REVENUE FROM CONTRACTS WITH CUSTOMERS

With the exception of gains/losses on the sale of OREO discussed below, revenue from contracts with customers ("ASC 606 Revenue") is recorded in the service charges on deposit accounts category and the other service charges, commissions and fees category in the Company's consolidated statement of income and comprehensive income as part of noninterest income. Substantially all ASC 606 Revenue is recorded in the Banking Division. The following provides information on these noninterest income categories that contain ASC 606 Revenue for the periods indicated.



	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2018		2017		2018		2017
Service charges on deposit accounts
ASC 606 revenue items
Debit card interchange fees	$	4,580	$	4,143	$	8,789	$	8,189
Overdraft fees	4,087		4,408		8,195		8,852
Other service charges on deposit accounts	1,946		2,065		3,857		4,138
Total ASC 606 revenue included in service charges on deposits accounts	10,613		10,616		20,841		21,179
Total service charges on deposit accounts	$	10,613	$	10,616	$	20,841	$	21,179

Other service charges, commissions and fees
ASC 606 revenue items
ATM fees	$	632	$	656	$	1,294	$	1,329
Total ASC 606 revenue included in other service charges, commission and fees	632		656		1,294		1,329
Other	65		73		122		109
Total other service charges, commission and fees	$	697	$	729	$	1,416	$	1,438

Debit Card Interchange Fees - The Company earns debit card interchange fees from debit cardholder transactions conducted through various payment networks. Interchange fees from debit cardholders transactions represent a percentage of the underlying transaction amount and are recognized daily, concurrently with the transaction processing services provided to the debit cardholder.

Overdraft Fees - Overdraft fees are recognized at the point in time that the overdraft occurs.

Other Service Charges on Deposit Accounts - Other service charges on deposit accounts include both transaction-based fees and account maintenance fees. Transaction based fees, which include wire transfer fees, stop payment charges, statement rendering, and automated clearing house ("ACH") fees, are recognized at the time the transaction is executed as that is the 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.

ATM Fees - Transaction-based ATM usage fees are recognized at the time the transaction is executed as that is the point at which the Company satisfies the performance obligation.

Gains/Losses on the Sale of OREO - The net gains and losses on sales of OREO are recorded in credit resolution related expenses in the Company's consolidated statement of income and comprehensive income. 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 their 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. The Company does not provide financing for the sale of OREO unless these criteria are met and the OREO can be derecognized. The following provides information on net gains (losses) recognized on the sale of OREO for the periods indicated.



	Three Months Ended June 30,					Six Months Ended June 30,
(dollars in thousands)	2018			2017		2018			2017
Net gains (losses) recognized on sale of OREO	$	(220	)	$	256	$	(229	)	$	680