Revenue from contracts with customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers

11. Revenue from contracts with customers

The Company generally charges customer accounts or otherwise bills customers upon completion of its services. Typically the Company’s contracts with customers have a duration of one year or less and payment for services is received at least annually, but oftentimes more frequently as services are provided. At December 31, 2023 and 2022, the Company had $68 million and $74 million, respectively, of amounts receivable related to recognized revenue from the sources in the accompanying tables. Such amounts are classified in “accrued interest and other assets” in the Consolidated Balance Sheet. In certain situations the Company is paid in advance of providing services and defers the recognition of revenue until its service obligation is satisfied. At December 31, 2023 and 2022, the Company had deferred revenue of $54 million and $48 million, respectively, related to the sources in the accompanying tables recorded in “accrued interest and other liabilities” in the Consolidated Balance Sheet. The following tables summarize sources of the Company’s noninterest income during 2023, 2022 and 2021 that are subject to the revenue recognition guidance.

(Dollars in millions)	Commercial Bank		Retail Bank		Institutional Services and Wealth Management		Total
Year Ended December 31, 2023
Classification in Consolidated      Statement of Income
Service charges on deposit accounts	$	144	$	330	$	1	$	475
Trust income		2		—		678		680
Brokerage services income		6		—		96		102
Other revenues from operations:
Merchant discount and    credit card interchange fees		77		84		—		161
Other		28		30		8		66
	$	257	$	444	$	783	$	1,484
Year Ended December 31, 2022
Classification in Consolidated      Statement of Income
Service charges on deposit accounts	$	130	$	317	$	—	$	447
Trust income		—		—		741		741
Brokerage services income		5		—		83		88
Other revenues from operations:
Merchant discount and    credit card interchange fees		73		86		—		159
Other		24		28		38		90
	$	232	$	431	$	862	$	1,525
Year Ended December 31, 2021
Classification in Consolidated      Statement of Income
Service charges on deposit accounts	$	115	$	287	$	—	$	402
Trust income		—		—		645		645
Brokerage services income		2		—		61		63
Other revenues from operations:
Merchant discount and    credit card interchange fees		58		73		—		131
Other		13		30		40		83
	$	188	$	390	$	746	$	1,324

Service charges on deposit accounts include fees deducted directly from customer account balances, such as account maintenance, insufficient funds and other transactional service charges, and also include debit card interchange revenue resulting from customer initiated transactions. Account maintenance charges are generally recognized as revenue on a monthly basis, whereas other fees are recognized after the respective service is provided.

Trust income includes revenues from a variety of trustee, agency, investment, cash management and administrative services, asset management, fiduciary services, and family office services. Trust fees may be billed in arrears or in advance and are recognized as revenue as the Company’s performance obligations are satisfied. Certain fees are based on a percentage of assets invested or under management and are recognized as the service is performed and constraints regarding the uncertainty of the amount of fees are resolved.

Brokerage services income includes revenues from the sale of mutual funds and annuities and securities brokerage fees. Such revenues are generally recognized at the time of transaction execution. Mutual fund and other distribution fees are recognized upon initial placement of customer funds as well as in future periods as such customers continue to hold amounts in those mutual funds.

Other revenues from operations include merchant discount and credit card interchange fees that are generally recognized when the cardholder’s transaction is approved and settled. Also included in other revenues from operations are insurance commissions, ATM surcharge fees, and advisory and other fees. Insurance commissions are recognized at the time the insurance policy is executed with the customer. Insurance renewal commissions are recognized upon subsequent renewal of the policy. ATM surcharge fees are included in revenue at the time of the respective ATM transaction. Advisory and other fees are generally recognized when the Company has satisfied its service obligation.