Fees and Commissions Revenue Fees and Commissions Revenue

9 Months Ended

Sep. 30, 2018

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.

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 September 30, 2018.



	Commercial		Consumer		Wealth Management			Funds Management & Other			Consolidated		Out of Scope¹		In Scope²
Trading revenue	$	—	$	—	$	4,830		$	—		$	4,830	$	4,830	$	—
Customer hedging revenue	1,350		—		6,935			229			8,514		8,514		—
Retail brokerage revenue	—		—		4,568			(73		)	4,495		—		4,495
Investment banking revenue	1,765		—		3,482			—			5,247		1,411		3,836
Brokerage and trading revenue	3,115		—		19,815			156			23,086		14,755		8,331
TransFund EFT network revenue	18,397		1,009		(21		)	2			19,387		—		19,387
Merchant services revenue	1,995		14		—			—			2,009		—		2,009
Transaction card revenue	20,392		1,023		(21		)	2			21,396		—		21,396
Personal trust revenue	—		—		35,528			—			35,528		—		35,528
Corporate trust revenue	—		—		5,741			—			5,741		—		5,741
Institutional trust & retirement plan services revenue	—		—		11,056			—			11,056		—		11,056
Investment management services and other	—		—		5,236			(47		)	5,189		—		5,189
Fiduciary and asset management revenue	—		—		57,561			(47		)	57,514		—		57,514
Commercial account service charge revenue	10,294		366		587			(3		)	11,244		—		11,244
Overdraft fee revenue	95		9,413		30			3			9,541		—		9,541
Check card revenue	—		5,254		—			—			5,254		—		5,254
Automated service charge and other deposit fee revenue	35		1,661		22			8			1,726		—		1,726
Deposit service charges and fees	10,424		16,694		639			8			27,765		—		27,765
Mortgage production revenue	—		7,250		—			—			7,250		7,250		—
Mortgage servicing revenue	—		16,748		—			(462		)	16,286		16,286		—
Mortgage banking revenue	—		23,998		—			(462		)	23,536		23,536		—
Other revenue	5,460		2,323		5,568			862			14,213		10,051		4,162
Total fees and commissions revenue	$	39,391	$	44,038	$	83,562		$	519		$	167,510	$	48,342	$	119,168


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 nine months ended September 30, 2018.



	Commercial		Consumer		Wealth Management			Funds Management & Other			Consolidated		Out of Scope¹		In Scope²
Trading revenue	$	—	$	—	$	21,562		$	—		$	21,562	$	21,562	$	—
Customer hedging revenue	6,264		—		21,511			1,441			29,216		29,216		—
Retail brokerage revenue	—		—		14,306			(246		)	14,060		—		14,060
Investment banking revenue	5,729		—		9,655			—			15,384		4,772		10,612
Brokerage and trading revenue	11,993		—		67,034			1,195			80,222		55,550		24,672
TransFund EFT network revenue	54,647		3,005		(61		)	5			57,596		—		57,596
Merchant services revenue	5,720		45		—			—			5,765		—		5,765
Transaction card revenue	60,367		3,050		(61		)	5			63,361		—		63,361
Personal trust revenue	—		—		75,568			—			75,568		—		75,568
Corporate trust revenue	—		—		16,317			—			16,317		—		16,317
Institutional trust & retirement plan services revenue	—		—		33,545			—			33,545		—		33,545
Investment management services and other	—		—		15,760			(145		)	15,615		—		15,615
Fiduciary and asset management revenue	—		—		141,190			(145		)	141,045		—		141,045
Commercial account service charge revenue	32,150		1,087		1,802			(3		)	35,036		—		35,036
Overdraft fee revenue	283		26,665		96			13			27,057		—		27,057
Check card revenue	—		15,515		—			—			15,515		—		15,515
Automated service charge and other deposit fee revenue	110		4,953		72			10			5,145		—		5,145
Deposit service charges and fees	32,543		48,220		1,970			20			82,753		—		82,753
Mortgage production revenue	—		26,617		—			—			26,617		26,617		—
Mortgage servicing revenue	—		50,677		—			(1,387		)	49,290		49,290		—
Mortgage banking revenue	—		77,294		—			(1,387		)	75,907		75,907		—
Other revenue	17,379		6,770		18,725			(1,813		)	41,061		27,778		13,283
Total fees and commissions revenue	$	122,282	$	135,334	$	228,858		$	(2,125	)	$	484,349	$	159,235	$	325,114


¹	Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.

In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.