Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

Revenue from Contracts with Customers 

The Company records revenue when control of the promised products or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those products or services. All of the Company's revenue from contracts with customers in the scope of ASC 606 is recognized in non-interest income.

The following table presents the Company's sources of non-interest income for the years ended December 31, 2021, 2020, and 2019. Items outside of the scope of ASC 606 are noted as such.

(in thousands)	2021		2020		2019
Non-interest income:
Service charges on deposits
Account maintenance fees	$	24,137	$	22,497	$	20,672
Transaction-based and overdraft service charges	17,949		18,341		24,944
Total service charges on deposits	42,086		40,838		45,616
Card-based fees	36,114		28,190		33,051
Brokerage revenue	5,112		15,599		15,877
Total revenue from contracts with customers	83,312		84,627		94,544
Other sources of non-interest income (a)	273,006		327,382		245,280
Total non-interest income	$	356,318	$	412,009	$	339,824

(a) The revenue in the remaining non-interest income line items is out of the scope of ASC 606 accounting guidance and is recognized when earned in accordance with the Company's policies.

Service charges on deposits

The Company earns fees from its deposit customers for account maintenance and transaction-based and overdraft services. Account maintenance fees consist primarily of account fees and analyzed account fees charged on deposit accounts on a monthly basis. The performance obligation is satisfied, and the fees are recognized on a monthly basis as the service period is completed. Transaction-based fees on deposit accounts are charged to deposit customers for specific services provided to the customer, such as non-sufficient funds fees, overdraft fees, and wire fees. The performance obligation is completed as the transaction occurs and the fees are recognized at the time each specific service is provided to the customer.

Card-based fees

In 2021, the Company added the card-based fees line item, which were previously included in the service charges on deposits and other income line items. Prior periods have been reclassified to conform to the current presentation. Card-based fees are comprised of debit and credit card income, ATM fees, and merchant services income. Debit and credit card income is primarily comprised of interchange fees earned when our customers' debit and credit cards are processed through card payment networks. The performance obligation is satisfied, and the fees are earned when the cost of the transaction is charged to the cardholders' debit or credit card. Certain expenses and rebates directly related to the credit and debit card interchange contract are recorded on a net basis with the interchange income.

Merchant fee income represents fees earned by the Bank for card payment services provided to its merchant customers, which are outsource by the Bank to a third party. Income is earned based on a revenue sharing agreement with the third party based on the dollar volume and number of transactions processed on a monthly basis.

Brokerage revenue

The Company had brokerage revenue for the periods presented mostly from the performance of brokerage and advisory services for its clients through Umpqua Investments. Brokerage fees consisted of fees earned from advisory asset management, trade execution and administrative fees from investments. In April 2021, the Company sold Umpqua Investments. Prior to the sale, advisory asset management fees were variable, since they were based on the underlying portfolio value, which is subject to market conditions and asset flows. Advisory asset management fees were recognized quarterly and were based on the portfolio values at the end of each quarter. Brokerage accounts were charged commissions at the time of a transaction and the commission schedule was based upon the type of security and quantity. In addition, revenues were earned from selling insurance and annuity policies. The amount of revenue earned was determined by the value and type of each instrument sold and was recognized at the time the policy or contract is written. Subsequent to the sale of Umpqua Investments, the Company's brokerage revenue relates to third party revenue share agreements for commissions on brokerage services.