WesBanco adopted ASU 2014-09 as of January 1, 2018 under the modified retrospective approach and there was no material impact on WesBanco’s Consolidated Financial statements. Interest income, net securities gains (losses) and bank-owned life insurance are not in scope of ASC 606, Revenue from Contracts with Customers. For the revenue streams in scope of ASC 606 - trust fees, service charges on deposits, net securities brokerage revenue, payment processing fees, electronic banking fees, mortgage banking income and net gain or loss on sale of other real estate owned – there are no significant judgements related to the amount and timing of revenue recognition.

Trust fees: Fees are earned over a period of time between monthly and annually, per the related fee schedule. The fees are earned ratably over the period for investment, safekeeping and other services performed by WesBanco. The fees are accrued when earned based on the daily asset value on the last day of the quarter. In most cases, the fees are directly debited from the customer account.

Service charges on deposits: There are monthly service charges for both commercial and personal banking customers, which are earned over the month per the related fee schedule based on the customers’ deposits. There are also transaction-based fees, which are earned based on specific transactions or customer activity within the customers’ deposit accounts. These are earned at the time the transaction or customer activity occurs. The fees are debited from the customer account.

Net securities brokerage revenue: Commission income is earned based on customer transactions and management of investments. The commission income from customers’ transactions is recognized when the transaction is complete. The commission income from the management of investments is earned continuously over a quarterly period.

Payment processing fees: Payment processing fees are fees earned from the bill payment and electronic funds transfer (“EFT”) services provided under the name FirstNet. The fees are derived from both the individual consumer banking transactions and from businesses or service providers through monthly billing for total transactions occurring. These fees are earned at the time the transaction or customer activity occurs. The fees are debited from the customers’ deposit accounts or charged directly to the business or service provider.

Electronic banking fees: Interchange and ATM fees are earned based on customer and ATM transactions. Revenue is recognized when the transaction is settled.

Mortgage banking income: Income is earned when WesBanco-originated loans are sold to an investor on the secondary market. The investor bids on the loans. If the price is accepted, WesBanco delivers the loan documents to the investor. Once received and approved by the investor, revenue is recognized and the loans are derecognized from the Consolidated Balance Sheet. Prior to the loans being sold, they are classified as loans held for sale. Additionally, the changes in the fair value of the loans held for sale, loan commitments and related derivatives are included in mortgage banking income.

Net gain or loss on sale of other real estate owned: Net gain or loss is recorded when other real estate is sold to a third party and the Bank collects substantially all of the consideration to which WesBanco is entitled in exchange for the transfer of the property.

The following table summarizes the point of revenue recognition and the income recognized for each of the revenue streams for the three and six months ended June 30, 2019 and 2018, respectively:


	Point of Revenue	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(unaudited, in thousands)	Recognition	2019		2018		2019		2018
Revenue Streams
Trust fees
Trust account fees	Over time	$	4,208	$	3,558	$	9,263	$	7,850
WesMark fees	Over time		2,131		2,194		4,191		4,405
Total trust fees			6,339		5,752		13,454		12,255
Service charges on deposits
Commercial banking fees	Over time		499		462		967		869
Personal service charges	At a point in time & over time		5,698		4,684		11,780		9,100
Total service charges on deposits			6,197		5,146		12,747		9,969
Net securities brokerage revenue
Annuity commissions	At a point in time		1,454		1,310		2,815		2,510
Equity and debt security trades	At a point in time		103		87		206		189
Managed money	Over time		174		163		331		304
Trail commissions	Over time		242		249		481		476
Total net securities brokerage revenue			1,973		1,809		3,833		3,479

Payment processing fees (1)	At a point in time & over time		785		—		1,433		—
Electronic banking fees	At a point in time		7,154		5,728		13,046		10,558
Mortgage banking income	At a point in time		1,618		1,670		2,674		2,776
Net gain on other real estate owned and other assets	At a point in time		376		229		512		491