NOTE 13 Noninterest Income

All of the Company’s revenue from contracts with customers, within the scope of ASC 606, is recognized in noninterest income. The material groups of noninterest income are defined as follows:

Retirement and benefit services: Retirement and benefit services income is primarily comprised of fees earned from the administration of retirement plans, record‑keeping, compliance services, payroll processing, health savings accounts, and flexible benefit plans. Fees are earned based on a combination of the market value of assets under administration and transaction based fees for services provided. Fees that are determined based on the market value of the assets under administration are generally billed monthly or quarterly in arrears and recognized monthly as the Company’s performance obligations are met. Other transaction based fees are recognized monthly as the performance obligation is satisfied.

Wealth management: Wealth management income is earned from a variety of sources including trust administration and other related fiduciary services, custody, investment management and advisory services, and brokerage. Fees are based on the market value of the assets under management and are generally billed monthly in arrears and recognized monthly as the Company’s performance obligations are met. Commissions on transactions are recognized on a trade‑date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Other related services are based on a fixed fee schedule and the revenue is recognized when the services are rendered, which is when the Company has satisfied its performance obligation.

Service charges on deposit accounts: Service charges on deposit accounts primarily consist of account analysis fees, monthly maintenance fees, overdraft fees, and other deposit account related fees. Overdraft fees and certain service charges are fixed and the performance obligation is typically satisfied at the time of the related transaction. The consideration for analysis fees and monthly maintenance fees are variable as the fee can be reduced if the customer meets certain qualifying metrics. The Company’s performance obligations are satisfied at the time of the transaction or over the course of a month.

Other noninterest income: Other noninterest income components include debit card interchange fees, bank‑owned life insurance income and miscellaneous transactional fees. Income earned from these revenue streams is generally recognized concurrently with the satisfaction of the performance obligation.

The following table presents the Company’s noninterest income for the three and nine months ended September 30, 2019 and 2018.


	Three months ended				Nine months ended
	September 30,				September 30,
(dollars in thousands)	2019		2018		2019		2018
Retirement and benefits	$	15,307	$	15,536	$	46,142	$	46,873
Wealth management		3,896		3,685		11,385		10,948
Mortgage banking (1)		8,135		5,318		19,739		13,551
Service charges on deposit accounts		447		442		1,321		1,333
Net gains (losses) on investment securities (1)		48		13		357		119
Other
Interchange fees		506		509		1,480		1,519
Bank-owned life insurance income (1)		205		202		601		602
Misc. transactional fees		312		272		881		784
Other noninterest income		724		281		2,732		879
Total noninterest income	$	29,580	$	26,258	$	84,638	$	76,608

(1)

Not within scope of ASC 606.