NOTE 19 Noninterest Income

The following table presents the Company’s noninterest income for the years ended December 31, 2019, 2018, and 2017.


	Year ended
	December 31,
(dollars in thousands)	2019		2018		2017
Retirement and benefits	$	63,811	$	63,316	$	62,390
Wealth management		15,502		14,900		13,953
Mortgage banking (1)		25,805		17,630		19,748
Service charges on deposit accounts		1,772		1,808		1,854
Net gains (losses) on investment securities (1)		357		85		(13)
Other
Interchange fees		1,972		2,005		1,997
Bank-owned life insurance income (1)		803		803		820
Misc. transactional fees		1,236		1,106		1,070
Other noninterest income		2,936		1,096		1,226
Total noninterest income	$	114,194	$	102,749	$	103,045

(1)

Not within the scope of ASC 606.

Contract balances: A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balances is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market value. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2019 and 2018, the Company did not have any significant contract balances.

Contract acquisition costs: In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the company did not capitalize any contract acquisition costs.