Note 12 - Non-interest Income

The following table reflects revenue disaggregated by revenue type and line of business for the three months ended March 31, 2018 and 2017.



Non-interest Income by Line of Business	For Three Months Ended March 31, 2018
(in thousands)	Total		Community Banking		Corporate Banking		Retail Banking		Financial Management Services		Other
Service charges on deposit accounts	$	19,940	$	5,680	$	533	$	13,422	$	—	$	305
Fiduciary and asset management fees	13,435		—		—		—		13,435		—
Card fees	10,199		205		—		9,994		—		—
Brokerage revenue	8,695		—		—		—		8,695		—
Insurance revenue	1,213		—		—		—		1,213		—
Other fees	832		—		—		559		—		273
	$	54,314	$	5,885	$	533	$	23,975	$	23,343	$	578

Other revenues⁽¹⁾	12,732		2,452		1,733		1,529		5,843		1,175
Total non-interest income	$	67,046	$	8,337	$	2,266	$	25,504	$	29,186	$	1,753



Non-interest Income by Line of Business	For Three Months Ended March 31, 2017
(in thousands)	Total		Community Banking		Corporate Banking		Retail Banking		Financial Management Services		Other
Service charges on deposit accounts	$	20,118	$	5,771	$	459	$	13,437	$	—	$	451
Fiduciary and asset management fees	12,151		—		—		—		12,151		—
Card fees	9,844		219		—		9,625		—		—
Brokerage revenue	7,226		—		—		—		7,226		—
Insurance revenue	1,304		—		—		—		1,304		—
Other fees	842		—		—		574		—		268
	$	51,485	$	5,990	$	459	$	23,636	$	20,681	$	719

Other revenues⁽¹⁾	20,354		1,648		1,619		1,566		6,597		8,924
Total non-interest income	$	71,839	$	7,638	$	2,078	$	25,202	$	27,278	$	9,643

⁽¹⁾ Other revenues primarily relate to revenues not derived from contracts with customers.

Following is a discussion of key revenues within the scope of the new revenue guidance:

Service Charges on Deposit Accounts: Revenue from service charges on deposit accounts is earned through cash management, wire transfer, and other deposit-related services, as well as overdraft, non-sufficient funds, account management and other deposit-related fees. Revenue is recognized for these services either over time, corresponding with deposit accounts' monthly cycle, or at a point in time for transaction related services and fees. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers' accounts.

Fiduciary and Asset Management Fees: Fiduciary and asset management fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. Synovus' performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month-end through a direct charge to customers' accounts. Synovus does not earn performance-based incentives.

Card Fees: Card fees consist primarily of interchange fees from consumer credit and debit cards processed by card association networks, as well as merchant discounts, and other card related services. Interchange rates are generally set by the credit card associations and based on purchase volumes and other factors. Interchange fees and merchant discounts are recognized concurrently with the delivery of service on a daily basis as transactions occur. Payment is typically received immediately or in the following month. Card fees are reported net of certain associated expense items including loyalty program expenses and network expenses.

Brokerage Revenue: Brokerage revenue consists primarily of commissions. Additionally, brokerage revenue includes advisory fees earned from the management of customer assets. Advisory fees for brokerage services are recognized and collected monthly and are based upon the month-end market value of the assets under management at a rate predetermined in the contract. Transactional revenues are based on the size and number of transactions executed at the client's direction and are generally recognized on the trade date with payment received on the settlement date.

Insurance Revenue: Insurance revenue primarily consists of commissions received on annuity and life product sales. Synovus acts as an intermediary between the customer and the insurance carrier. Synovus' performance obligation is generally satisfied upon the issuance of the insurance policy; thus, revenue is recognized upon issuance of the policy. Shortly after the policy is issued, the carrier remits the commission payment to Synovus. Synovus earns an insignificant amount of trailer fees on sales of insurance products.

Other Fees: Other fees primarily consist of revenues generated from safe deposit box rental fees and lockbox services. Fees are recognized over time, on a monthly basis, as Synovus' performance obligation for services is satisfied. Payment is received upfront for safe deposit box rentals and in the following month for lockbox services.

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 balance 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. Synovus' non-interest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after Synovus satisfies its performance obligation and revenue is recognized. Synovus does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2018 and December 31, 2017, Synovus did not have any significant contract balances.