55,062

 
$
97,881

 
$
(1,678
)
 
$
192,724

 
$
85,010

 
$
107,714

1  
Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2 
In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.

 
 
 
 
 
 
 
 
 
 
 
 
 
 



Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended March 31, 2019.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other3
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
12,920

 
$
—

 
$
12,920

 
$
12,920

 
$
—

Customer hedging revenue
1,575

 
—

 
5,728

 
(626
)
 
6,677

 
6,677

 
—

Retail brokerage revenue
—

 
—

 
4,074

 
(52
)
 
4,022

 
—

 
4,022

Insurance brokerage revenue
—

 
—

 
379

 
3,729

 
4,108

 
—

 
4,108

Investment banking revenue
1,389

 
—

 
2,501

 
—

 
3,890

 
1,229

 
2,661

Brokerage and trading revenue
2,964

 
—

 
25,602

 
3,051

 
31,617

 
20,826

 
10,791

TransFund EFT network revenue
17,654

 
958

 
(17
)
 
1

 
18,596

 
—

 
18,596

Merchant services revenue
1,925

 
14

 
—

 
123

 
2,062

 
—

 
2,062

Corporate card revenue
80

 
—

 
—

 
—

 
80

 
—

 
80

Transaction card revenue
19,659

 
972

 
(17
)
 
124

 
20,738

 
—

 
20,738

Personal trust revenue
—

 
—

 
19,574

 
—

 
19,574

 
—

 
19,574

Corporate trust revenue
—

 
—

 
6,201

 
—

 
6,201

 
—

 
6,201

Institutional trust & retirement plan services revenue
—

 
—

 
11,107

 
—

 
11,107

 
—

 
11,107

Investment management services and other revenue
—

 
—

 
4,801

 
1,675

 
6,476

 
—

 
6,476

Fiduciary and asset management revenue
—

 
—

 
41,683

 
1,675

 
43,358

 
—

 
43,358

Commercial account service charge revenue
10,062

 
387

 
527

 
1,807

 
12,783

 
—

 
12,783

Overdraft fee revenue
74

 
8,395

 
27

 
(236
)
 
8,260

 
—

 
8,260

Check card revenue
—

 
4,992

 
—

 
164

 
5,156

 
—

 
5,156

Automated service charge and other deposit fee revenue
158

 
1,665

 
177

 
44

 
2,044

 
—

 
2,044

Deposit service charges and fees
10,294

 
15,439

 
731

 
1,779

 
28,243

 
—

 
28,243

Mortgage production revenue
—

 
7,868

 
—

 
—

 
7,868

 
7,868

 
—

Mortgage servicing revenue
—

 
16,445

 
—

 
(479
)
 
15,966

 
15,966

 
—

Mortgage banking revenue
—

 
24,313

 
—

 
(479
)
 
23,834

 
23,834

 
—

Other revenue
5,129

 
2,097

 
5,257

 
279

 
12,762

 
8,720

 
4,042

Total fees and commissions revenue
$
38,046

 
$
42,821

 
$
73,256

 
$
6,429

 
$
160,552

 
$
53,380

 
$
107,172


1  
Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2 
In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.
3 
CoBiz operations are included in Funds Management and Other for the first quarter of 2019.