Revenue from contracts with customers

12 Months Ended

Dec. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenue from contracts with customers

10.    Revenue from contracts with customers

A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, mortgage banking revenues, trading account and foreign exchange gains, investment securities gains, loan and letter of credit fees, income from bank-owned life insurance, and certain other revenues that are generally excluded from the scope of accounting guidance for revenue from contracts with customers.

For noninterest income revenue streams, the Company recognizes the expected amount of consideration as revenue when the performance obligations related to the services under the terms of

a contract are satisfied. The Company’s contracts generally do not contain terms that necessitate significant judgment to determine the amount of revenue to recognize.

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, 2020 and 2019, the Company had $67 million and $62 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, 2020 and 2019, the Company had deferred revenue of $42 million and $43 million, respectively, related to the sources in the accompanying tables and recorded such amounts in accrued interest and other liabilities in the consolidated balance sheet.  The following tables summarize sources of the Company’s noninterest income during 2020, 2019, and 2018 that are subject to the noted accounting guidance.

	Business Banking		Commercial Banking		Commercial Real Estate		Discretionary Portfolio		Residential Mortgage Banking		Retail Banking		All Other		Total
Year Ended December 31, 2020	(In thousands)
Classification in consolidated    statement  of income
Service charges on deposit accounts	$	50,119		92,720		10,252		—		—		211,858		5,839	$	370,788
Trust income		18		442		—		—		—		—		601,424		601,884
Brokerage services income		—		—		—		—		—		—		47,428		47,428
Other revenues from operations:
Merchant discount and credit card     fees		40,475		45,528		2,221		—		—		13,481		767		102,472
Other		—		9,408		6,218		1,625		4,732		20,813		41,815		84,611
	$	90,612		148,098		18,691		1,625		4,732		246,152		697,273	$	1,207,183
Year Ended December 31, 2019
Classification in consolidated    statement of income
Service charges on deposit accounts	$	60,690		93,044		9,828		—		4		263,659		5,753	$	432,978
Trust income		31		963		—		—		—		—		571,614		572,608
Brokerage services income		—		—		—		—		—		—		48,922		48,922
Other revenues from operations:
Merchant discount and credit card     fees		36,844		52,161		2,516		—		—		12,140		3,381		107,042
Other		—		7,498		8,615		1,776		3,492		36,144		34,088		91,613
	$	97,565		153,666		20,959		1,776		3,496		311,943		663,758	$	1,253,163
Year Ended December 31, 2018
Classification in consolidated    statement of income
Service charges on deposit accounts	$	62,323		96,407		9,870		—		10		254,590		6,137	$	429,337
Trust income		9		917		—		—		—		—		536,659		537,585
Brokerage services income		—		—		—		—		—		—		51,069		51,069
Other revenues from operations:
Merchant discount and credit card     fees		34,557		52,051		2,213		—		—		14,924		2,208		105,953
Other		—		8,796		7,259		1,738		3,814		38,529		30,233		90,369
	$	96,889		158,171		19,342		1,738		3,824		308,043		626,306	$	1,214,313

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 fees related to the Institutional Client Services (“ICS”) business and the Wealth Advisory Services (“WAS”) business.  Revenues from the ICS business are largely derived from a variety of trustee, agency, investment, cash management and administrative services, whereas revenues from the WAS business are mainly derived from asset management, fiduciary services, and family office services.  Trust fees may be billed in arrears or in advance and are recognized as revenues 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 fees such as interchange fees and merchant discount 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 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 fees are generally recognized at the conclusion of the advisory engagement when the Company has satisfied its service obligation.