REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

9.  REVENUE FROM CONTRACTS WITH CUSTOMERS:

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income.

The following table presents the sources of noninterest income for the years ended December 31:

(In thousands)	2020		2019		2018
Service charges on deposits
Overdraft fees	$	405	$	662	$	726
Interchange income		1,208		1,238		1,251
Other		1,542		1,588		1,525
Wealth management fees		40,048		37,508		32,356
Investment brokerage fees		813		855		889
(Losses)/gains on sales of OREO		—		—		(58	)
Other (a)		17,744		12,845		7,504
Total noninterest other income	$	61,760	$	54,696	$	44,193

(a) All of the other category is outside the scope of ASC 606.

The following table presents the sources of noninterest income by operating segment for the years ended December 31:

	2020
Revenue by Operating			Wealth
Segment	Banking		Management		Total
Service charges on deposits
Overdraft fees	$	405	$	—	$	405
Interchange income		1,208		—		1,208
Other		1,542		—		1,542
Wealth management fees		—		40,048		40,048
Investment brokerage fees		—		813		813
Other (a)		15,949		1,795		17,744
Total noninterest income	$	19,104	$	42,656	$	61,760

	2019
Revenue by Operating			Wealth
Segment	Banking		Management		Total
Service charges on deposits
Overdraft fees	$	662	$	—	$	662
Interchange income		1,238		—		1,238
Other		1,588		—		1,588
Wealth management fees		—		37,508		37,508
Investment brokerage fees		—		855		855
Other (a)		11,511		1,334		12,845
Total noninterest income	$	14,999	$	39,697	$	54,696

	2018
Revenue by Operating				Wealth
Segment	Banking			Management		Total
Service charges on deposits
Overdraft fees	$	726		$	—	$	726
Interchange income		1,251			—		1,251
Other		1,525			—		1,525
Wealth management fees		—			32,356		32,356
Investment brokerage fees		—			889		889
Gains/(losses) on sales of OREO		(58	)		—		(58	)
Other (a)		6,569			935		7,504
Total noninterest income	$	10,013		$	34,180	$	44,193

(a) All of the other category is outside the scope of ASC 606.

A description of the Company’s revenue streams accounted for under ASC 606 follows:

Service charges on deposit accounts:  The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft fees.  Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that point in time the Company fulfills the customer’s request.  Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation.  Overdraft fees are recognized at the point in time that the overdraft occurs.  Service charges on deposits are withdrawn from the customer’s account balance.

Interchange income:  The Company earns interchange fees from debit cardholder transactions conducted through the Visa payment network.  Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.  Interchange income is presented gross of cardholder rewards.  Cardholder rewards are included in other expenses in the statement of income.  Cardholder rewards reduced interchange income by $115,000, $138,000, and $134,000 for 2020, 2019, and 2018, respectively.  

Wealth management fees (gross):  The Company earns wealth management fees from its contracts with wealth management clients to manage assets for investment, and/or to transact on their accounts.  These fees are primarily earned over time as the Company charges its clients on a monthly or quarterly basis in accordance with its investment advisory agreements.  Fees are generally assessed based on a tiered scale of the market value of AUM at month end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date).

Investment brokerage fees (net):  The Company earns fees from investment brokerage services provided to its customers by a third-party service provider.  The Company receives commissions from the third-party service provider twice a month based upon customer activity for the month.  The fees are recognized monthly and a receivable is recorded until commissions are generally paid by the 15^th of the following month.  Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

Gains/(losses) on sales of OREO:  The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed.  When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform its obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.  In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present.  The Company did not record a gain or loss in 2020 or 2019.  The Company recorded a loss on sale of OREO of $58,000 for 2018.

Other:  All of the other income items are outside the scope of ASC 606.